Today, I’m taking a different approach to Stock Power Daily.
I want to share something that’s weighed heavily on my mind over the last few months: Making 2023 one of the most profitable years for you.
That’s not hyperbole … it’s something our entire team thinks about every day.
Now there’s no getting away from the fact that last year was well … rough … for investors.
Bond yields … also falling.
It wasn’t pleasant, and every investor on Wall Street or Main Street experienced it. We were right along with you.
The biggest unknown here isn’t why the market fell last year … but how long will the bear market last?
I’m reminded of concepts we’ve talked about before … one in particular that I’ll get to in a minute.
Markets Don’t Move in Straight Lines
My years as a financial research analyst have taught me one undeniable fact: Stocks and markets don’t move in straight lines.
There are hills and valleys.
Here’s what I mean:
This is a chart of the S&P 500 over the last year.
While the move from point A to point B was down, you’ll notice there are days … and even weeks … when we saw bear market rallies.
These uptrends handed some investors phenomenal gains … if they knew how to trade them.
This leads me to…
Stubborn Investors Pay the Price
I remember something Adam O’Dell wrote to his Green Zone Fortunes subscribers in July last year.
He was telling readers about adjusting stop-losses and introduced the concept of Adaptive Investing™:
In short, it means we change our actions … as the market changes.
Stubbornness is a slippery slope: The more you dig your heels in, the worse your situation becomes if your actions don’t match reality.
Adapting is the opposite of stubbornness!
There’s a lot of truth to those words.
Take for example the 60/40 portfolio — where you invest 60% of your portfolio in stocks and the other 40% in bonds.
Vanguard says that portfolios lost 16% in 2022 … the second-worst year since 1976.
Things aren’t looking much better to start 2023. Inflation is still at 40-year highs, the Federal Reserve hasn’t signaled it’s ready to start cutting interest rates again and companies are taking drastic measures to stay profitable.
Does this mean you should abandon your 60/40 portfolio? That’s something you have to decide.
But if things aren’t looking any better for 2023 and you want to grow your portfolio, it‘s time to adapt.
Remember, those uptrends in the market last year gave some investors strong gains, but only if they knew how to trade them.
Well, Adam has the right formula and he’s just shared it in a special call with me. (Click here to check out the rebroadcast of our call.)
A little insider tip: This strategy is a unique way to capitalize on market volatility and give you the chance to target what’s working within the current market — because investors are making money out there.
You definitely don’t want to miss what Adam has to say.
Practice Adaptive Investing™ a Strong Bullish Stock in a Unique Industry
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify!
And Adaptive Investing™ is at the core of that system.
And sometimes it finds stocks within industries that you may not even know existed.
Stay tuned for the next issue, where I’ll share all the details on a company that serves as a unique play on the aerospace boom.
Matt Clark, CMSA®
Research Analyst, Money & Markets