5 US Stocks to Buy During the Market Dip (And My Buy Points!)

Stock Market Rebound and Investment Strategies with Lao Li

Hello everyone, I'm Lao Li. In this video, I will discuss strategies for navigating the stock market rebound, including five stocks to consider buying and price points for adding to your positions. I will also discuss my own account performance and the importance of a long-term investment approach.

Account Update and Market Perspective

In the past two days, my accounts have experienced some pullback. One day, the account decreased by $1100, and the previous day it fell even more, around $4300. In total, the account has decreased by more than $5,000 in the past two days. Before this, the account balance was at $260,000, and now it has dropped back to around $253,000.

It's important to understand that market corrections are normal and healthy. The stock market cannot constantly rise without some pullback. This recent rebound has lasted over four months, starting around April 7th, with minimal correction. It's natural for the market to experience a pullback after such a sustained upward trend. Historically, August and September have shown weaker average returns for US stocks. The average return rate in August is only 0.01% negative, while September's average return rate is 0.72% negative. Being mentally prepared for this correction allows for a calmer response.

The Stock Market Rebound as an Opportunity

I often say that stock market pullback is a booster for long-term investors' profits. The right strategy involves selecting high-quality stocks during the downturn, buying low, and holding for the long term. This approach enriches profits in the long run. The U.S. stock market has a history of "bear short, bull long".

Some investors panic during market downturns, leading to poor decisions like selling at the bottom. Others maintain a calm mentality and continue to buy during dips, which often results in very good returns. Market fluctuations are like a spring; the pullback allows for a stronger rebound in the future. Stock market pullback is a profit magnifier for long-term investors.

Five Stocks to Consider During a Rebound

Here are five stocks to consider buying or adding to your portfolio if the stock market continues to rebound or if it falls:

1. Nvidia (NVDA): Nvidia is a leader in the semiconductor chip industry and a global company. If I were to recommend a stock for retail investors to buy and hold long-term, Nvidia would be my first choice.

   • Valuation and Growth: While Nvidia's valuation is no longer the most advantageous among the "Magnificent Seven" tech giants, its revenue growth is significantly higher. Its profitability is also among the highest.

   • Strategic Importance: It's critical to consider including one of the "Magnificent Seven" tech giants in your long-term investment group. The semiconductor chip sector is a must-have for long-term investment. Inuita is a technology giant and the head of the semiconductor chip field.

   • Buy-in and Add Points: Consider opening a position in the $160 to $173 price range. Continue adding to the position in the $142 to $160 range. Be patient and build your position gradually. Don't try to guess the bottom.

   • Advanced Micro Devices (AMD): AMD, referred to as the "massage shop", has been disappointing lately. However, I believe it has potential for growth in 2025.

   • Valuation: AMD's valuation has increased, with a trailing PE of 99.73 and a forward PE of 42.73.

   • Comparison to Nvidia: While AMD and Nvidia are similar, Nvidia's revenue growth and profitability are higher. It is wise to deploy both at the same time

   • Position Sizing: Nvidia should hold a larger position than AMD. As an example, I hold 170 Nvidia stocks, making it my largest position (nearly 12% of my portfolio). I hold 120 AMD stocks, making it my third-largest position (over 7% of my portfolio).

   • Buy-in and Add Points: Aim to buy at or below $148, then add at $135 if it falls lower.

   • Tesla (TSLA): Tesla has been low-key recently.

   • Buy-in and Add Points: Continue to consider $300 as a buy-in point. Adjust the home warehouse to be in the 283 and 270 range respectively. *The price of $300 is for a company with more than 10,000 billion market value. If the company will reach this level, then it will be worth it.

   • Palantir Technologies (PLTR): Palantir's stock price has been retreating.

   • Performance: My PLTR profit has reached nearly 127%.

   • Valuation: Its trailing PE is 525.83 and forward PE is 250. The overall valuation is still very high.

   • Buy-in Point: Consider opening a position around $125.

   • Costco (COST): Costco is a very resilient stock.

   • Defensive Ability: Costco's stock didn't fall much during the market downturn.

   • Buy-in Point: Consider buying at or below $953 (the 250-day moving average or annual line).

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This video is over. As usual, I would like to ask all the fans... Click three times to like, comment and forward. Thank you for watching. See you next time.