3 Mistakes to Avoid During Stock Market Sell-Offs

  • (0:45) - Avoiding Investing Mistakes In The Stock Market
  • (9:15) - Top Stocks To Keep On Your Radar: Weakened Sectors
  • (19:30) - Big Takeaways When Investing In A Down Market: MU, PXD, SQ, PYPL, BAC


Welcome to Episode #279 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey went solo to talk about the three common mistakes investors make during a stock market sell-off, or correction.

If you can avoid the mistakes, sell-offs create buying opportunities. Stocks go on sale.

3 Mistakes Investors Make During a Stock Market Sell-Off

1.       They panic. Selling on a correction, if you’re a long-term investor and nothing has changed with a company’s business, is the biggest mistake most investors make.

2.       Moving to cash and then not buying again. Many investors get paralyzed once stocks rebound. Some even stay out of the market for months trying to “time” it.

3.       Think long-term, not short. The very nature of “investing” indicates it should be for the longer term or else you’d be a trader. Sell-offs and corrections are usually short term in nature.

If you can avoid the mistakes, there are always stocks that go on sale.

5 Stocks on Sale Right Now

1.       Micron MU shares are down 15% over the last 3 months. Yet it trades with a forward P/E of just 12.5. Earnings are expected to rise 110% in fiscal 2021 and another 108% in fiscal 2022.

2.       Pioneer Natural Resources PXD shares are down 7% over the last 3 months. Earnings of this energy company are expected to rise 631% in 2021 after the awful 2020, but are also expected to continue to grow another 50% in 2022. Pioneer trades with a forward P/E of just 11.4.

3.       Square SQ has been trading in a narrow trading range all year. Year-to-date shares are up just 11.6%. Yet analysts expect the company to grow earnings by 80% in 2021 and another 35% in 2022.

4.       Deere DE shares have fallen 9.2% in the last 3 months. But it’s still expected to grow its earnings by 106.9% in fiscal 2021. It is trading with a forward P/E of just 18.6.

5.       Bank of America BAC shares haven’t gone anywhere in months. Over the last 3 months, they’ve fallen 3%. Yet it’s expected to grow earnings by 75% in 2021. It’s cheap, with a forward P/E of 11.3.

What else do you need to know about surviving, and thriving, during a stock market sell-off?

Listen to this week’s podcast to find out. 

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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