Etiqueta: stock market

Publicado en finanzas

How to Take Advantage of a Bear Market

Publicado el por Marvin Gandis

A bear market is a market condition where the prices of securities or assets are falling, and investor sentiment is negative. It is a challenging time for investors, but it can also be an opportunity to take advantage of the lower prices and potentially generate profits in the long run. Here are some ways to take advantage of a bear market:

  1. Buy low: In a bear market, prices are generally lower than they were in a bull market, which means that investors can purchase assets at a discount. By investing in quality assets that have strong fundamentals and have been beaten down by the market, investors can potentially generate significant returns in the long run as the market recovers.
  2. Diversify: Diversification is always important, but it is especially crucial during a bear market. By spreading your investments across different asset classes and sectors, you can reduce your overall risk and potentially limit your losses.
  3. Focus on defensive sectors: During a bear market, some sectors tend to perform better than others. Defensive sectors such as healthcare, utilities, and consumer staples may hold up better during market downturns, and may be a good place to focus your investments.
  4. Keep a long-term perspective: It is easy to get caught up in the short-term movements of the market, but it is important to remember that investing is a long-term game. By keeping a long-term perspective and focusing on quality assets, you can potentially generate significant returns over time.
  5. Consider dollar-cost averaging: Dollar-cost averaging involves investing a fixed amount of money at regular intervals, regardless of market conditions. This strategy can help you take advantage of the lower prices during a bear market, and potentially generate significant returns over time.

It is important to remember that investing always carries risks, and there are no guarantees of success. However, by following these strategies, investors can potentially take advantage of a bear market and generate profits over the long term.

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Publicado en finanzas

Selling Everything (How To Invest In A Recession)

Publicado el por Marvin Gandis

The 2022 recession and what you need to know.

IS THERE GOING TO BE A RECESSION IN 2022?

Every time we had a spike in inflation above 5% – it was followed by a recession other than 1 time in the last 70 years.

WHAT IS A RECESSION?

A recession is technically defined as 6 months – or two back to back quarters of negative growth.

HOW DO WE MEASURE GROWTH?

Growth is measured by the GDP – the gross domestic product which you can also find here: https://fred.stlouisfed.org/series/GDP, you can see the most recent recession – started in Q1 of 2020, there was a dip in growth, and then a huge dip in GDP in Q2 of 2020 which officially made it a recession.

WILL THERE BE AN ACTUAL RECESSION?

Check this out: https://fred.stlouisfed.org/series/CP… going back as far as the 1950s, anytime we’ve had an inflation reading above 5%, we got a recession which are those grey columns in chart above.

WHAT IS INFLATION NOW?

Inflation is nearing 7% right now which means based on historical evidence, there’s a good chance we’ll get two consecutive quarters of negative GDP growth.

HOW DOES THE STOCK MARKET DO IN A RECESSION?

That’s the real question! We’ve had 30 recessions between 1869 and 2018. Now of those 30, 16 recessions have had a positive stock market return from when they started – to when they finished.

The positive stock market recessions lasted on average – 16 months and stocks ranged a return between 0.7% to 38.1% with an average return of 9.8% despite the fact that the GDP declined on average 3%.

HOW IS THAT POSSIBLE?

They found the correlation between recessions as measured by the GDP growth and the stock-market at nearly -0.05. So it’s almost 0 correlation between a recession and the stock market. The 14 recessions when the stock market went down, lasted 18 months on average, with an average return of -14.2%.

SHOULD I SELL ALL MY STOCKS?

In order to beat a buy-and-hold return of 9.0% over the last 150 years, an investor would have to successfully predict 77% of the market turns —and move in and out of stocks/cash as appropriate (Russell Investments: https://russellinvestments.com/us/blo…).

Even if you knew for sure when a recession was coming, the odds of losing or making money is about 50/50.

History says it’s nearly impossible to time the market.

Publicado en finanzas

📶 Inflation is coming, here’s what to do 🧐

Publicado el por Marvin Gandis

Most believe that throwing money at a problem usually creates other problems. But don’t tell the Federal Reserve that.

The Fed is doing its best to disprove that theory. At the behest of the Biden administration, they are stoking the engine of our economy to the tune of trillions of dollars. I think we’re about to about $6 trillion since Biden took office. But at this point, who’s counting?

As an investor, you know that this party, as fun as it is, can’t last.

And the wolf that’s on the other side of that door is inflation. It may not get here in 2021, although we see some tracks in the grass. Gas prices are on the rise. If you’ve been grocery shopping, you know that food prices are rising.

It’s not being a conspiracy wacko to simply take prudent steps to guard against this threat.

And one of the best ways to do that is still precious metals.

I know, I know. Bitcoin is supposed to be the new store of value. And you know what, it very well may be. But we haven’t seen what Bitcoin will do when it meets a bear. It’s only been around since 2009 and the market has been bullish for almost all of that.

But we know what gold does. And silver too. They go up. A lot.

And that’s why we’re sending you this special presentation on precious metal stocks for you to buy right now. Some of these stocks are flying under the radar of retail investors. But they’ve all got the attention in one form or another of institutional investors.

That gives them credibility. And like the simple black dress, they never go out of fashion.

Even if inflation doesn’t come this year, hedging your portfolio with precious metals is never a bad decision. So take a look now before these prices get out of hand.

View the “7 Precious Metals Stocks That Will Keep Your Portfolio On Trend.”

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Origen: Inflation is coming, here’s what to do