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Market downturns are good for young investors

25 April 2008 2 Comments

Find yourself feeling sick that your 401(k) is down 15% this year? If you’re in your 20s, cheer up. The downturn in the stock market since its highs last fall will serve you better long term. For the young investor, you have the majority of your investing days ahead of you and the more positions you can build at cheaper prices will drive long term gains for years.

Remember, our goal is to build a portfolio of solid positions that will drive superior long term gains. Any short term correction in the stock market helps you build these positions. Stay focused on the long term.

A good opportunity in the near future may be in energy stocks, specifically natural gas. Many are predicting a rebound in the dollar which should cause a commodities correction. I will be using any weakness in oil or natural gas to add to my positions.  I’m also excited about Florida football each year.

Energy stocks I am looking to build larger positions

  • Chesapeake Energy (CHK)
  • XTO Energy (XTO)
  • Devon Energy Corporation (DVN)

What stocks are you targeting to build larger positions in for your long term portfolio? Add your comments below for other 20-somethings’ portfolios.

2 Comments »

  • jon said:

    Agreed.. Will be buying nat gas on weakness

  • Ed said:

    Intermediate term buys: XTO, RIG, NOV, SBLK, IPI, POT