Daily Brief- Is it time to be greedy?

A bad start to 2022 just got a whole lot worse. The S&P 500, which fell 5.7%, and the Nasdaq Composite, dropped 7.6% and is now down 14% from its all-time high, had a rough start to the new year.

Both suffered their worst weeks since 2020.

Be greedy when others are fearful

Warren Buffett once said that it is wise for investors to be “fearful when others are greedy, and greedy when others are fearful.” Knowing when to jump into the fray is easier said than done, of course, but that Scooby sense is often what separates top investors from the crowd.

Experienced investors are starting to look for bargains. Barron’s roundtable selected 27 stocks they think are ready to buy now. In this week’s second 2022 Roundtable installment a panel of investors from across the industry picked their favorite stocks.

Click on the link to see the full list but many of them saw confirmation on TOGGLE, too. Madison Square Garden Sports (MSGS) appears oversold. Ditto for Shopify (SHOP).

Not everything that shines is gold

But screening for “oversold” stocks is a fraught endeavor. PTON, for example, has declined dramatically since the highs amidst rumours such as - said to be false - halting production amidt sagging demand.

Peloton stock tanked 24% on Thursday last week to below its IPO price, and was temporarily halted for trading. Shares have lost 70% of their value since November. But as Seeking Alpha warns, the valuation and fanatical clientele make PTON a very plausible takeover candidate.

Patience and diligence will pay off.

Screen carefully for your favorite indicators, fundamental or technical. Read up on the business background. And then pounce.