If You Sit Out This New Bull Market, You’ll Feel Snake-Bit
Bill Haast was a renowned snake handler and scientist. He led an extraordinary life – one dedicated to studying and working with poisonous snakes.
And he was famous for being fearless.
Bill handled the world’s deadliest snakes… and was bitten 172 times. He not only survived those bites (which were recognized by the Guinness Book of World Records). He lived to the age of 100!
This was no accident. Haast inoculated himself with small amounts of venom over prolonged periods of time. And he built up a resistance to the toxins.
If he had followed the old adage “once bitten, twice shy” – which applied, quite literally, in his case – Bill would have quit after the first bite, never pursued his passion, and never helped science make great strides in developing antivenom.
Handling snakes is definitely not a passion of mine. But making money in stocks sure is.
We all know that stocks can inflict painful “bites” from time to time… like most of 2022.
But, like Haast, we can choose how we react to those bites.
And, also like Haast, that reaction will determine whether we achieve greatness (wealth), or whether we stay where we are to avoid getting bitten again.
I’m sharing this story at this particular moment for an important reason.
The biggest risk investors like us face right now isn’t inflation. It isn’t the Federal Reserve. It isn’t even recession. Though that’s what we typically hear about all of the time.
The biggest risk is missing out. Of being so afraid of “bites” that we bail out of stocks and get left behind.
It’s a real risk.
And it’s why we don’t want to succumb to the “once bitten, twice shy” mindset.
You know what I mean: If something doesn’t work out the first time, don’t do it again. Or be hyper-cautious if you do.
But walking away from stocks – or freezing in place, waiting for the right moment to get back in – isn’t the answer.
The Bull Is Already Snorting
Most investors got hammered in 2022. Many sold their stocks, which intuitively makes sense.
Protect what’s left and live to fight another day.
It’s that “fighting another day” part that’s difficult for many investors – who don’t get back into the ring.
We see that right now with a lot of investors continue sitting on a lot of cash. Record amounts, in fact. Money market funds are at an all-time high of $5.2 trillion.
But regret seeps in when folks realize how much stocks have rallied, and how much they’ve missed out on.
Then indecision sets in – as they get caught wondering if they should wait for another pullback, or if they are going to miss out on even more gains.
After all, the broad S&P 500 Index has racked up two years’ worth of gains just since last October… meaning it’s an “official” bull market.
Dig down into specific sectors and the numbers are downright stunning…
- PHLX Semiconductor Sector: 60.3%
- S&P 500 Information Technology Sector: 47.5%
- S&P 500 Communications Services Sector: 33.8%
That’s some serious gains, and you can see why regret afflicts those who have stayed on the sidelines.
This regret invariably turns to FOMO, or “fear of missing out,” and that’s when things can get really hot for stocks.
Which is great for those who invested before everyone else jumped on the bandwagon.
Stay With the Best
I still expect the usual summer volatility on lower trading volume and as we continue to work through inflation, interest rates, and lingering fears of a recession – which my data continues to show is highly unlikely at this point.
But a new bull market is here at the moment, and investors who continue to be “twice shy” risk missing more gains and prolonging their financial recovery.
If you’re nervous about getting into stocks right now, it might help to consider only the absolute best stocks in the market – the ones with the highest likelihood of earning you profits.
I built my whole Quantum Edge system to find those exact stocks with the characteristics that indicate higher prices ahead. Our data shows that we succeed about 70% of the time.
On any given day, fewer than 1% of stocks make it through my system to even be considered a possible recommendation for my Quantum Edge readers.
These are shares of companies that have superior fundamentals… the best in the business. You can’t make money consistently in weak companies.
They also have strong technicals. They are stocks that are already on the move, which is better than trying to predict a bottom or a turnaround.
And here’s the kicker: Big Money is buying these stocks. I’m talking the really big money – like millions of shares worth millions of dollars.
I cut my teeth in this business facilitating these Big Money trades. I was the middleman that matched up the buyers and sellers, and I learned firsthand how to detect unusually large institutional buying, down to the specific stock.
That’s the trifecta of high-probability investing right there: super strong fundamentals and technicals combined with Big Money inflows. Find stocks with those factors, and you have a good chance of making good money.
Putting the odds squarely in your favor should help overcome the fears of getting bitten again. That way, you can get back to making money in stocks that are already on the move.
Talk soon,
Jason Bodner
Editor, Jason Bodner’s Power Trends
P.S. My Quantum Edge system analyzes more than 6,000 stocks every single trading day to home in on that 1% or less that meet our criteria that indicate higher prices are likely.
This is a high-tech effort, made possible by computing power and artificial-intelligence algorithms that make possible that kind of analysis on that many stocks.
Technology is allowing people to accomplish phenomenal results with a fraction of the effort, in a fraction of the time. Investors today have an incredible chance to leverage technology to change their life for the better… to make more money than they ever thought possible.
You can learn more here about my proven system, and also how to get instant access to all of my Quantum Edge Trader recommendations… including our brand new buy that rates high in all of the important categories.