How Fear Affects The Stock Market: Stocks Soar After a Period of Fear
North Korea just fired a missile over Japan.
Houston is under 50 inches of rain.
The dollar is sinking. Gold is soaring. Bitcoin, the virtual currency, is soaring.
Some people believe a market crash is coming.
Others believe that a secret crisis is brewing in the economy.
When you put it together, they claim another 2008 meltdown is coming.
Some of my colleagues say you should sell all your stocks now.
They, and others, say buy gold and bonds.
Many of you are writing me with grave concern. Is it time to sell everything, you want to know.
I managed a $5.6 billion hedge fund through the 2008 crash. In 2000, when the dot-com tech bubble burst, I was an analyst at an elite fund. During the 9/11 terrorist attacks, I was a senior at a major asset manager.
My 20 years on Wall Street were filled with crashes, crises and disasters. I’ve gone through the worst markets in history. And with big money on the line, I’ve made the right calls.
I’m telling you all this because I want you to understand one thing: My views are based on hands-on experience of trading markets. This includes many of the worst points in market history.
I’m going to tell you what I believe is happening right now. And you should pay attention because my views are based on real, hands-on trading experience with billions at stake.
Right now, I believe that the markets are setting up to roar higher.
That’s right. I believe that the stock markets are setting up to roar higher.
That’s based on my past experience. You see, from past experience I know what comes after a period of fear.
I know that after a period of fear, stocks soar. That’s because so many people sell their stocks during a period of fear.
When no crash or crisis shows up, these people come back to buy stocks again.
However, these people have to pay up to get back in. That’s because the true “smart money” buys during fear periods.
In other words, they buy when the people who panic sell. Selling during a panic or fear period means getting horrible prices for your stocks.
When the panic is over, prices are higher. Usually, they are 20% or 30% higher. That means you’re now buying back the stocks you just sold at much higher prices.
I’ve Worked Every Job on Wall Street
This is why it’s critical for you to have an experienced pro like me in your corner.
I began as a lowly clerk on Wall Street. And I’ve worked every job on Wall Street, from the back office to where I bought and sold stocks worth billions of dollars for the richest people in the world.
I know the games that Wall Street insiders play. I know the tricks they use to trick the little guys to sell their stocks at the worst time. Or to buy in when prices are going to crash.
I can tell you right now, you should be buying stocks. If you already own stocks, you should be keeping all the stocks you own.
That’s because I see no crisis or crash coming. The three things that matter for me with stocks are 100% positive.
First, interest rates are low. Second, sales and earnings are rising. Last, we have mega trends like the Internet of Things and precision medicine setting up to deliver massive winners.
These mega trends are generating winners that are mountains over the stock market indexes.
This is why Profits Unlimited focuses solely on these mega trends.
Because of this, the Profits Unlimited portfolio is nearly doubling the performance of the S&P 500 in 2017. That’s 21% versus 11% for the index. And I believe greater gains are ahead for my Profits Unlimited readers.
Recently, I’ve uncovered two new mega trends. These new mega trends are in finance and energy.
I’m still completing my research on these trends. When my work is done, I’ll be recommending stocks that benefit from these new mega trends in Profits Unlimited.
I’ll also be writing about them here in Winning Investor Daily. Check back if you want to hear more about these trends.
Editor, Profits Unlimited