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So the markets are tumbling from day to day and all us responsible investors know that this is the perfect time to buy more. As I was thinking about it though, I wondered what different strategies people are using right now. I keep hearing about this being the time when people get rich—OK, I feel that whole vibe. But what are people buying? Are they buying individual stocks that they had on their watch lists? Or are they buying index funds? Mutual funds, ETFs? More of what they already own? There are tons of options.

Watch List

If you’re a really prepared value investor, you probably have a list of the stocks you’d love to own at a good price. Well, now’s the time that they’re finally hitting those price points that make them a real value. If you’ve read Rule #1 (a fine book, in my opinion), you know how impossible it is to find stocks that meet that criteria. Well, now a lot of those strict filters actually spit out companies you can guy. So if you’ve prepared and already done the homework, start cherry picking.

Stocks

Warning: just because stocks are “on sale,” it doesn’t mean you can just go out and buy any stock expecting to make some money. You still have to do your homework. Sure, you could just invest in blue chips like Coke, Procter & Gamble, Johnson & Johnson, and the other big companies that have been around forever. It’s *likely* they will continue their stability in the future. But if you’re going to buy stocks, make sure you’re not getting caught up in the moment—think of all the crap you’ve bought during those crazy Black Friday sales when it’s 4am and you think you’re getting great deals left and right. Unless you’ve got a list, chances are you’ll buy stuff you don’t really need/want.

Index Funds/Mutual Funds

Instant diversification in one simple purchase—that’s what these guys supposedly offer. I’m not a mutual fund guy, so I can’t speak on them too specifically, but I’m a huge fan of index funds. People keep saying “the market has tanked.” Well, that means the S&P index, the DOW index, all the indices out there are down in the dumps. That means the indices tracking those benchmarks are down. Simple enough for you?

ETFs

Similar to picking stocks, only they can have more diversification built into them. You can go just as broad as an index fund or just as specific as a stock, really. This gives you more flexibility if you know exactly what you want to put your money into.

Anyways…

That was just a quick rundown of my thoughts on each one of these securities and how they can help (and hurt) when you’re thinking of “buying when the market is down.” I’m more curious to hear the different strategies people are actually putting in place right now, today, as they navigate these treacherous waters.

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