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So when we have market meltdowns, particularly where they are quite fast so that the fundamentals are a guestimate moving forward (earnings), I don't buy individual stocks. I buy ETFs. I particularly like leveraged ETFs. I also like Close Ended Funds with big dividends, particularly if they have a consistent manager (ethos).

So I have bought: ERX, FAS, GGT, DFEN all at pretty close to the bottom. Only ERX is still showing a loss, got caught by the Arabs declaring a price war.

If you are going to buy individual stocks, then:

(a) Low P/B value (replacement cost of assets) that have in the past demonstrated high ROE (+15%);

(b) Low debt (allows debt to be added if required);

(c) High Quick/Current ratios (cash to stay in business/current liabilities);

(d) I like a high dividend (only if it frees up cash if it is cut).

jog on

duc