Recessions are for Buying

Everyone seems to be worried about the economy these days. As a result, the market is tanking. People freak out and want to cut their loses, so they sell everything and get out. Those people are fools. Now is the time to invest more money in the market.

Almost everything is down. Rule number 1: Buy Low. Everything is low now, tech stocks and financials especially. Apple and VMWare are two great examples of stocks you should buy right now. They are down a huge amount, but not because they are doing poorly. They are down just because the rest of the market is down. Both of these companies are increasing profits, and more importantly, have great future prospects for increasing market share and revenue. They will go back up; it's just a matter of when the market settles. Instead of trying to cut losses, you should look toward future gains.

Another sector of stocks trading at great prices right now are the financials. Wells Fargo and Bank of America are down because of the market, and because of the sub-prime mortgage nonsense, and a lot of other factors. However, this is all relative in the short term. These are huge banks and they will go back up. Now is the time to invest in them. And let's not forget about Citi!

When the market as a whole is down, your first reaction might be to sell and save from losses, but the market usually makes its correction and will settle, and go back up. But in the mean time, the best opportunity to buy is when everything is down. A recession is great news for an investor!