Peter Lynch: This Could Be the Best Time to Buy Stocks

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10월은 연말 세금손실 매도(tax-loss harvesting) 기간이라 하락 종목에 매수 기회가 있다는 주장. S&P500과 나스닥은 사상 최고치 부근이라 Lynch의 '폭락 시 매수' 조건은 현재 해당되지 않는다고 봄. Nike는 2013년 수준까지 떨어져 추가 하락을 예상. 실적 시즌(대형 은행, ASML, J&J, TSMC, PepsiCo)이 시장 방향을 가늠하는 계기가 될 것이라 언급.

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01. Hello guys, the October has started and that's why I decided to make a video which is going to be a kind of reminder about this specific time and the topic of the video is going to be the best time to buy and I'd like to refer to the one of the most legendary fund manager Peter Lynch book which is called One Up on Wall Street.

02. If you have never [snorts] read this book, I strongly recommend to read it. But even if you did before, it's a going to be nice reminder because I personally read maybe at least two times maybe three and uh there is really nice really practical things mentioned and today I'd like to discuss this topic when to buy stocks specifically based on the Peter Lynch approach and also So my personal experience confirms this particular one of the ways when is better to do so.

03. So let's go straight to the right page and Mr. Lynch mentions two particular periods when the stocks should be bought and he says that the best time to buy stocks will always be the day you've convinced yourself that you've found a solid merchandise at a good price. So it's this statement is good for the whole times.

04. It doesn't matter at which time of the year you are. But he mentions also that however there are two particular periods when great bargains are likely to be found and he gives us two these times but I'd like to use the opposite sequence. So let's start with this one that the best time to buy is during the collapses, drops and free falls that occur in the stock market every few years.

05. So each time we've got a correction in the market for whatever reason, it's time to consider buying the stock. So, and why I wanted to mention this one as the first because now actually this is not the time because as SNP500 index is close to the all-time highs and this is the yeartoate trend. So, you can see it's not the right moment.

06. Also, if we go to the NASDAQ and the NASDAQ is in alltime high mark at the moment. So, this one does not suit us. But the next one is that the Mr. Lynch mentioned as the first is during the annual ritual of end of the year tax selling. It's no accident that the most severe drops have occurred between October and December.

07. And that's why I decided to make this video in the beginning of October just to remind you that this opportunity has started. It's the holiday period after all and brokers need spending money like the rest of us. So there is extra incentive for them to call and ask what you might want to sell to get the tax loss.

08. So he's mentioning here so-called tax harvesting period. So the investors sell their negative return assets just to be able to claim back some taxes which they have paid during this year. And that's why usually the stocks which dropped quite a lot within a year they might go down even further during these particular months.

09. And my experience also proves that that when I follow some beaten down stock that during the this time the stock might go even lower even though the business itself started to show some positive trend and this is when I want to particularly pay attention to how the stocks behave the ones that are in my list.

10. So if you have in your list some beaten down stocks which you know which you follow that you made already research and you were kind of in doubts if to buy them. So this time of the year might be the best time to start building the position because most probably these stocks will be sold out even more by investors who decided to tax harvest.

11. So Mr. Lynch mentions here as well that for some reason investors are delighted to get the tax loss as if it's a wonderful opportunity or a gift of some kind. I can't think of another situation in which failure makes people so happy. So, thank you very much to Mr. Lynch. I've been using actually this device before and it's really I found it really very useful for me.

12. So uh we can have a look at the fin the heat map. So u this is the yeartoate performance and uh you can see that some of the sectors have been beaten during the year for example some of the software companies then we've got some telecom services then entertainment also a lot of stocks which belong to the consuming segment by the way so Nike reported last week and the stock price went down even further and I believe the stock price is at the levels of 2013.

13. So this would be kind of an example. I expect Nike to go a bit lower even further within the uh next coming months. So this was one of the reminders that I wanted to speak about in my video that the season started and and the second one is the season which is the earnings season which is coming soon actually.

14. So as I mentioned we had already some earnings. Uh last week we had Nike, we had Accentia, nice report by the way, we had Micron and in the next week we've got few more earning reports. For me personally, Pepsico is the one I'm mostly interested in. And the next week starts like the formal earning season when uh traditionally the big banks start reporting and also other representatives which belong to the different sectors like ASML would be very interesting.

15. Johnson Johnson as well TSMC they will give some colors to what's going on in the market. All right, guys. This was the reminder video, October to December reminder. Nice uh tax harvesting time, which might bring us some more opportunities and the earnings season coming up as well. So, do your research, track your stocks, and might be you will find the best entry for the new position or to add to the existing ones.

16. I hope you had a nice end of the weekend and I'll see you in the next videos. Have a great week.