Back to top

Image: Bigstock

Investing Advice for the Coronavirus Sell-Off

Read MoreHide Full Article

  • (0:30) - When Will The Selling Stop?
  • (6;15) - Where Should Investors Be Watching?
  • (11:15) - Warren Buffett's Insight During Financial Criss
  • (18:20) - Episode Roundup: VOO, VB, VBR, BA, XOM, MSFT, AAPL
  •                 Podcast@Zacks.com

Welcome to Episode #181 of the Value Investor Podcast

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

With the Dow now officially in a bear market sell-off, which means a 20% pullback from its all-time highs, and the NASDAQ and S&P 500 not far from that mark, stocks are officially on sale.

But it doesn’t appear there’s been capitulation yet.

And this is a headline driven market with high volatility.

What Should Investors Do?

Have a plan.

1.       Cash is king. If you have some, you’re golden.

2.       It’s probably too early to be buying, but keep a wish list.

3.       Keep dollar cost averaging in retirement accounts.

4.       You don’t have to be a genius. Invest simply.

Keep it Simple: Buy Index ETFs and Big Caps with Cash

1.       Buy the S&P 500 with Vanguard’s S&P 500 ETF (VOO - Free Report) .

2.       Buy small cap value with Vanguard’s small cap value ETF (VBR - Free Report) . It hit a new 52-week low this week.

3.       Buy small caps with Vanguard’s small cap ETF (VB - Free Report) . This also hit a new 52-week low.

4.       Buy large cap technology companies with billions in cash including Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) .

**On the podcast, Tracey said that the VB was large cap value. That’s wrong. It’s just the small cap ETF which includes both growth and value stocks.

If you’re interested in large cap value stocks, check out the Vanguard Large Cap Value ETF (VTV - Free Report) .

If in doubt, listen to Warren Buffett’s advice.

On Oct 16, 2008, during the volatility of the financial crisis, Buffett wrote a New York Times Op-Ed titled: “Buy American. I Am.

He wasn’t trying to pick the bottom. You shouldn’t try and pick it either.

He said to think long-term.

What else should investors be doing during this crazy time?

Find out on this week’s podcast.

[In full disclosure, Tracey owns VBR and MSFT in her own personal portfolio.]

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>

Published in