Investors Are Terrified — So It’s Time to Be Greedy
The March 2020 corona crash was financial Armageddon.
Stocks plunged 7% … 9% … and even 12% in a single day.
CNNMoney’s Fear & Greed Index, which tracks investors’ confidence, fell to nearly zero.
CNN called it “Extreme Fear.” And terrified investors couldn’t wait to dump all their stocks.
But by April 2020, the S&P 500 Index had rallied over 30%.
By August 2020, the index was already making new all-time highs.
And by July 2021, the markets had more than doubled since the crash.
Why am I bringing this up now?
Because we’re seeing “Extreme Fear” creep back into the stock market once again…
Every Market Panic Has Been a Buying Opportunity
Earlier this week, the Fear & Greed Index dropped below 15 for the first time since the March 2020 crash.
As you can see in the graphic below, this is extreme fear.
We saw similar levels of fear back in 2018.
The index dipped below 15 in March 2018 and December 2018.
But like the corona crash, the markets quickly rebounded by double-digits both times.
In fact, looking at the past 10 years, every market panic has been an incredible buying opportunity.
The chart below shows the S&P 500’s three-, six- and 12-month returns whenever the Fear & Greed Index dropped below 15.
How the S&P 500 Fares After Times of “Extreme Fear”
That’s a lot of green!
In the past 10 years, the stock market has always performed well after investors rushed to sell their shares.
On average, the S&P 500:
- Gained 11% after three months.
- Gained 14.5% after six months.
- Gained 22.6% after 12 months.
Those are phenomenal returns you can’t afford to miss out on.
Be Greedy When Others Are Fearful
Investors are fleeing tech stocks.
On Monday, the tech-heavy Nasdaq Composite Index officially entered a bear market.
But as legendary investor Warren Buffett said: “Be fearful when others are greedy, and be greedy when others are fearful.”
That means it’s time to be greedy.
Ian King recently highlighted a great tech stock to buy right now.
Its product is vital to the future of the electric vehicle industry.
Now’s your chance to grab shares before the stock market rebounds.
You can learn more about this opportunity by clicking here.
Assistant Managing Editor, Banyan Hill Publishing
From open till noon Eastern time.
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