Best Investments During Stock Market Crash

Best Investments During Stock Market Crash

Best Investments During Stock Market Crash

Experts always focus on the crash factor and never on the opportunity factor. They will go on and on about how bad the next upcoming crash will be but they will never ever state that every crash has spawned the next babby bull.

This is a topic that financial writers should cover in more depth, but it also needs to be covered accurately.  From the very beginning, individuals have been trained to view crashes as disasters, and in doing so, they miss an opportunity of a lifetime. One has to wonder why so many experts almost purposely go out of their way to proclaim the next crash will mark the end of everything.

History is not on their side and the average person having failed to examine history is none the wiser. When a lot of noise is made one has to understand that it is being done to redirect one’s attention; the masses always fall for this ploy. Stock market crashes are perfect examples of misdirection; the crowd is directed to fixate on the fear factor and not the opportunity factor. The dumb money always buys close to the top and sells close to the bottom, and the smart money always does the opposite.

Stock market crashes represent opportunity

Chart was provided courtesy of

Best Investments During Stock Market Crash: Buy Stocks that Held Up The Best

One of the best ways to determine optimal entry and exit points is to pay close attention to the mass sentiment. When the masses are joyous, then it is usually time to exit the markets and vice versa.

A very strong correction is going to hit this market sooner or later, and our goal is to use the trend indicator to get out close to the top. We are not going to bother trying to get out at the exact top; the goal is to get out when the trend indicator starts to flash warning signals, and sentiment levels start to rise.  The best lesson you could impart to your kids and grandkids is to teach them view stock market crashes through a bullish lens. This lesson is probably more valuable than anything they could ever hope to gain from the public education system.

The latest reading from our Proprietary Anxiety Gauge states the Market is not ready to Crash

Crowd is still too anxious for the Stock Market to Crash

Best Investments During Stock Market Crash. First Focus on the Opportunity factor

Let’s look at why stock market crashes should be embraced

Before we got off the Gold Standard (1933), it would have been quite risky to view back-breaking corrections as buying opportunities.  However, if you look at the chart above and you take a long-term view, you can see that every back-breaking correction was a mouth-watering opportunity. This will continue to hold true for the foreseeable future.  However, we all know that 90% or more of individuals will forget this once the markets start to break down and instead they will utter these words “it’s different this time”.

It is always different because fear has a way of making something look worse than it is; in reality, nothing has changed, the masses leap without looking, the smart money waits for them to stampede, and when they have sold everything, they swoop in and purchase top companies for next to nothing. The masses remain shell-shocked for years as the markets trend higher, then all of a sudden the memory of the last beating fades away and the process repeats itself again and again. This is what’s taking place now and that is why this stock market Bull continues to trend higher. The masses have still not embraced it but they are slowly warming up to it.

Tactical Investor Update Aug 2019

Market Sentiment is far from bullish:

Take a look at the gauges below and it immediately becomes obvious that the only ones that are scared are the ones that historically fare the worst. Anyone with the mass mindset falls under that category. In other words, lemmings will always be lemmings and their only function when it comes to the markets is to be used as cannon fodder.



The long term outlook for the Dow and the overall markets remain unchanged.  On the monthly charts, the Dow is still trading in the oversold ranges, so despite the gnashing of teeth, this current pullback has to be viewed through a bullish lens. The only area of focus, therefore, should be directed at finding the best stocks to get into as stocks are not created equal. For example, value investing is almost dead as hot money is chasing momentum-based stocks and if you get into a momentum based stock at the wrong time, despite strong fundamentals you could end up being on the receiving end of the stick.

Other Articles of Interest

Buy When the Blood in the Streets is flowing Freely  (Sept 13)

Dow 21K Predicted In August 2016 (Sept  9)

Minimum wage hike ignores impact of AI; companies will opt for Robots  (Sept 8)

Should You Be Worried About Inflation Rate In 2017? (Sept 6)

Wage Deflation here to stay: Robots Replacing Workers (Sept 5)

Price of Copper Signalling Inflation or higher Stock Market Prices (Sept 4)

Rate of Inflation not an issue according to Bond Market (Sept 2)

Worst Stock Market Crash of our lifetime; is this a possibility? (Aug 23)

Did the Fed Screw up in raising rates; is inflation even an issue  (Aug 10)

Electric Car Threat To Big Oil Wildly Overstated? (July 28)

1987 stock market crash: could it happen again? (July 13)

Dow Could Trade to 30K But not before This Happens  (July 11)

Fake news & Weak Economy Can’t Stop Stock Market Bull  (July 6)

Crazy Bull Market Still Marching Strong despite interest rate hikes (June 18)