Final opportunity for investors: Explaining why affordable purchases may no longer be achievable soon
Article:In recent times, you might've heard folks say, "The stock's fantastic, but blimey, it's too costly." Many savvy investors missed the boat because of such sentiments or jumped in at prices that were downright extortionate. The woe-is-me crowd, who saw their investments shrink, may have been dismayed by the ongoing inflation and the latest market dip. But here's the silver lining – shares are becoming cheaper by the day, and this opportunity might not present itself again anytime soon!
Corrections... A Necessary Evil?
Take 2018 and other corrections that didn't signal a market implosion, for instance. After the dust settled, indices bounced back, often surpassing their original levels in a dazzling display of upmarket euphoria. March 2020 was a prime example, with the market slumping but recovering within a few months. The average PE ratio of the S&P 500 stood at 25 in February 2022, rising to 29 in a year. A similar pattern held true in 2018, when the PE ratio of the index was 20 in July, reaching 22 by the next year. While this bear market may linger longer than expected, it could also come to an end swiftly. So, waiting for the "bottom" may be a futile endeavor, and many may find themselves scrambling to invest at inflated prices later. The advice? Grab this bargain now, while valuations are performing a death-defying plunge!
Time to single out some stocks
For those who'd rather not invest in the entire index, here's a trio of bargain stocks that haven't been this cheap in a blue moon and are unlikely to declare bankruptcy any time soon:
Microsoft (MSFT)- 2020 PE: 35- 2021 PE: 33- 2022 PE: 26
Microsoft, nestled in the BÖRSE ONLINE Stabile Werte Index, boasts a robust portfolio that should help it navigate through tough times.
NVIDIA (NVDA)- 2020 PE: 55- 2021 PE: 79- 2022 PE: 29
SAP (SAP)- 2020 PE: 43- 2021 PE: 24- 2022 PE: 17
Warning: Potential conflicts of interest
The CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, holds positions, directly or indirectly, in the financial instruments mentioned in the publication or related derivatives, which could benefit from the price development resulting from the publication: Nvidia.
Börsenmedien AG has developed the index under which the price of the financial instruments is derived and holds the rights to it. The company has entered into a cooperation agreement with the issuer of the displayed securities, which grants the issuer a license to use the index. In this arrangement, Börsenmedien AG receives remuneration from the issuer.
- The average PE ratio of the S&P 500 dropped from 25 in February 2022 to 26 by the time stocks were being discussed, signifying a shift in the market.
- Microsoft, a company listed in the BÖRSE ONLINE Stabile Werte Index, has seen its PE ratio decrease from 35 in 2020 to 26 in 2022, making it a potentially attractive investment opportunity.
- While the CEO of Börsenmedien AG, Mr. Bernd Förtsch, holds positions in Nvidia, a company mentioned in the publication, it's important to note that Börsenmedien AG has developed a index under which the price of the financial instruments is derived and holds the rights to it, and has a cooperation agreement with Nvidia that grants the issuer a license to use the index, ensuring potential conflicts of interest.
- Despite the market correction and ongoing inflation, 2022 has presented a unique opportunity for investors, as stocks are becoming cheaper, such as Nvidia, whose PE ratio has dropped significantly since 2020.
