There’s an old Wall Street saying that goes, “Bulls make money, bears make money, pigs get slaughtered.”
No one really knows who originally said it, but its meaning is clear. You can make money in a rising market or a falling market if you’re disciplined. But if you hunt for stocks to buy while being greedy, sloppy and impatient, things might not work out as you hope.
This is a time to be patient. We’re more than a decade into a truly epic bull market that has seen the Standard & Poor’s 500-stock index appreciate by well over 300%. While value investors might still find a few bargains out there, the market is by most reasonable metrics richly valued.
The S&P 500’s trailing price-to-earnings ratio sits at a lofty 21. The long-term historical average is around 16, and there have only been a handful of instances in history in which the collection of blue-chip stocks has breached 20. It’s expensive from a revenue standpoint, too — the index trades at a price-to-sales ratio of 2.1, meaning today’s market is priced at 1990s internet mania levels.
The beauty of being an individual investor is that you reserve the right to sit on your hands. Unlike professional money managers, you have no mandate to be 100% invested at all times. You can be patient and wait for your moment.
Here are 13 solid blue-chip stocks to buy that look interesting now, but will be downright attractive on a dip.
Any of these would make a fine addition to a portfolio at the right price. And should this little bout of volatility in May snowball into a correction or proper bear market, that day might come sooner than you think.
To read the remainder of this article, see 13 Blue-Chip Stocks to Buy on the Next Dip
Charles Lewis Sizemore, CFA, is chief investment officer of the investment firm Sizemore Capital Management and the author of the Sizemore Insights blog.
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