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By Jason Stipp | 05-21-2010 01:21 PM

Five Upsides to the Downturn

Morningstar markets editor Jeremy Glaser offers a few silver linings following the market's recent string of cloudy days.

Jason Stipp: I'm Jason Stipp for Morningstar, and welcome to the "Friday Five." After a rough few days in the market, we here at the "Friday Five" are looking for any silver linings we can get. Here we me, with five upsides to the downturn, is Morningstar markets editor, Jeremy Glaser.

Jeremy, thanks for joining me.

Jeremy Glaser: You're welcome, Jason. You know I always like to see the glass as half full.

Stipp: So I'm hoping that you have five things that will make me feel a little bit better about what the market's been doing lately.

Glaser: Yeah, I hope so.

The market downturn gives us some opportunities to actually buy stocks for the first time in a while.

We're going to get a chance to assess our risk tolerance.

Rates are going to continue to be low for home buyers or potential refinancers.

It will be a good time to plan that European vacation.

And, finally, I think this could start a virtuous cycle which will get the economy solidly back on track.

Stipp: Well, for a while there, the market had been going up and up, and it seemed like there were no bargains to be had. But things might be changing a little bit on that front.

Glaser: Yeah, there were some small pockets of opportunity, but they were very little pockets. And we're certainly seeing them expand. We're off 10% from where the S&P's high was, and that gives us opportunities to buy high-quality companies.

I think most investors have a list of dream buys that they'd like. And some of them are getting cheap enough that you can actually get into those stocks at a reasonable price, at a good discount to their intrinsic value, and these are good long-term holds.

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