I have personally lost a lot of money in the last two weeks. I’m sure you have too.
It feels awful, I know. It’s heavy out there… As I write, the S&P 500 is down 13% from its all-time high on February 19, and interest rates have fallen to record lows.
So you may be surprised to hear this… but I am extremely excited to buy…
No, I haven’t bought yet.
But I will personally be a big buyer very soon – when we start to see the beginning of a new uptrend.
Unless the next global financial crisis is upon us – which I don’t think is the case – then soon we will see the best buying opportunity in the stock market since Christmas 2018.
Investor sentiment is absolutely terrible out there. But here’s the thing: You want to buy assets when they’re hated…
Once U.S. real estate became incredibly hated in 2011, and investors lost faith completely, I started buying real estate heavily here in Florida.
It was the first time in my investing career that real estate was THAT hated. So I bought all I could – and then some. Since then, I’ve made incredible profits on it.
Today, stocks are incredibly hated. Investors have lost faith. Meanwhile, the economy (to this point) is doing well, interest rates are at record lows, and stocks are not expensive.
In my opinion, this will turn out to be the last great buying opportunity of the Melt Up.
As I said, I have lost a lot of money so far. I want to limit my own losses – and yours. So we will follow our trailing stops. We genuinely can’t know when the negative sentiment will change. It could be tomorrow. It could be a week from now… or even a month from now. We also can’t know the path the coronavirus will take.
I expect the extreme fear will fade away sooner rather than later. But as I mentioned earlier, I have not personally bought yet. I am waiting for more of a sustained uptrend. I am waiting for things to get “less bad.”
When that happens, I will likely load up on stocks… for the first time since the end of 2018.
Times are bad right now. But they won’t be bad forever. I believe we will have a fantastic buying opportunity, soon…
I look forward to guiding you through it. When the trend returns, we’ll be ready to put money to work.
Stay safe. Don’t stress too much. Follow your trailing stops to limit your downside risk. And consider being a big buyer sometime soon…
Good investing,
— Steve
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Source: Daily Wealth