How taking advantage of people's fears can lead to profiting off of the market?
The S&P 500 fell 12% on Monday. This is it’s worst one day decline since the crash of October 19, 1987. The index has fallen over 29% in just 18 days. Risks are high and there are daily market drops of as much as 10%. So what is next? Well, the COVID-19 vaccine should be ready for emergencies in about 6 months. Expect to see the market calm from mass daily sell-offs. It is great to take advantage of stock market sell-offs as they create such a huge opportunity, but beware of the unknown stored for the future. This advice seems so easy on paper but can be hard to implement. At this point, everyone is scared, and we are too. As bad as the stock market has been in the past couple of weeks, it can get much worse. So be safe when you buy shares and do not go all in just yet. Understand that the coronavirus is still a box full of mysteries waiting to be opened in the upcoming months.
Design a plan to purchase a specific selection of stocks over a few weeks, watch what they do, and repeat. If you purchase dominant companies, you will be thanking yourself in the next year or two. The companies often referred to as “Blue Chips” are on high discount right now and are in need to be taken advantage of. Buying stock for the next 6 months would put you in a great position for the future ahead. In other words, buying into the market at such a time where it is breaking record lows may seem irrational at first, but over time could benefit you with a great payout.
March 17, 2020