An investment opportunity can surface at any time; it’s an investment that can earn the investor a chance to make some money at that time by investing. The investment opportunity could emerge after an extreme drop in price for a particular stock, meaning there’s an opportunity to buy on the weakness. For instance, when the banking sector plummeted in 2008 due to the subprime credit crisis, bank stock prices fell to levels that were very attractive. This was an investment opportunity to buy bank stocks on the major sell-off. Another example was when the S&P 500 fell to lows in 2008; an investment opportunity emerged to buy on the market weakness, as it was overblown. The index has since rallied over 180%. In general, an investment opportunity can occur through market chaos or at any time when an event happens that benefits a sector or a stock. For example, if car sales begin to creep higher, then there would be an investment opportunity the auto sector stocks.
At this juncture, there could be another investment opportunity surfacing if the stock market is unable to move higher to record highs and retrenches. For instance, the S&P 500 adjusted down about six percent in October prior to rallying. Based on the recent two years, the decline was a potential investment opportunity to buy the index or stocks. An investment opportunity could occur when a stock sells off to levels that are excessive.