“When will stocks rebound?”
Well, I really don’t want to waste your time trying to play a guessing game.
And I want to tell you why. That’s too hard to near impossible to do.
Because you’re going to be wrong more than you’re going to be right.
All-clear market signals are like Santa and the Easter Bunny. They don’t exist.
And the truth is, even if I had a crystal ball … it wouldn’t change a thing.
Instead, I focus on finding huge secular tailwinds — health care, semiconductors, cloud computing — that last for years.
Then, I buy quality businesses in that industry.
Such as Marvell Technology, HCA Healthcare and Arista Networks — all up more than 100% since we added them.
In nutshell, I stick with what is knowable and don’t waste time on what’s unknowable.
Like guessing when the market will stop falling.
And here’s something that we know is certain…
Money can be made in bull markets, but fortunes are made in bear markets.
Real Talk: Investing in the right stocks during a bear market has made money 100% of the time.
Instead of playing the guessing game for a market rebound, focus on what you have right now.
A bear market.
That means great companies at incredible bargain prices.
It won’t last forever, so the time to take advantage is now.
The average bear market is only 10 months:
Bull markets (blue) always follow the bear markets (orange).
But the last three major bull markets lasted over 10 years, each.
If you buy the right stocks and hold, you make money … 100% of the time.
Buy & Hold
This isn’t my first rodeo.
During my time on Wall Street, I saw the 1987 crash, the dot-com bubble and bust in 2000 and the financial crisis of 2008.
It always feels like the end of the world in each bear market.
People sell great companies over nothing that has to do with the fundamentals of a business.
They simply sold because stock prices were heading lower.
And that’s a big mistake.
What matters now is how you act.
Because when Mr. Market is full of doom and gloom, it’s time to be a buyer — not a seller.
Quality businesses do well regardless.
Since it went public, it survived six bear markets, inflation and double-digit interest rates.
For an investor who held, well, a $1,000 investment in Walmart? Today it’s worth $17 million.
So what should you buy and hold today for huge gains?
There’s one set of stocks that fly higher than the rest. I call them “M-Class” stocks.
Tomorrow, I’m going to dive into what sets these stocks apart.
Founder, Real Talk