5 Reasons to Buy Stocks and 4 Reasons to Hold Them Amid the Market Volatility

As an investor, it's hard to see the market fall. Unfortunately, during tough economic times that's exactly what happens. It's frightening in times like these to look at your portfolio and see it drop -- sometimes in a big way.

That, however, is when you need to take a step back, evaluate the companies you own, and consider if your investment thesis holds. Are these still companies that you believe will be bigger in the long-term?

During an uncertain market, it makes sense to add to your positions in good companies and to hold onto stocks that will ultimately recover. Remember that you are not investing for today, but for many years in the future.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

A market downturn means you can purchase shares of great companies at a discount. If you believe that a stock's price has fallen because the market has dropped, not because something has changed about the brand, then use the drop as a chance to add to your holdings.

Walt Disney has suffered during the current pandemic. Its parks are closed and it has no theaters to show its blockbuster movies in. Does anyone believe that's not going to eventually change?

When the pandemic ends, consumers will again flock to Disney's theme parks and they will watch its blockbuster movies. This isn't a fun period for the Mouse House, but it's a temporary one.

ALSO READ: Is the Worst Over for Walt Disney?

If you get a cold, here is some good news: eventually you will get better. Think of the current market volatility as a cold -- it's a bad one, but eventually, things will get better. The market has crashed a number of times in history (and it may crash again during the current downturn) but it always recovers.

When a stock starts to fall it's tempting to want to cut your losses and get out. Before you do that, consider the fundamentals. Is this a temporary drop due to unique conditions or has something truly changed about the company. If it's the former, then your losses are just paper. Sit back and give the company time (sometimes years) to recover.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Companies that were strong before the pandemic are likely to come through it in the best shape. The many retailers which have gone bankrupt had that process accelerated by the pandemic but most likely would have happened anyway.

Times of trouble show you which companies have planned for a rainy day. They also show you which management teams can pivot quickly and find new ways to operate under changed circumstances.

ALSO READ: Here's Why We're Headed for a Stock Market Crash

If you have been out of work for six months and have depleted your savings and exhausted your emergency fund, it may be time to sell stocks. Fortunately, most of us haven't reached that point, so it's okay to hold onto your investments until you truly need them.

The current global crisis has opened investor's eyes to some companies that were slowly gaining market share. This situation has accelerated growth and helped some companies make it very clear that they will be market leaders even after life returns to normal.

Chances are you have a carefully-made retirement plan. There's no reason to deviate from that just because the market has dropped. You can, of course, make tweaks as needed, but it's important to keep your eyes on the prize and not deviate from your long-term goals.

ALSO READ: 3 Game-Changing Coronavirus Vaccine Stocks That May Make You Rich

Investors invest. If your income has not changed and you have money set aside each paycheck for investing, there's no reason to sit on the sidelines. Buy shares in companies you believe in for the long-term and tune out the short-term noise.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Daniel B. Kline owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney and short October 2020 $125 calls on Walt Disney. The Motley Fool has a disclosure policy.