«Are you planting?»
Traders,
The stock market is the only place where people flee bargains. Rather than cheering the opportunity to acquire shares of the world’s greatest companies 30% to 50% off the highs, investors succumb to their fight or flight instinct and abandon ship.
It’s only in hindsight that buying during bear markets seems wise. In the moment, it’s terrifying. Take now, for instance. The S&P 500 is headed for a retest of its June low. That places it nearly 25% off the highs. Meanwhile, the Nasdaq is 33% off the peak, and the Russell 2000 is down 32%. Do you think the world’s great companies have permanently lost one-third of their value?
I assure you they have not. Once inflation is good and dead, we will see the mother of all rallies as investors realize companies have not indeed been irrevocably impaired.
These are fire sale prices you only see once to twice a decade. This is your friendly reminder to take advantage. Now is the time for long-term investors to sow seeds for future harvest.
Video Of The Day: Gino’s Gems – What are VIX Signals #tradinghacks
Coach Gino explains what #VIX signals are in this Gino’s Gems. #thinkorswim
Chart of the Day: S&P 500 Retest ($SPY)
A retest of the June low appears inevitable. Will we undercut it? Or will bulls finally stage a rescue operation?
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