One of my favorite Warren Buffett quotes is: “In investing, there are no called strikes.”
If you’re a baseball fan like me, you know what the Oracle of Omaha meant.
If the pitcher throws the ball right down the pipe and you don’t swing, it’s a strike. That puts pressure on the batter to swing.
But as investors, we don’t need to swing. We can let 1,000 pitches go by without any penalty.
And we know there will always be more.
Another sports analogy is appropriate here too.
When I was an aspiring baseball player in the late ‘80s and early ‘90s, one of my heroes was the great Bo Jackson.
Jackson was the only athlete in history to be an all-star in both professional baseball and professional football.
He didn’t just play two professional sports … he excelled in both at the highest levels!
2 Bear Market Rules to Follow
Here’s how Buffett’s baseball analogy and Bo Jackson are relevant today.
We’re in a bear market. This is a treacherous time to be investing, folks.
But we need to remember two rules.
Rule No. 1: You should feel comfortable letting a lot of pitches whiz by.
You can choose the ones you swing at. And with certain sectors and stocks trading at bargain-basement prices, you can hit a few pitches over the fence.
Rule No. 2: Diversify your portfolio.
If we return to the Bo Jackson analogy, it’s key that we look for opportunities in different areas.
Focusing on one corner of the market is often a mistake in the best of times. It’s downright dangerous in a bear market, when skittish investors will punish entire sectors for arbitrary reasons.
Let’s get specific.
Renewable Energy Mega Trend
You might know by now that my team and I are uber-bullish on renewable energy. We think it’s one of the most massive multi-decade mega trends in our lifetimes.
We’ve reached a point where solar and wind energy are competitive with even the cheapest traditional carbon-based fuels, coal and natural gas.
And environmental concerns aside, the war in Ukraine has reminded our leaders that depending on foreign imported oil and gas is dangerous. That gives us a newfound sense of urgency to produce homegrown renewable power … and not just in the United States and Europe.
China is the epicenter of renewable energy investment, and I’ve found an excellent opportunity there for members of my premium stock research service, Green Zone Fortunes.
In my latest recommendation — due out early next week — I tell them why I think we should own shares of a Chinese company that supplies the solar industry with a critical component.
The stock is up 75% this year already, and I expect a lot more where that came from. (If you aren’t a Green Zone Fortunes member yet, what are you waiting for? Click here now to watch my “Infinite Energy” presentation — and to get first dibs on that brand-new green energy recommendation as soon as we release it.)
Traditional Oil & Gas Opportunities
My high conviction in renewable energy hasn’t stopped me from looking for opportunities in the traditional oil and gas sector as well.
I was bullish on energy stocks as far back as 2020, when most investors had flocked to tech stocks, ignoring the obvious value in traditional energy.
I still think traditional energy stocks are a smart investment today.
But it pays to be selective here and to maintain discipline. Heavyweights in the sector have been trending lower over the past month, so this might not be the ideal time to initiate a new position.
We have a bigger takeaway here…
Bottom line: Discipline is always important when investing, but it’s crucial to surviving bear markets.
Be selective in the investments you choose to make and be willing to diversify your portfolio to spread your bets.
My team and I put every stock we recommend to our Green Zone Fortunes members through a rigorous test. It needs to meet three key qualities on our checklist, including a “Strong Bullish” rating on my proprietary system.
It doesn’t get much more selective than that, folks!
To good profits,
Chief Investment Strategist