3 Stock Picks as Market Breadth Sinks
Markets were down sharply this morning as fears of a possible Lehman Brothers 2.0 unfolds in China.
Still, the S&P 500 has defied reason this year, as a handful of big, strong companies, such as Amazon and Facebook, keep pulling the market higher. Beneath the surface though, most stocks are in correction territory.
This kind of “breadth deterioration” has preceded many significant market declines.
So … is it time to get out of stocks?
Ted and Clint show you what’s going on behind the curtain and reiterate a classic strategy to help you get ahead. Plus, you’ll see that big names aren’t the only way to play this lopsided market with the three stock picks they reveal at the end of the video.
“Do You Sell When Stocks Are Down?”
Last Wednesday, Clint said in his Bauman Daily article: “Don’t fear irrational investors.” Instead, use herd behavior to our advantage.
That lesson applies here as well.
Instead of selling when you’re down, look for opportunity. While others are fearful, be more selective (smart) and brave (tough).
When one of Ted’s Profit Switch readers asked if now was the best time to sell out of his fallen stocks, he asked back: “Do you sell when stocks are down?”
Watch today’s video for the answer and how not to make the same mistake as so many others.
Click here to watch or click on the image below: