Best stocks to invest in right now
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.
The chart was provided courtesy of http://www.macrotrends.net
Best stocks to invest in right now: 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
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.
Best Stocks To Invest In Right Now: March 2020 Update
Before you decide what the best stocks to invest right now are, you need to determine if its the right time to get into the markets. Fortunately, the best time to open long positions is when the masses are panicking and currently the coronavirus pandemic hysteria provides long term investors with an ideal opportunity to open up great positions a discount price.
According to the Wall Street Journal, there is a record 3.4 trillion in cash sitting on the sidelines. This money will eventually find its way into the market and push markets higher, but the more important factor to pay attention to is that the crowd is still far from bullish. Looking at the sentiment below; the only consistency we can find is that there is no consistency. Bullish sentiment has not remained above 60% for 3 weeks in a row for years on end. In fact, we can’t recall seeing the sentiment above 60% for three weeks in a row since the inception of this bull market and that is a very telling development indeed.
This sentiment data was tabulated before Friday’s sell-off; therefore it appears that the crowd was already spooked before Friday’s sell-off further cementing the view that a sharp pullback has to be viewed as a blessing in disguise. Market Update Jan 31, 2020
If you compare the current sentiment data to that in the last update, bearish readings remain unchanged but bullish readings rose a bit. Now does that make any sense; the crowd panicked and then turned bullish and the markets surged to new highs and the bears still dominate. This type of action clearly pinpoints that the main dominant theme is that the masses are still uncertain.
Having said, that the Coronavirus issue is going to be blown out of all proportions and it will be made to look like the mother of all pandemics. In fact, we are seeing individuals that are not qualified to make projections on the rate this virus will spread, stating that millions upon millions will be affected. This could be true, but most of the experts making these proclamations have no background in biology or virology; their main qualification is that they have a PhD in BS. We feel this is a test by the big players that control most of the media outlets to see how far the truth can be stretched and so far it’s working marvellously. Now people are being checked with thermometers to see if their temp is above normal and an above-normal temperature has now become the litmus test for the Coronavirus; voodoo science at its best. This is one of the most retarded medical tests of all time, but no one seems to notice; a real-life depiction of “Pluto’s Allegory of the cave”.
Other Articles of Interest
Dow 21K Predicted In August 2016 (Sept 9)