By Anthony Black 08.08.2011
With stockmarkets around the globe seemingly in freefall, investors are certainly feeling the pressure. Having just been through the GFC many have been burned all too recently, however it is precisely in times like these that the opportunity arises to pick up quality companies at bargain basement prices. The trick is picking which are bargains and which are simply damaged goods.
Much as the headlines may proclaim that this is the end of the world, most companies will continue to do business and make profits, and share prices in many companies will recover once we find a bottom. That's not to say that you should blindly dive into buying stocks that have been hit hard, or hold onto your portfolio in the hope that everything will turn out alright. Instead, this is the time to review your holdings and make some tough decisions about the stocks you hold. There are likely to be some that you will need to let go, replacing them with quality stocks that are likely to provide you with solid returns over the long term. If you hold a portfolio of high-risk, speculative stocks then diversifying your portfolio to include some solid, lower-risk companies may not be such a bad idea.
