The S&P 500 officially entered the bear market early in the week after dropping 21 percent from its peak in January. This marked S&P 500’s first bear market since March 2020, when the COVID-19 pandemic started. As a result, many investors entered the state of sell-off, which curiously also marks the best time to start buying, according to experts.
Ryan Payne, the president of the financial planner Payne Capital Management, believes that this testing time for S&P 500 is a perfect opportunity to expand your portfolio. According to Payne, investing in “old-school value names” like AT&T, Citigroup, General Motors, and Verizon should be a priority, especially for those who are in it for the long run.
“I think any of those old-school value names right now are great to have in your portfolio,” Payne told Yahoo Finance. “And don’t think twice here if you’re a long-term investor.”
The “long-term” distinction is particularly important here. The S&P 500 isn’t expected to recover anytime soon and might face even tougher challenges. However, the investment should pay off down the road.
“If you take the tech out of the S&P 500, you’re trading at 14 times forward earnings,” Payne adds. “That’s so cheap. That’s been as cheap as it’s been in years. I think you have a gift from the gods here as a long-term investor to buy.”