Another day, another battle for Aussie investors.
The S&P/ASX 200 (INDEXASX: XJO) has dropped a further 0.6% today, led down once again by the major banks and miners. Given that they account for roughly 55% of the overall index, it's no wonder the market is falling so hard.
The index is now sitting at just 5,285 points, which is a long way off the 5,672.7 high achieved earlier this month, and we're looking more and more likely to crash below 5,000 points as the days go on.
In recent years, investors became so used to the market climbing higher.
Now, we're being forced to accept the harsh realities that come with investing in the stock market. As it turns out, it's not all sunshine and rainbows, but also dark clouds and heavy downpours that roll over us, from time to time.
This time, it's a tumbling Aussie dollar and plummeting iron ore price that are forcing us south. Add in a strengthening US market (attracting foreign investors away from the Aussie market) and a waning Chinese economy and you can see why the effects have been so drastic.
However, these are actually the times where fortunes can be made.
While many investors appear to be selling their shares in a state of panic, the more rational ones are busy researching which stocks they should buy next.
Granted, it wouldn't be wise to throw all of your money in the market. After all, it could continue to fall far below its current levels, and you want to be prepared should that situation transpire.
But I believe now is the time to capitalise on some of the opportunities presenting themselves to investors.
In the blue chip corner, I think Coca-Cola Amatil Ltd (ASX: CCL) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) are becoming increasingly attractive. Meanwhile, more growth-oriented stocks such as Cash Converters International Ltd (ASX: CCV) and Cover-More Group Ltd (ASX: CVO) also look like compelling buys.
