3 Reasons Today’s Market Lows Will Lead to Tomorrow’s Highs
First: Don’t panic.
The market drops in recent days have been big. But this stock market low is temporary.
In fact, I see a rebound coming that will add up to a massive market rally. And in today’s video update, I’ll tell you why.
I know it’s been nerve-racking since last Friday, when the market — and many industries — bottomed out with new developments in the U.S.-China trade war.
But with many investors looking to sell out of fear, I’m here to tell you that this stock market low is not the end of the world, and we’ll come back from it bigger and better than ever.
Check out the video below to find out more.
Bold Profits Daily
August 6, 2019
Hey everyone. This is Paul with your Bold Profits Daily.Today I am going to give you a stock market update because I am sure many people today are looking at stock prices, looking at their accounts and they are in a panic. We have gone from where people were feeling good to where we have had three days of nonstop down, down, down.
You know that a little bit after that people are going to want to sell everything. Clear it out. Take the pain away. That’s what people are going to want to do. I am going to focus today’s video on why I believe this stock market is actually setting up to make even bigger highs that will make you regret getting out today.
I will say absolutely that there is no perfect way to call a perfect bottom on this. However, if you have followed my videos for the last year I have told you all of these panics, crashes, whatever you want to call them, they all bottom out in a curve.
I would tell you on a day like Monday when the market is down 3% and many stocks are down 5%, 10%, even 15% because someone is panicking and saying, “Please take my stock. I’ll take any price.” Just imagine in any other market if you had cash, what would you do?
Would you choose to buy? Would you choose to not follow the person that is willing to give their stock away for cheap when you know and they know it is going to be higher? Do you want to be the strong hands? In other words, hold through the volatility because you can see what is actually going on.
This is a panic driven by fear, by what you feel rather than what is going on out in reality. Here are three reasons why I believe you should stay in and focus on why stocks can go up even on days like Monday and any other day you see fear and panic and emotion driving people.
Reason number one. The U.S. economy is doing just fine. In the last quarter our economy grew by 2%. The unemployment rate in this country is the lowest it’s been in decades. There is rising wage growth. There is no inflation. Interest rates are low.
We have all these technological megatrends: Internet of Things, artificial intelligence, block chain, robotics and so many others that are reshaping our economy, life and society. Those are all things that are going to drive growth today, tomorrow and quite a while into the future. The overall conditions for the stock market to go up are there. Nothing has changed between Friday and today.
Second reason. While there are industries that are going to be hurt by the trade war, these are companies that, for the most part, focus on China or manufacture in China. They are looking at a case where they have to move their manufacturing out of China. Either back to the United States or to another country that we have a trade agreement with.
What is not known is that the United States has been making trade agreements with Japan, Europe and South American countries. Those countries are going to say if you’re leaving China, please come setup your manufacturing operation over here.
If you’ve been looking at it, China keeps falling down lower and lower on the list of our trading partners. They used to be number one and they’ve fallen to number three. The meaning and impact of what China means to our economy and our businesses is getting lower by the day.
The third reason that I believe you should stay in is that the biggest thing that really matters for the stock market is the thing that gets the least attention. That is there is demand for United States’ stocks. Good ol’ American stocks. In today’s world, our country represents optimism, innovation, ingenuity and most importantly demand.
We are willing to take our hard-earned money and spend. That’s why everyone around the world wants to make their product somewhere else and have us buy it. Obviously, as President Trump has laid out, if we allowed everything we bought to be made elsewhere we would be gutting our country out from the inside.
I’ve told you that while I believe the trade war is unpleasant and difficult, someone had to face up to the fact that China does a number of things that are wrong. They steal intellectual property, they don’t let our companies operate over there and play fast and loose with the rules by which they’re supposed to play.
I believe in the end China needs us more than we need them. The vast majority of our trading partners need us more than we need them. Those are three reasons why I believe this volatility is temporary. I believe it’s going to get done.
Now all that accumulated firepower of all the cash that has been raised from 2018 and now is going to come back into the market and you are going to see stocks shoot higher. That’s what I believe because that has happened in the past. As I’ve told you, there’s plenty of reasons why I believe now is a good time to own stocks.
If you don’t own them or you already own them, go ahead and anticipate that there will be a few more days like it. Never buy all in one shot. That way you can take advantage of bargains. I still believe that now is a good time for you to get into the stock market and be in the stock market.
That’s my stock market update for you this week. If you like this video, please give it a thumbs up. Subscribe to the channel and let me know what you think. Here is a shameless plug for my publisher’s conference called Total Wealth Symposium. It’s held between September 12 and 14 in Amelia Island, Florida.
If you can make it, I’d love to see you, Sign up for it. I’ll have another one for you next week. Until then, this is Paul saying bye.
Why Your Stocks Will Soar Higher Than Before
There are three main reasons why I believe the market will bounce back. And in today’s video, I’ll tell you exactly why it’s OK to breathe. This market is actually set to soar, with all the signs pointing up:
- The U.S. economy is booming. In the last quarter, the economy actually grew by 2%, which is a great sign for the resilience of the market. And a rise in wage growth, on top of the lowest unemployment rate in 50 years, only bolsters my belief in a market rebound.
- Location is key. The industries taking the hardest hits from the market drop currently focus their manufacturing in China. But, this is only a temporary issue. With a few corrections into different manufacturing locations, these affected companies will be back on their feet in no time.
- People want U.S. stocks! There’s still international demand for U.S. stocks. See, the stocks on American exchanges represent innovation and desirability, things that investors from other countries value greatly.
With all these things in mind, I believe that it will be just a short amount of time before the market bounces back and skyrockets into an even greater rally.
Editor, Profits Unlimited