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Where’s the Bottom?

Written by Jason Williams
Posted May 16, 2022

These articles are always the toughest to write. Especially when markets are like they’ve been.

You see, in order to make sure it’s ready for you today, I’m writing it last week, on Friday.

And as I’m writing it, markets are going through a ridiculous rebound after selling off for nearly two weeks.

I looked at my watch lists this morning, and across nearly a hundred stocks, I’m looking at an average double-digit gain.

That’s not normal and it’s not what happens in a healthy market.

But after so much selling, it’s pretty common to see buyers step in. Sometimes it signifies an actual bottom in the market.

Other times it’s just a “relief rally.” Stuff got sold off so hard that investors assume it now must be valuable.

So they go in buying with abandon and send shares that tanked 20% yesterday up 17% today.

But how do you tell if it’s an actual bottom or just a relief rally or dead-cat bounce?

Well, if I could answer that question, I’d be the richest person in the world instead of Elon Musk or Jeff Bezos (whoever’s stock has fallen the least recently).

And I might be one of the only analysts out here willing to admit that.

But nobody can actually time the market. And if they tell you they can, they’re either lying or crazy.

Everyone gets lucky here and there. But nobody has an actual crystal ball that predicts the future with 100% accuracy.

And that’s part of the reason this article is even harder to write than they usually are. The market’s up while I’m writing, but by the time you’re reading, it might be tanking again.

So then the question shouldn’t be “When is the bottom coming?” but “When should you be a buyer and when should you be a seller?”

And I’ll tell you straight up: Now is NOT a time to be a seller!

Sellers in a market like this are forced to take what they can get. And buyers know that.

So why would you buy a shirt at a 25% discount today if you can buy it at a 50% discount tomorrow.

In a market like this, buyers step out of the way so that sellers can trip over themselves selling in a panic.

And as my colleague Alex Koyfman noted last week, “Successful investors create upside potential by buying from panicking, unsuccessful investors.”

Don’t be an unsuccessful investor. Be a successful one.

Be the person helping those sellers out. Help them unload their shares at a massive discount.

They’ll love you for it and give you better and better deals with every trade down the ladder.

And sure, you’ll be feeling some pain in the short term. Stocks are down, but they can certainly go lower still.

But in the long run, you’ll be very pleased with yourself for being bold in the face of adversity, for remaining calm while everyone else panicked, and for sticking to your guns while the markets scrambled for cover.

It’s times like these when disciplined investors make the decisions that create generational wealth and family legacies.

Don’t miss this boat because you’re scared about what could go wrong.

Just think about everything that could go right and take this opportunity to set yourself and your family up.

Buy. Be cautious about it, but be a buyer. Buy solid companies with businesses that aren’t going away.

Buy those bellwether stocks that are getting thrown out with the speculative trades.

Invest in things that keep the economy moving. Invest in companies that own stuff and make things.

Most importantly, don’t panic. Don’t sell it all. And don’t bury your head in the sand.

Make a plan. Stick to it. Be bold when the market is fearful. Fortune will favor you if you are.

And keep your eyes out for my emails and articles.

There are a lot of great deals out there, and I’ll be bringing some your way in the coming weeks.

To your wealth,

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Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; the editor of Alpha Profit Machine, an algorithmic trading service designed specifically for retail investors; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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