Many think volatility = high risk.
Wrong!
Volatility is simply the price you pay for high returns.
And we’re seeing a lot of it right now.
The era of easy money is over.
Earlier this year, the two tailwinds that were pushing stocks higher … stopped blowing.
Higher interest rates and rising inflation have investors throwing in the towel.
Inflation is now near its highest level in 40 years. And the Federal Reserve just hit us with another 0.75% hike yesterday.
Both the S&P 500 and Nasdaq have entered bear markets.
But none of that matters. Here’s why…
In It for the Long Haul
Legendary investor Warren Buffett has said this about obsessing over interest rates:
It’s the same thing as predicting what business is going to do, what the stock market is going to do. I can’t do any of those things. But that doesn’t mean I can’t do well investing over time.
I couldn’t agree more.
Most investors are selling their stocks and want out at any price right now. But not us…
We avoided stocks that had great stories but little to no profit.
After all, I could never figure out how to value a business that’s losing money.
Instead, the companies I’ve recommended in my model portfolios are real businesses.
They’re real companies with real profits.
Because making money in the stock market isn’t that complicated.
All you need to do is buy a few great businesses at bargain prices and then sit on your butt.
In fact, you have a nearly 40% chance of losing money if you only hold a stock for one month.
But, if you hold for five years… Well, you can take that to the bank!
Your chance of losing money drops to just 10%.
What you really need as an investor is patience.
Because over the long term, the stock price follows the fundamentals of the business.
Sure, there will be ups and downs in the stock market.
But when stock prices disconnect from the fundamentals of the business, that’s the time to buy.
You might be thinking: “Okay, Charles, you’ve told me when to buy. But what great businesses should I buy?”
Introducing the M-Class
During bear markets, crashes or recessions … there’s one “class” of stocks that does much better than any other class, sector or industry.
I call them “M-Class Stocks.”
Historically, M-Class Stocks have returned as much as 24,000% during down periods:
Returns based on the last time this happened (2009 to 2021).
From the March 2009 bottom to the end of 2021 — the S&P 500 returned only 812%.
And the top 10 performing blue chips? Just 8,000%…
In the nine recessions from 1954 to 2001 … 9 out of 9 times, M-Class Stocks performed better than blue chips or large caps.
A perfect record.
Bear markets only happen once every 10 to 20 years.
That’s why you’ll want to take advantage of these opportunities ASAP…
I’ll tell you everything you need to know in a brand-new event next week.
Keep an eye on your inbox for more details on this event and my top M-Class Stocks to buy now.
Regards,
Charles Mizrahi
Founder, Real Talk
