Bear Market = Buying Opportunity

The S&P 500 moved into Bear Market territory today officially by dropping 20% from its high set in late April. Even though the move is great for headlines it is not a significant moment for me. Whether the index is down 18% or 25%, either way it hurts.

At one point this morning the S&P 500 was down another 25 point before rallying back to move into the green during the lunch hour. It was another crazy day for stocks and we still have 3.5 hours remaining. It is truly anyone's guess as to where the market closes, but I will guarantee that there will be some wild swings before the closing bell rings.

So a buying opportunity? Yes it may sound crazy to use the word buy on the same day the market goes into a bear market. But then again I was never conventional and when has conventional made money in the stock market??

Here are a few stocks/ETFs that have been hammered and are now becoming hard to not buy at such discount prices.

(BUT AS I ALWAYS SAY, STOCKS ARE CHEAP - BUT THEY CAN GET CHEAPER!!)

SPDR High Yield Bond ETF (JNK) - Yep, a corporate bond ETF makes this list. JNK yields 9% and has been absolutely hammered recently. Down 8% in the last three weeks as investors fear the bonds in the ETF will default. As long as they make their interest payments we are all good. And with a large basket of bonds in the ETF the company-specific risk is removed. **Disclosure: PFG does own JNK for clients.

Applied Materials (AMAT) - The semi equipment company broke support yesterday at $10, but attempting to regain it today. With a 3.1% dividend and a PEG ratio down to 0.87. A value, income, and potentially growth play all in one.

Arcelor Mittal (MT) - The steel company broke to the lowest level in 7 years and is now trying to build a base at the $15 area. With a dividend of 4% and a PEG of 0.29 the stock is a screaming value buy. BUT, it was a value at $20. So be careful when considering this aggressive stock.