Market Panic: What You Should Do
That’s the best way to describe what’s happening in the markets today. Whether it be from the coronavirus or crashing oil prices, I’m going to tell you exactly what I see.
Please find your Strong Hands and hold on.
I am confident that this panic — like the one we faced in 2018 — will pass and usher in new market highs.
Watch this week’s Market Talk to see what you need to do today with your America 2.0 stocks in a panicked market:
All of the market mayhem has actually unveiled some of the best buying opportunities I’ve ever come across…
Frankly, I don’t know if there’s ever been a better time to join my Extreme Fortunes service. We currently have nine triple-digit winners in our open portfolio — even with the markets crashing.
And that’s only the beginning. See how you can grab one of those winners today.
Market Talk March 9, 2020
I know many of you are looking for answers.
The stock market is crashing and people are panicking. Covid-19 (The Coronavirus), Oil Prices crashing, The DOW plummeting, and trading halted; these are just a few of the concerns from the past few hours.
I want to assure everyone that our investing strategy, America 2.0, the plan we have been following for nearly 4 years, is still very much on.
Even last week as the markets were declining, our portfolios in many cases were up.
The Profits Unlimited portfolio was up.
The True Momentum portfolio was up.
The Extreme Fortunes portfolio was up.
We also started to see quite a buying related to a number of America 2.0 stocks.
I want to reiterate that I am still bullish, optimistic and positive.
Many of you will say, “But Paul, my account is down 5%, 10%, 15%. This stock is down 5%, 10%. This stock is down 15%, this stock is down 20%.”
I understand what you are saying.
However, just remember that in 2018 we saw stocks decline by as much as 30%, 40%, in some cases 50%.
You know what? They came back.
They are significantly higher today than where they were at that bottom in 2018. I just want to make it clear that stock prices are volatile.
What’s Behind the Current Market Panic?
Simple: money managers have to prove that they are worth all the money their clients pay in commissions.
Let me explain.
Money managers at large asset management companies — people who manage billions and billions of dollars — are feeling the pressure to justify their jobs, their necessity to their clients.
They need to show their clients that they are the best and they are working hard to save them money.
So… they are acting in any way they can justify.
They are selling as much stock as they feel they want to all at once, in one shot.
The problem is, as soon as other investors understand that you’ve come to sell everything all at once, you are going to get terrible prices for it.
That’s the nature of any market.
If everyone wants to sell all at the same time, the buyers will simply sit back and say, “Hey, you want me to buy this when no one else wants to buy this? I am going to offer you a terrible price.”
I understand the panic everyone is feeling. The decision you must make today is simple: should you join these people and sell?
The answer, I believe, is related to your future self. How will you feel in 6 months, or 12, when the markets are higher again?
That really is the decision everyone has to make. Do you want to take terrible prices now to simply join in or can you hold on?
I said this last week and I’ll say it again.
Market will always come to test you.
There’s no avoiding that.
You will need some fortitude, tenacity, courage, belief, conviction and trust to make any kind of money.
I believe in the America 2.0 bull market, and the astonishing amount of money that can be made.
I am telling you, if you can, find the tenacity, fortitude, trust and conviction to stay in.
We guide our subscribers using the Rules of the Game.
For folks who only own one or two stocks, just understand that sometimes even a fairly small dollar amount can be a large percentage.
Just as markets can go down very quickly, they can also turn around and go right back up. They can soar higher just like they did earlier this year.
Remember, it was barely two or three weeks ago where markets were making new highs.
Everyone wanted to buy in.
Today, we are going down and everyone wants to sell.
Ok, Let’s Get Specific About Market Panic
Obviously, the number one thing that people are worried about is the Coronavirus.
The authors say that the mortality rate for Covid-19 is calculated so high is because many people are undiagnosed and recover with almost no symptoms.
What’s known as asymptomatic.
From the article: “If one assumes the number of asymptomatic or minimally symptomatic cases is several times as high as the number of reported cases, the case fatality rate may be considerably less than 1%.”
In other words, the real mortality rate of the Coronavirus is likely, significantly less than what anybody is projecting or thinking right now.
It goes on to say, “This suggests that the overall clinical consequences of COVID-19 may be ultimately more akin to that of a severe seasonal influenza.”
In other words, the real mortality rate of the Coronavirus may be closer to the regular flu which has a case fatality rate of 0.1%.
This a paper that is published in, perhaps, the most prestigious medical journal in the world — the New England Journal of Medicine.
It’s written by very credible authors, including the head of the NIH.
He is telling you that when you look at this situation, in the end when the panic is over, in all likelihood the Coronavirus will have a fatality rate close to what we go through on a regular basis year after year with the regular flu.
Current projections made by the media are forecasting extreme outcomes for the coronavirus.
But healthcare professionals are putting it into perspective for us.
Our economy, our markets, our society will go through this and come out on the other side.
Then, we will start to go back to doing what we used to do.
This panic, I believe, will pass.
I believe by the end of this year, markets will rise to new highs.
I know that seems impossible today, but that’s what I believe.
That’s what I told people in 2018 and that came to pass. That’s what I would tell you with respect to the Coronavirus.
Experts have modeled a possible outcome where the Coronavirus persists for an extended period of time.
Even in a scenario where the Coronavirus affects us long term, the models show that the economy does not go into a recession.
The right move is to endure through this volatility
The markets will come back.
When they come back, they will hit new highs. People will look back at this period and wish they held, or bought in.
I would tell you that a great place to put your money into is America 2.0 stocks, new world stocks, Fourth Industrial Revolution stocks.
Buy in slowly because stock markets are volatile. They bottom out slowly over time. It’s usually a rounded curve.
Each stock bottoms out at a different period in time.
That’s my message for you. I understand why people are afraid, but the facts are in our favor with respect to the Coronavirus, the economy and the markets.
Ultimately, I believe once we go through this, markets are going to head higher.
Remember what I’ve been telling you for the past couple of weeks. Markets will anticipate. In other words, people will want to all-clear sign, but the markets will anticipate that and move higher ahead of that.
You want to start buying now, when prices are low and people are in a panic.
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.