1 Market to Avoid During the Coronavirus Panic
The markets have been a real roller coaster recently.
Again, let me reassure you: This is temporary.
We’re seeing a panic reaction due to the coronavirus and oil prices.
Because of this volatility, many people are unsure whether they should buy, sell or hold on through this market panic.
So, I’m going to cover all those concerns and reveal the one market you should avoid during this panic. I’ll also tell you why our America 2.0 bull market is still in full swing.
Check out the video below and find out how to trade in today’s market:
During market volatility, you may need extra guidance to hold your Strong Hands. That’s why I encourage you to follow me on Twitter @MampillyGuru.
I’m posting updates and advice day and night. Together, we’ll get you to become a Strong Hands pro in any market, even through this Coronavirus panic!
Market Talk being posted soon on You Tube telling people to please be Strong Hands with our America 2.0 stocks
if you are looking to buy, use Rules of the Game to buy
Start small, go slow, learn to stay in, finish big
— 🇺🇸Paul Mampilly (@MampillyGuru) March 9, 2020
Market news is a little different because we are entering the third week of the coronavirus (COVID-19) news cycle.
The whole coronavirus thing started out in early January and it seemed, initially, like it was going to be mostly limited to China and then it spread to Japan.
Now it is all over the world and it has generated a panic of extraordinary proportions.
Please go watch Market Talk I did yesterday where I addressed the coronavirus.
I referenced an article from the New England Journal of Medicine authored by Dr. Fauci who is the head of the National Institute of Health, which is the premier health organization in our country.
According to Dr. Fauci, when we put the final count to everything, the coronavirus will ultimately end up being something close to the regular flu.
I provided people with the article yesterday. Go check that out.
The State of the Market Based on Current Futures
Yesterday, as everyone knows, the stock market fell 7%.
What about today’s forecast, is this going to continue?
Futures contracts are one way to understand sentiment in the market.
Futures trade before the market even opens, allowing professional investors to make moves ahead of other people. Futures are extremely volatile, extremely risky and are ultimately an easy way to lose money very fast.
Nonetheless, the media follows the futures and often uses it to generate fear. They will tell you, “The futures are down 5%.”
That stimulates a lot of feelings of fear by people.
Today on the other hand, futures are up.
That means people are setting themselves up for rising prices.
Many of you will want to know if that means prices are going to rise from here in some guaranteed lockstep fashion.
The truth is, while I would like to be able to say that to you, that is never going to be true in any market.
Whether it be a post -7% panic market or at any other time, markets always go up and down. Something we all know. It could even depend on the time of day.
The demand today is clearly from people who were betting on the market to go down, they’re coming back in and covering their bets.
Some smaller regular and institutional investors are buying.
I believe that this is going to be part of the recovery process from this panic.
I said yesterday that many people believe the markets have one bottom. The indices often do, but each stock bottoms out on a different day.
Where is the bottom?
Look at any list of stocks and you will see that some may have bottomed last week, some may have bottomed yesterday and some may bottom over the next couple of weeks.
This is why I would tell you to go in and buy, but buy in slowly.
How Should We Invest Now, In This Climate?
I have been saying on Twitter; the way to invest at any time is to always start small, go slow and do the work.
Do the work on the company, do the work on the markets, learn to stay in when things are rocky, and then finish big.
The idea behind this is that many people have asked, “When is the perfect moment to buy?”
There is no perfect moment to buy.
Instead, target a series of prices that you feel comfortable purchasing stocks for, knowing full well that prices may go down after or up after you buy.
Target an average price.
Instead of focusing on when to get in, focus on the future. Focus on the coming gains.
Don’t measure your success or failure by where you began or where you started.
I would give this advice to a new investor or an experienced investor initializing investment in a new stock.
Buy in slowly over time.
Yesterday the stock market big indices — Dow, Nasdaq Composite, S&P 500 — went down by 7%.
Volatility and fluctuations are an essential part of the market.
So prepare for it.
You can take advantage of the market or be victimized by it.
for folks are who are not subscribers here's a short form version of what we call rules of the game that we guide people to use when buying in pic.twitter.com/3DvkLI7FfM
— 🇺🇸Paul Mampilly (@MampillyGuru) March 9, 2020
If you subscribe to my Twitter, you will see I tweeted out our Rules of the Game.
Remember the Rules of the Game so you can take advantage of stock market volatility.
Teach yourself how to stay in. The big money is never going to come unless you stay in.
I know a lot of people simply want a stock pick that will get them 3%, 5%, 7%, maybe even 10%. However, for me, I always want to make the big money — 50%, 100%, 500%, 1000%.
The reason next industrial revolution, the future extraordinary market is still on.
I understand there has been a lot of panic.
However, the America 2.0 bull market is driven by the megatrends, the millennial generation coming of age and the transformation that is happening in our economy.
The bull market is still on its way.
It’s underpinned by the Fourth Industrial Revolution which is really all of our megatrends put together.
A lollapalooza of megatrends:
- Internet of Things
- artificial intelligence
- precision medicine
- 3D printing
- new energy
- Space travel
Even 3D printing alone is going to become the dominate way to make things.
There are radical transformations going on in all parts of our economy — cryptocurrencies, fintech, developments in energy.
I would tell you from my perspective the glass is 100% half full and going up toward being full.
I believe it’s still early in this bull market. I know many people will say, “Paul, what are you talking about? The market has been going up since 2009.”
Yes, it’s true.
However, I would tell you that a lot of those gains are the result of old industry stocks.
You saw that yesterday. If you own stocks like ExxonMobil and oil companies, those stocks were down. If you own stocks of chemical companies, those stocks were down.
If you own stocks of the old, there will certainly be a bounce in some of those stocks.
I don’t want to get YouTube comments saying, “Paul, you said it was going to go down and it went up 3% yesterday.” I get that. I’m talking about much longer term. I am looking out a minimum of three to six months.
We are looking to make the big money. Hundreds of percent and even thousands of percent is what we’re looking for.
What has happened over the last two weeks is telling me this is a moment where you want to switch to all new stocks, all America 2.0 stocks and all Fourth Industrial Revolution stocks.
That decline in oil is telling you that there is an enormous transition happening in the stock market from old to new.
Stock market capitalization and stock market value is being poured from the bucket of the old into the stocks of the new.
The stocks of the new are Fourth Industrial Revolution and America 2.0 stocks.
The stocks of the new are our megatrends.
The stocks of the new is your opportunity.
Editor, Profits Unlimited
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.