Are you Ready

Ready to Get Rich in the Stock Market? 5 Investments You Can't Go Wrong With

Motley Fool06/25 20:28

Comcast

-0.40%

Post

Alphabet

+0.26%

Post

KEY POINTS

Look for companies that can do well regardless of the economic environment.

Also seek out organizations with strong potential for recurring, renewable revenue.

Whatever the company's prospects and business model, it's always better to step into the stock after a dip rather than at a high.

After seeing the market carnage since the start of the year, it would be easy to throw in the towel on stocks. Already down more than 20% from its highs, each of the S&P 500's recent rebound efforts so far seems to have faded pretty fast. We could see more downside before all is said and done, particularly given that summer and early fall are tepid times for stocks anyway.

As veteran investors can attest, though, the time to buy is on the dips. And yet trying to perfectly time any entries often hurts more than it helps. As 17th-century scholar Robert Burton put it, we shouldn't be "penny wise and pound foolish" by holding out for the exact bottom we may not actually recognize as the bottom at the time.