Stock Market Sell-Off: 5 Magnificent Stocks I Already Own That I'm Waiting Patiently to Add To

The most attractive stocks to buy are often the companies you already own.

Mar 14, 2025 - 10:07
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Stock Market Sell-Off: 5 Magnificent Stocks I Already Own That I'm Waiting Patiently to Add To

Every so often, Wall Street reminds investors that stocks don't move up in a straight line. In span of roughly three weeks, the ageless Dow Jones Industrial Average, broad-based S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite have respectively sold off by 7.2%, 9.3%, and 13.1%.

This sell-off isn't the least bit surprising given how far beyond historic norms stock market valuations have risen. Based on the S&P 500's Shiller price-to-earnings (P/E) Ratio, Wall Street's most-followed stock index recently traded at its third-highest premium during a continuous bull market when back-tested to January 1871.

Though I remain a long-term optimist and recognize that high-quality businesses increase in value over long periods, I'm not oblivious to the historic correlation that Wall Street's major stock indexes tend to fall 20%, or greater, when the Shiller P/E Ratio becomes notably extended to the upside. This is to say that I'm eagerly on the hunt for a bargain, but also not itching to the pull the trigger on most stocks just yet.

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