What: Investors have just endured the worst week on the stock market since March with the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) recording a fall of 2.2%. There were a number of geopolitical issues and both global and domestic economic factors influencing the market last week. This week company reporting season will also swing into full gear which will provide some fundamental direction to the market as well.
So what: The market falls have dragged down the share prices of a number of high quality companies. For example, over the past five days shares in Flight Centre Travel Group Ltd (ASX: FLT) fell 5.3%, Perpetual Limited (ASX: PPT) sunk 4.4% and Macquarie Group Ltd (ASX: MQG) dropped 3.6%. In the case of Flight Centre, this week's falls have resulted in the stock now registering a negative one-year return.
Now what: It can be a good idea for investors to have a wish list of the stocks they would like to own given the opportunity to purchase them at a price they deem attractive. Creating such a list has a couple of benefits. Firstly, it forces an investor to identify which companies he or she considers to be of high quality and also what the value of those companies are. Secondly, it prepares investors so that they can react quickly and seize upon opportunities when stock prices fall.
