“Should I sell?” asked my friend Megan.
“Did you see what happened on Friday?” asked my friend Justin.
After two months of going straight up, the stock market is going down.
My friends want to know, is this is “the end”?
“The end” to them means that the stock market is going to crash.
Like it did in the 2008 stock market crash.
Everyone now wishes they sold in October 2007, when markets peaked.
However, an even greater number now wish they did something else.
Because after markets crashed, they bottomed in March 2009.
Next, they started going up … and never stopped.
This stock market behavior was so unexpected that it’s left most investors out of the market. Every time the market’s made new highs, these people feel “fear of missing out” (FOMO) anxiety.
This includes lots of rich and even sophisticated investors.
In fact, every time the stock market goes through a period of decline, most investors root for it to crash because they’ve missed out.
Is this the moment that vindicates these investors who have missed out and stayed out?
A Recipe for a Huge Bull Market
No. There’s little chance of a crash right now.
The reason why is because the things that underpin the market are pointing higher.
Those things are future sales and earnings.
According to FactSet, earnings estimates hit their highest level of positive revisions in 16 years this quarter.
Broken down by sector, 10 of the 11 sectors recorded an increase in their earnings bottom-up estimates in January.
That means analysts covering nearly every sector of the market are saying that business conditions are incredibly strong right now for companies.
When you look at interest rates, they’re still low. When you consider how strong business conditions are, inflation is still tame. Globally, every major economy in the world is growing.
Business conditions worldwide haven’t been so good in decades.
Strong earnings, low interest rates, tame inflation and global growth is a recipe for a huge bull market.
Is This the Next Stock Market Crash?
This is what I believe is going to happen.
If you’re a regular reader of my articles, you know that I believe the Dow Jones Industrial Average is going to hit 50,000 and then go higher .
I’ve been saying this since early 2016.
Now, the stock market may go down some more. However, it’ll go back up, and then keep going up.
The bottom line, there is no stock market crash coming.
Yes, no question, seeing your stocks go down is painful.
However, this much I know from 25 years of investment experience: You’ll never make the big money, hundreds of percent in gains and even thousands of percent in gains, unless you press through times like this.
It’s Time to Buy
Now, if you’ve got money sitting in cash, and you want to avoid FOMO when the market keeps going up … you should go ahead and start buying.
These are the stocks I focus on because these stocks have the greatest growth potential. And I believe they will give you the biggest gains as this bull market for stocks continues.
Editor, Profits Unlimited