Cut the Panic: 2 Experts Weigh in on Fearful Market

Kristen Barrett

5 years ago

This week has tested all of us.

The Dow Jones Industrial Average seemed to plunge every day in response to the global coronavirus crisis.

On Thursday, the Dow experienced its largest one-day percentage drop since the Black Monday crash on October 19, 1987.

Investors are scared.

Take a look at this chart of the CBOE Volatility Index (VIX), aka the Fear Index:

(Source: Yahoo Finance)

Investors haven’t been this scared since 2008’s Great Recession.

We have a way to go before we reach those highs — and maybe we won’t get there at all.

But the same advice officials are giving us about the coronavirus applies to this market: We must not panic.

That’s easier said than done — but it certainly helps to have experts in your corner who have been through situations like this (and worse).

I want to let you know that you can get access to two of our smartest experts’ insights — each for less than the cost of a cup of coffee each month.

This week, I’m sharing our experts’ advice to their subscribers through the volatility, along with their readers’ responses.

Matt Badiali: “Don’t Sell Into This Market”

Real Wealth Strategist Editor Matt Badiali has reached out to his readers frequently, telling them not to sell:

We don’t want to sell into this market.

This is what my friend Rick Rule calls an “owl market.”

That’s when you want to sell, and your broker says: “To who? Who?!”

It means there aren’t any buyers. That’s what’s going on right now.

The markets are experiencing a crushing flood of sell orders and not enough buyers. When that happens, prices plunge.

We need to wait for now.

Buyers will come back into the market within a week or so. When that happens, we’ll reassess our positions.

We’ll revisit them once things settle down.

Don’t worry. We can handle this.

And as Matt’s readers let him know, this was just what they needed to hear.

Cathy E. wrote:

“Matt — I just wanted to say thank you for your words of calm. You have been the first voice of reason I have heard since this panic has happened.

“Hopefully people will stop losing their heads and start to think rationally. WE are creating the thing we fear most. And in my experience, a decision based on fear is usually a bad one.”

And BJ W. reached out to say:

“Matt, I know you’re busy. I’ll be brief.

“Thank you for taking the time to consider your followers by communicating throughout the day and offering updates. I realize that you too have assets at risk in today’s irrational market and appreciate your sage input and direction. It’s what we all look for as investors in the services offered at Banyan Hill … Thank you for your professionalism; it appears that you truly care. I’m a retired Navy officer and recognize leadership when I see it.”

This market isn’t for the faint of heart, and it’s a tough time to try to buy and sell stocks on your own.

We don’t want you to face this alone.

To get access to Matt’s guidance — for much less than a membership to Netflix or Amazon Prime — click here now.

Charles Mizrahi: “This Too Shall Pass”

Alpha Investor Report Editor Charles Mizrahi wrote to his readers early in the week:

What I do know is that this too shall pass.

Nothing in the U.S. economy has changed over the past three weeks that will impact businesses for the next five to 10 years.

High-quality businesses that were already financially sound before this sell-off occurred will bounce back stronger than ever — and those are the kinds of companies that our Alpha Investor portfolio is filled with.

That’s why sensible investors like us can sleep better than people who chase stock prices.

In fact, I’d actually be happy to see the stock market fall another 10% to 20%. That would allow us to buy dollar bills trading for $0.30 instead of $0.50!

So, do yourself a favor and sit back and relax. Let other investors worry over their portfolios, because ours is money good.

Fred D. liked Charles’ message, and he wrote:

“Charles, thank you for that simple yet sobering podcast on how to react to markets that are in panic mode.

“I am trying out your service and very much like how you think and invest.

“I am buying several of your portfolio recommendations. However, I must admit that when I told my family and friends that I was buying [an airline stock] at this time, they freaked out and thought I lost my marbles.

“We will see who turns out to be the crazy one in the next one to three years. Keep the great insights coming for your subscribers.”

To get Charles’ invaluable advice and insight, click here now.

We have more great content to share this week!

3 Videos to Guide You Through Volatility

Hear Charles Mizrahi’s thoughts on surviving the sell-off with his seven-minute video, “How To Invest During the Coronavirus Market Panic.”

Chad Shoop’s latest Bank It or Tank It dives right into the heart of the issue: How deep will this bear market run? Check out his 25-minute video, “The Coronavirus Market Panic.”