Financial advisor
Financial advisor on the market: ‘Don’t think twice here if you’re a long-term investor’
The S&P 500 plunged into a bear market earlier this week for the first time since March 2020, sending many investors into a tizzy.
According to one financial advisor, however, the sell-off could present a buying opportunity — particularly in bank and energy stocks and companies like Verizon.
“I think any of those old-school value names right now are great to have in your portfolio,” Payne Capital Management President Ryan Payne said on Yahoo Finance Live (video above). “And don’t think twice here if you’re a long-term investor.”
The market has been on a steady decline since the beginning of the year, hammered by inflation and effects of the ongoing war between Russia and Ukraine.
May’s Consumer Price Index (CPI) data showed inflation has now reached a 40-year high at 8.6%, one day before the national average for a gallon of regular gas topped $5.00 a gallon.
“I think you buy with impunity here,” Payne said. “As a long-term investor, you buy when there’s blood in the streets. There’s blood in the streets right now, and it’s kind of like revenge of the nerds.
Value stocks, he said, have held up “way better.” These include companies like Verizon, along with Citigroup, General Motors (GM), and AT&T, which is the only stock among those listed that’s up year-to-date.