Corona-Crash: 3 Reasons to Buy Stocks Today
You are being tested.
We’ve been on a roller coaster in the stock market. The coronavirus has ripped through every headline, and the markets have plummeted.
I know it’s hard to believe, but this kind of choppiness is normal. Stocks will never go up in a straight line. But a lot of people will still panic.
These drops will test your Strong Hands. Believe me. I know it’s hard. I’ve been there. I once lost everything on one stock in a day.
But that was before I knew the Rules of the Game. But I found my Strong Hands that day. I stayed in. And it paid off. I made back all of my money and even turned a profit.
So if you’ve held your Strong Hands this week, congratulations. You’re a Bold Profits pro! And if not, it’s OK. We’ll help you get there.
What’s better is that the stock market’s recent “corona-crash” creates an incredible opportunity to buy.
So today, I’m going to tell you three reasons why you should ignore the panic and use this time to buy. And I’ll give you one crisis-proof investment that’s performed four times better than the S&P 500.
Reason No. 1 — You Have a Rare Opportunity to Buy the Best Stocks for Cheap
If you want to make money in the stock market, you have to buy low and sell high.
With the corona-crash, people are jumping ship and selling low.
This type of market behavior is common when we have a sudden drop. Investors become unsure of all their analysis and focus on the short term.
However, we want to remind you to not lose sight of what you’re investing in. Buying good stocks during the down days of this extremely choppy market is a rare and incredible opportunity.
As we’ve said time and time again, these are the times when we need to have Strong Hands. It’s easy to say when the market is at all-time highs, but now we get to feel what it’s like to actually do it.
Paul and I have been adding a ton of stocks and options to our portfolios over the past couple of weeks. Quick 16% drops in the market are nearly unheard of, especially when it’s unwarranted.
This gives us a major green flag to buy into companies that are disrupting the way we live with new technologies that will give their stocks enormous growth down the road.
That brings us to…
Reason No. 2 — Global Disruption
Right now, just about every industry on the planet is seeing a major overhaul brought on by technology that’s newer, more efficient and getting cheaper to implement.
This trend has been playing out in the market for years in some cases:
- The energy industry is shifting from oil and coal to solar, wind and other renewables.
- Delivery and e-commerce are overtaking just about every type of retail shopping.
- In health care, precision medicine is creating treatments and diagnosis methods for all kinds of life-threatening diseases.
- The addition of robots and artificial intelligence to manufacturing will boost production all over the world.
These are areas to invest in right now. This is the heart of America 2.0. And they’re the best opportunities in the market today.
And when the market drops like this, it’s a perfect time to buy in for the long haul.
Reason No. 3 — This Market Correction Is Driven by Panic, Not Facts
Like most corrections, this one has been driven by tons of panic and speculation. Essentially, the market is trying to price in a global recession and an epidemic in the span of a couple of weeks.
This is similar to what happened in December 2018. The trade war fueled panic of a recession, and the S&P 500 fell 16% in three weeks.
Just one month later, there was no recession in sight and many stocks made new highs.
Market panic — like what we saw last week and in December 2018 — is very different from “real,” justified crashes such as the dot-com bubble in 2000 and the financial crisis of 2008.
The big difference: Those market drops in 2000 and 2008 were driven by real events as they happened.
Right now, it’s almost pure speculation.
The dot-com bubble happened because the market priced in an unrealistically positive scenario. A lot of internet and technology companies turned out to be either too far ahead of their time or simply bad ideas. Many went bankrupt.
In the financial crisis of 2008, some of the largest banks in the world failed due to millions of people defaulting on loans.
Let me reassure you. We are nowhere near crisis territory. Last week’s drop was driven by panic. You see, people seem convinced that the next big crisis is on its way.
When you take a step back and look at the facts, nothing has changed. Our America 2.0 stocks are strong.
And now, we’ve been presented with a great buying opportunity.
4x Better Than the S&P 500: Buy the Crisis-Proof ETF
As always, we focus on buying companies of the future that can bring us the highest profits.
At Bold Profits, we invest in new-world companies that will disrupt the old.
One of my favorite ways to invest in disruption is by buying shares of the Ark Investment Innovation ETF (NYSE: ARKK).This exchange-traded fund (ETF) holds 41 stocks, all of which are in high-growth, new-world industries such as electric vehicles, precision medicine, 5G, 3D printing and more.
It’s been a great performer over the past few years, soaring by 175% since 2016 … more than four times the 40% return of the S&P 500!
Of course, anytime is a good time to buy ARKK, but buying it during a drop like this is an opportunity that shouldn’t be wasted.
Editor, Rebound Profit Trader