Under normal circumstances, in the words of the Commodores, I would have been taking it easy, “easy like Sunday morning.”
But this was not a typical Sunday.
It was 6:45 a.m., and the lines were already wrapped around the building.
The night before, news outlets announced the coronavirus, or COVID-19, outbreak.
I tried to get out early enough to get my mom a few necessities from the grocery store. I didn’t want her to try it because she falls in the 65-plus category with a higher risk.
Even in the early morning hours, the shelves were picked through and bare.
I quickly and just barely snatched up the items my mother needed. That’s when I really took in my surroundings, and the stark reality hit me.
Folks are stocking up like never before to ride out this virus.
The meat department refrigerator shelves were empty.
Here’s my snapshot:
The novel coronavirus pandemic has each of us living in unprecedented times.
It’s a time to be hypervigilant and adhere to local and federal government recommendations and mandates to stay as safe as possible.
But, from an investor’s perspective, I also see this as one of those rare opportunities to buy fundamentally sound companies’ stocks at steep discounts.
Especially the ones that embody the new era of America 2.0.
What Years of Active Trading Taught Me About Market Volatility
I’ve lived through my fair share of market routs as an active trader.
The first was the late 1990s dot-com tech bubble, and then the Great Recession of 2007 to 2009.
What I learned from these crashes is to ignore the panic. Instead, I trained myself to take a step back to research and assess companies that still have sound business models.
If the company still produces or sells products consumers want, then despite market volatility, you can purchase shares at a discount to hold over the long term.
Guess what? It works.
The U.S. stock market is resilient.
Yes, it has its peaks and valleys, but over the long term, investing in companies that have a forward outlook and fill consumers’ needs will weather most storms.
So, what have I been doing during this COVID-19 market rout?
Following the Rules of the Game, I’m scooping up company shares that I’ve had on my buy list in small slugs.
These companies are now trading as much as 80% off. Eighty percent! Unreal.
These are great companies that sell products or offer experiences in which I actively participate.
One company, I absolutely adore. It’s a pure America 2.0 power play from our Profits Unlimited portfolio. I wish I could buy it myself, but I can’t wait for its stock to rebound and produce incredible gains for our readers.
If you want to learn more about America 2.0 stocks — which will be the biggest winners when the market rebounds — click here to watch Paul’s special video presentation.
Be Ready for the Market Rebound
I’m not the only one who sees this as a buying opportunity.
As this chart shows, CEOs of many publicly traded U.S. companies are right there with me.
Over the past two weeks, these insiders have been buying their own company’s shares at a “breakneck pace.”
Insider buying is now at a nine-year high.
As Bloomberg News reported, “when insiders are buying, they think their companies are well undervalued.”
In all, past buying sprees show that executives do start buying a bit early as they aim to find the bottom, but in all, “the last time insider buying spiked in this fashion, July 2011, the S&P 500 was in the middle of a 19% retreat before staging a 10% rally in each of the next two quarters.”
Here at Bold Profits, our main strategy is to look forward and invest in the mega trends geared toward shaping America 2.0.
Those mega trends include precision medicine, millennials, the Internet of Things, artificial intelligence, blockchain, autonomous vehicles and new energy.
When the markets are trading at a discount, it’s an even better opportunity to buy into these mega trends at rock-bottom prices.
We believe the companies in America 2.0 are unchanged. And they are going to bounce back stronger than ever.
So follow the Rules of the Game (click here for a refresh) and take advantage of these low prices to build your America 2.0 portfolio.
Wishing you and yours a safe and healthy outcome through this COVID-19 pandemic so we can enjoy the mega trend market rebound together.
If you have any questions about investing in this rebound or just want to share your Strong Hands story, you can write to us at firstname.lastname@example.org.
Until next time,
Director of Investment Research, Banyan Hill Publishing