One way you can minimize your exposure to that risk is by focusing on value. And three stocks that look incredibly cheap right now are Viatris (NASDAQ: VTRS), Best Buy (NYSE: BBY), and AT&T (NYSE: T). All three are in negative territory this year while the S&P 500 has soared 28%, but here's why buying them now could be a great move.Why did the stock market begin to decline?
When the housing market fell, many homeowners defaulted on their loans. These defaults resounded all over the financial industry, which heavily invested in MBS. Consequently, companies doing business with these banks were negatively affected, and this pummeled their stocks, in turn.What past stock market declines can teach us?
Types of stock market declines. A look back at stock market history since 1951 shows that declines have varied widely in intensity, length and frequency. In the midst of a decline, it’s been nearly impossible to tell the difference between a slight dip and a more prolonged correction. The table below shows that declines in the Standard & Poor's 500 Index have been somewhat regular events.What is the biggest problem when investing in stocks?
There are two major drawbacks to investing in stocks: 1. You can lose 100% of your money in an individual stock. Stocks earn what are technically known as "residual" cash flows.