Welcome! In this free e-letter, I’ll show you where the big money is headed in the markets so you can follow it to profits. And we love to hear from our subscribers… Tell us what you like, what you hate, and how we can make Palm Beach Insider the best free e-letter on following Wall Street to profits right here. | This Is When It’ll Be Safe to Buy Stocks Again By Jason Bodner, editor, Palm Beach Insider Coronavirus fears are gripping the globe. There are over 80,000 confirmed cases and at least 2,700 deaths. And with the outbreak spreading in Italy and the rest of Europe, investors are panicking. It’s showing up in the CBOE Volatility Index (VIX) – the market’s so-called “fear gauge.” Since this time last week, the VIX has spiked from just below 14.3 to nearly 28 – a major move for the index in just a few days… This increased fear has sent the markets lower, too. In fact, on Monday and Tuesday, the market had its worst two-day sell-off since 2015. It also means investors are flooding to safe havens amid the volatility. Gold prices surged to seven-year highs, at nearly $1,700. And as I showed you on Monday, the big money is flooding into the more stable, higher-yielding real estate sector. But despite the negative news, I’m still bullish. In fact, we saw an even bigger drawdown in December 2018, when the market crashed nearly 20%… only to rally 33% since then. So this market pressure is normal and healthy after the climb higher since the start of the year. And today, I’ll show you how this short-term sell-off is setting us up to profit while others get shaken out… Following the Market’s Waves As you know, I created an “unbeatable” stock-picking system to track the big money’s buying movements. You see, only 4% of stocks have accounted for nearly all the profits of the market each year for the past 100 years. And my system spots these outliers in order to follow the big money to profits. These are companies like Facebook, Amazon, Netflix, and Google. Their stocks can return 10x, 100x, or even 1,000x your money. Using my experience from nearly two decades at prestigious Wall Street firms – regularly trading more than $1 billion worth of stock for major clients – I made sure my system is highly accurate, comprehensive, and effective. But here’s the thing: My system doesn’t just look at individual stocks. It can track big-money buying and selling in the broad market, too. Over time, this buying and selling happens in waves. Just take a look at the chart below… And right now, my system is saying that we’re in Phase 3… where selling is starting to grow. But as a result, this pullback is handing us a buying opportunity… Picking Up Outliers on Sale Back in January, I told readers to book some gains and have dry powder ready for the inevitable sell-off. If you took my advice, congratulations. Now that it’s here, you’ve avoided the 8% drop in the markets. And as you can see below, my system’s index of big-money buying and selling is indicating that selling is taking over… When the ratio is at 80% (see the red line above) or more, it means buyers are in control and markets are overbought. And when it dips to 25% (the green line) or lower, sellers have taken the reins, leading the markets into oversold territory. Although we’re not near oversold levels yet, the index is trending lower – which means lower prices are ahead. So for now, expect more market zigzags. But let’s embrace this pullback and continue to be patient. When the buying cycle hits Phase 4 (see second chart above), we’ll pounce. If you’re looking for safe, high yields in this volatile environment, consider putting some money into the real estate sector through the iShares U.S. Real Estate ETF (IYR) I mentioned on Monday. Just remember, this phase will pass. And we’ll be able to buy high-quality outlier stocks at discounts soon. Stay bullish! Jason Bodner Editor, Palm Beach Insider P.S. My stock-picking system recently pinpointed SolarEdge Technologies (SEDG) as an outlier for my Palm Beach Trader subscribers. And just last week, we took 111% gains off the table as dry powder to buy our next triple-digit winners. As I mentioned, this market pullback is handing us a chance to buy these great companies at a discount. And my system can help you spot them, too – just like it did with SEDG. To find out how it spots big-money investors piling into the best stocks – and how you can ride them to profits just like my subscribers – check it out right here. Like what you’re reading? Send us your thoughts by clicking here. |
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