Shock absorbing

S&P 500 Index stocks are struggling, beset by surging oil prices amid violence in the Middle East. The market’s weakness has spilled over to our top picks as well. We know corrections happen during every bull market, but that does not dull the pain.

During downturns like the one we are currently experiencing, it’s worth remembering why we selected our stocks in the first place — reasonable valuations, attractive operating momentum, and robust growth prospects — to maintain confidence to scoop up additional shares at a discount. If we believe in our stock-analysis approach and do not see current events having much effect on the profits of most companies, we should not shy away from buying quality stocks on the dip.