The old investing adage of buy low and sell high is true now more than ever.
And with the equities market again plummeting today, down over 1900 points (11:20 ET) , now is the time to get into the market, according to one money manager.
Gerry Frigon, President and Chief Investment Officer at Taylor Frigon Capital Management spoke with Traders Magazine and said that despite the current market swoon not being a “garden variety” type is still a correction – and that with all corrections buying opportunities emerge for those willing to commit. And for those who do commit, more correction can be seen and it is not unprecedented in the history of the market.
“We expected a correction in markets could happen at any time and have been warning our investors that such an occurrence was normal, and healthy,” Frigon said, “In fact, as recently as the fourth quarter of 2018 the markets experienced a similar selloff. In that instance, the markets recovered relatively quickly and 2019 was one of the stronger market returns in years. We expect this correction will be similar.”
Frigon added investors should ignore the current market noise and continue to focus on the businesses one is already committed to.
“We believe that by analyzing the business in which our companies participate is much more useful in determining how long term value is created. On that front, we are extremely pleased with the progress our businesses are making,” Frigon said. “Keeping focused on the business centers us and keeps us confident when the market is having one of its hissy fits or panic attacks, as the case may be.”
But he does caution that ignoring market prices and drops is unwise. As the market swoons it is possible to add to positions and make smart purchases. He urged investors to observe the market and add to holdings where prudent.
“Level-headed calm is what is needed in times like this. We’ve been through many of these periods in the past and will come out of this one just as favorably as we did the previous episodes,” Frigon said.