5 Stocks to Buy While Others Are Afraid
My biggest concern: I am waiting for a couple of paychecks to clear. In fact, until they do, it would not bother me if the market continued to correct, drop, tank or even crash.
I fully understand that the prospects of these things scare many people. If you need your money soon and you're all-in, I understand your fear. When the day comes that I am two-to-five years out from needing cash from my nest egg, I will have tucked a more-than-sufficient portion of it under my proverbial mattress.
Short-term sentiments aside, as a long-term investor, I am buying the following stocks on weakness.
Names to Buy on Weakness
Electronic Arts(EA) , Activision Blizzard(ATVI) and Zynga(ZNGA) . That's right. I like all three stocks. If a space exists where multiple companies can not only co-exist but thrive, the gaming sector is it.
Investors have bruised and battered each of these stocks. As of Tuesday's close, EA is down 44.6% from its 52-week high. ATVI is off 13.9%. And ZNGA took a 50.2% haircut.
Hold on tight, but if I were to create a basket between these three stocks, I would allocate 50% in ZNGA and 25% each in EA and ATVI. Yes, overweight ZNGA. Before you start talking about "bubbles," "irrational exuberance" and "dot-com booms and busts," let me explain myself.
First and foremost, I am a long-term investor. When I buy a stock, I do so with a time horizon measured in several years, not days, weeks or even months. And I buy future potential.