Stock market selloff could be major buying opportunity
Why this expert is saying, "buy the fear."
In today's uncertain environment, many investors are feeling the pressure to make quick decisions. George Seay, founder & chairman of Annandale Capital, joined TheStreet to discuss how everyday investors should approach market volatility.
Related: Crashing stocks may set S&P 500 up for major move
Full Video Transcript Below:
GEORGE SEAY: I would say take a hard look at your allocation and how much you have in stocks. If you're 100% in the stock market, you have an opportunity right now to reduce that if you're nervous. And if you can't sleep at night, I think sleeping at night is the number one factor in terms of how you're investing. You should be able to sleep at night and not not be overly concerned about your investments. So if you're 100% in the market, maybe you ought to go to 80% or 70% or something like that. And if you've got excess cash on hand or other capital to invest when the market descends, which it may do over the next 9 to 12 months, I think that's a that's a high likelihood with how far we've come and how highly priced most stocks are.
Buy more. Get back in the market. So you want to buy fear and sell greed. And right now we've got a lot of fear and it's getting more and more fearful. So take advantage of that if you're an investor and buy more when you have the opportunity. But don't be in a hurry to do that. Be very patient. These things take time to play out. Bear markets, fortunately, are a lot shorter than bull markets, but they do take some time to play out. They take at least 9 to 30 months to play out. So you've got plenty of time to assess this. So be patient, make good decisions, and be objective and unemotional in how you make your investment decision making. Most people are very emotional when it comes to investing, and that's the wrong way to be alright.
