When to Buy Stocks After a Market Correction

The stock market just experienced its worst week in two years to start February when the Dow fell by more than 10% before beginning to recover. Investors and traders alike were caught off guard after a year of record gains, when the Dow surged from 20,000 to 25,000 points in record time.

Now that the dust has settled, we want our readers to be prepared for the next correction by showing you when to buy stocks after a market correction...

One of the advantages of a stock market correction is it puts stocks "on sale," giving savvy investors a discount on some of the best companies in the world.

Must-See: This Great Depression-Era "Secret" Helped Transform Two Teachers into Millionaires. Read More...

You see, this recent correction was largely the result of computer-executed trades driven by large investment firm trading algorithms. Once some algorithms starting selling stocks, they triggered other computers to sell, spiraling the market down.

And when computer algorithms - or emotional investors - create a stock sell-off, you can profit. As long as stocks fall thanks to traders and computers "following the herd" instead of an actual crisis or change to the business environment, then the sell-off is simply discounting stock prices.

We want you to be prepared for the next correction so you can turn the volatility into profits...

When to Buy Stocks After a Market Correction

If you're unsure about when to buy stocks after the market corrects, you're not alone. Should you buy after it drops 10% or hold out for a potential 20% drop?

It turns out, it's actually better to prepare for what you'll buy instead of when you'll buy during a stock market correction.

There's no magic number to look for that will tell you when to buy during a market correction.

And studies have shown investors' entry points don't affect their overall returns all that much. Throughout the entire history of the stock market, stocks have always recovered after crashes, corrections, and stagnations.

stocks to watch

It's simply more important to be in the game than trying to guess the best time to enter.

So take your discount when the markets dive thanks to overreacting traders or computer algorithms, and don't sweat the exact entry point.

Instead, spend some time right now planning on which stocks you want to own, so when the market pulls back again - and it will - you'll be ready with a plan.

And to help you put that "shopping list" together, we've got two of the most must-have stocks you can own...

2 Stocks to Buy That Will Outperform the Market

[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]

We have two stocks on our "shopping list," and while there's nothing wrong with buying them now, a correction is a great time to stock up or add more to your portfolio.

These stocks are in leading companies in must-have industries, meaning no matter what else the market is doing, they will still be in demand and growing.

The trick to making huge profits is to find "must-have" companies that fall into these six "Unstoppable Trends": medicine, technology, demographics, scarcity and allocation, energy, and war, terrorism, and ugliness (also known as "defense"). The Unstoppable Trends are backed by trillions of dollars that Washington cannot derail, the Federal Reserve cannot meddle with, and Wall Street cannot hijack.

By owning well-run companies in these Unstoppable Trends, you'll own resilient stocks that will charge out of any market downturn, leaving behind anyone who sold off stocks for other assets. And if the market doesn't correct, these stocks are still going up.

That's why we're bringing you two of our favorite stocks from the Unstoppable Trends.

Raytheon Co. (NYSE: RTN) is our play for the trend of war, terrorism, and ugliness.

Raytheon is a leader in the defense industry, with billions in contracts with the U.S. government and other countries across the world. That means if the market falls, Raytheon is going to continue to excel over the long term.

Raytheon has billion-dollar contracts with the U.S. government, but it also has a diverse customer base. International customers make up just under half of its business. That means even if a few countries cut defense spending during an economic downturn, RTN still has plenty of other customers to help it weather the storm.

But RTN's real allure as an Unstoppable Trend pick is the fact that war is a reality of the world. For instance, as tensions rise abroad, the United States is more likely to need more weapons and equipment. When the United States launched a missile strike on a Syrian airbase on April 7, Raytheon's stock jumped more than 2%, since its missiles were used.

RTN currently trades at $215.61 a share and pays a 1.48% dividend yield.

Becton, Dickinson and Co. (NYSE: BDX) is an example of a play in the Unstoppable Trend of demographics.

BDX is a healthcare company specializing in one-time-use medical products utilized in hospitals and long-term care facilities. That means as populations age, more people will need this type of medical care, and BDX will be in even higher demand. People will need healthcare whether the market falls or not.

But BDX is also an exceptionally well-managed company. It has a 10.54% profit margin and maintains a 1.58% dividend yield, even after a $12.2 billion takeover of CareFusion two years ago. That means the company's capital management is sustainable and will easily survive a market downturn. And that's good news for its shareholders during a stock market crash.

BDX trades at $218.47 and pays a 1.37% dividend yield.

But you don't have to wait for the next correction to find lucrative stock opportunities. Keith's subscribers got 20 triple-digit-winning recommendations last year, and it's not too late to sign up for this year...

20 Triple-Digit Winners in 2017 (This Year Could Be Even Better)

Keith Fitz-Gerald's Money Map Report subscribers who followed along with his recommendations took down 20 triple-digit winners last year - including a 201.68% return and 132.35% gain that closed out in the same week.

Two days into 2018, they closed another triple-digit winner worth 276.92%.

Each week, Keith shows everyday Americans how to tap into the world's biggest high-profit trends, ahead of the crowd.

There's nothing complicated or overly risky - and no guesswork involved.

Right now, he's looking at another double-your-money opportunity, and there's still time to find out how to subscribe and access all of Keith's recommendations by clicking here now.

Follow Money Morning on Twitter @moneymorningFacebook, and LinkedIn.