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Falling prices mean these 2 stocks look worth buying now

It’s amazing how quickly the market’s sentiment can change.

At the beginning of the month, we were cheering the market higher, possibly towards the 6,000 point mark. Heck, we even said that the 8,500 point mark wasn’t out of the question!

Now, investors find themselves in a state of disbelief.

The benchmark S&P/ASX 200 (INDEXASX: XJO) has retreated more than 5.5%. It could even fall back below 5,000 points in the near future.

Chinese growth is slowing and iron ore is at its lowest point in more than five years at just US$78.60 a tonne.

To make matters even worse, not even the banks are standing up to the occasion. In fact, Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) all find themselves in a “technical correction” with their shares down more than 10% since their peaks.

And it could get worse…

The Aussie dollar sunk below US 88 cents on Friday as foreign investors continue to withdraw their money from the local market, instead preferring the outlook for the US economy.

That means there could be more pain in store for the nation’s high-yielding stocks which have been the driving force behind the market’s surge in recent years.

You know what they say: The bigger they are, the harder they fall.

And the banks aren’t the only ones falling – not by a long shot. BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Woolworths Limited (ASX: WOW) have all taken a nosedive too.

A trader’s nightmare, a buyer’s dream come true

Of course, these conditions can prove deadly to those ‘investors’ who frequently buy and sell stocks, hoping to ‘time’ the market’s movements.

While they might get lucky, from time to time, I’m willing to bet that their wealth will suffer in the long run.

For value investors, on the other hand, this setback is a dream come true.

I’ll admit that even I was growing increasingly hesitant to buy stocks when the ASX 200 was pushing on past the 5,600 level. Not because I was predicting a setback, but because it was becoming more difficult to find high-quality stocks trading at reasonable prices.

Now however, I’m licking my lips at the opportunities laid out in front of me.

While I’m still not tempted by the lure of the big four banks, there are certainly some small and mid-cap stocks that are grabbing my attention.

For instance, right now I would love to buy shares in Cover-More Group Ltd (ASX: CVO) and Veda Group Ltd (ASX: VED) – both of which have retreated in price recently. I recently also named four other stocks I would love to buy if I had $10,000 to spend, which can be found here.

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Motley Fool contributor Ryan Newman owns shares in Veda Group Ltd.

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