A list of stocks I'm looking to add to, and at what levels, if we continue to correct.
Focus List
It feels like we are in the midst of a “rolling correction” as many sectors continue to be hit. Whether or not we see a meaningful drawdown at the index level, it is a good idea to build a narrow watchlist of 10 to 12 stocks to focus on during a downturn. I am currently holding approximately 20% cash and will maintain a 10% to 20% buffer, ready to deploy it as opportunities arise.
Furthermore, we are in a mid-term election year, and there tends to be a significant drawdown in the S&P 500 within the 12 months leading up to Election Day. While the average drawdown is 18.2%, post-mid-term performance tends to be strong. Given the current macro backdrop and geopolitical events, further volatility is to be expected, possibly even exceeding what we have been experiencing lately.
Lastly, please note that this is not financial advice; you must conduct your own due diligence before purchasing any of the assets mentioned. Also, always employ appropriate position sizing and utilise stop-losses to protect your capital. I would ensure to read my posts such as the one below to appreciate how to build a position:
We will now take a look at the stocks I fundamentally like and the price levels I am watching. I have also included a few requests below.
List of stocks I feel are attractive to add to, and at what levels, if we see a meaningful correction:
