When It’s Time to Buy, You Won’t Want to By Jeff Clark, Editor, Market Minute 2023 will be a year of opportunity… But there’s good news and bad news. The good news is we’ll have a chance to buy high-quality stocks at dirt-cheap prices. The bad news is the bear will take one more swipe at the stock market before we get to the good news. That will scare most folks. They’ll hit the sell button in a panic. But as you’ll see today, that’s exactly the time to step in and buy. Recommended Link | Crushing the retirement dreams of many… Is this the end of the road for America’s economy? More and more people are waking up to a world of pain… How do you feel, for example, when you fill your car with gas and the numbers on the pump climb higher and higher? Right now, Nomi Prins says we’re on the brink of a historic crisis – but not the kind of crisis most people expect. Understanding the details of this strange event could spell the difference between a long, relaxing (maybe even early) retirement… And years of broken dreams… frustration… and regret. |
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Recession Ahead Why do I think things will get worse before they get better? As a trader, I’m a charts guy. And here’s a monthly chart of the Treasury “yield curve”… This chart shows the difference – or “spread” – in yields on the 10-year Treasury note and the 3-month T-bill. Normally, the yield curve is positive. The further out in time a bond matures, the higher its yield will be. This rewards investors for the extra time risk. A negative yield curve is when short-term bills offer a higher yield than long-term notes. And it often happens right before a recession. The first three red arrows on the chart mark yield curve inversions right before recessions hit. They also happened right before big stock market falls. The #1 stock for 2023 When the yield curve reached its most negative levels, stocks were closer to their bull market highs than they were to their bear market lows. By the time the bear markets ended, in December 2002 and March 2009, the yield curve was well into positive territory. Same goes for the COVID-inspired plunge that bottomed in March 2020. If history is any judge, we’ll want to see the yield curve go positive before we get the all-clear on stocks. We’re Going on a Bargain Hunt Take another look at the chart above. The yield curve is deeper into negative territory now than at any time over the past 30 years. That tells us we’re still months away from the end of the bear market. But that’s not a bad thing… Bear markets are good. They correct the excesses that build up in the final stages of a bull market. That’s when too much money chases stock prices higher. This jams up valuations to nosebleed levels. Bear markets are painful for everyone. And they’re particularly painful for folks who are overly exposed, or even leveraged, to stocks. But they are also opportunities for bargain hunters who’ve kept some dry powder. There’s only one problem… When it’s time to buy, you won’t want to. Recommended Link | Investment Expert’s #1 stock for 2023 Investment expert Brad Thomas knows how to pick stocks. The strategy Brad Thomas uses aims to generate 15-20% annual returns over the long term. But some individual plays are up 122%, 124%, and 184%. And his model portfolio boasts dividend yields as high as 8.5%. He and his team delivered a near-perfect track record from March 2020 to September 2022. And now, he’s revealing his #1 stock for 2023. |
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Don’t Let This Opportunity Pass You By I’ve been trading professionally for more than 30 years. And I can tell you from experience, it’s not easy to buy stocks when they’ve been plummeting. It’s not just the falling prices that are scary. It’s also the negative headlines and the panic in the air. Think 2008 or the pandemic-induced crash in early 2020. At times like these, folks become paralyzed. So, they let rare opportunities to buy stocks on the cheap pass them by. I’m here to make sure you don’t do that in 2023. Instead, I want you to join me in having the courage to buy stocks when they go on sale. You don’t have to put large sums at risk. You can set aside a small amount each month. And don’t worry about trying to buy stocks at their absolute lows. Nobody does that consistently. But if you can buy quality companies at bargain prices, you’ll profit over time. I’m looking out for that opportunity sometime in the first half of this year. I’ll be in touch again when the time is right. Best regards and good trading, Jeff Clark Like what you’re reading? Send your thoughts to feedback@legacyresearch.com. IN CASE YOU MISSED IT… Market Wizard forecasts 5 years of famine Hi. Larry Benedict here with a new forecast. I believe we’re headed for a serious rough patch… I believe all the indexes will be flat or negative for a long time. We’ve had 10 years of plenty. Now we’re looking at five years of famine. I predicted the Fed would issue a series of rate hikes…. And that is what is going to cause this prolonged bear market. I think we’re about to see a repeat of the late ’70s and early ’80s. Inflation was rampant then, so the Fed issued a series of rate hikes to tamp it down. Naturally, that combination created wild volatility. It was very similar to what we’re seeing right now. I’ve lived through times like these… And my One Ticker Trader is perfect for what’s coming. I believe you could have several opportunities to see huge gains in very little time. To learn all about it… Watch my latest video right here. |
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