Look, I know the market feels a bit scary out there.
The Nasdaq 100 has entered bear market territory. And the S&P 500 is ready to join it soon.
But this is not the time to panic. This is actually the time to buy.
We’ve seen this before. And I’m not talking about the 2020 COVID crash.
I’m talking about 2018.
See, in 2017, stocks produced about a 20% return with almost no volatility. Everybody thought the party was going great.
And then late 2018 hit. Stock prices peaked in late September 2018, and by Christmas Eve we were in a bear market for the S&P 500, the Nasdaq 100 and even the small-cap Russell 2000.
2018’s Quick Collapse
We saw a greater than 20% drop in those last three months of 2018!
It felt the same as today. It felt scary, like this long bull market was ending.
But it was actually not the time to panic — it was the time to buy.
2018’s Drop Created Incredible Opportunity
Case in point: If you had bought an index fund of all 500 stocks in the S&P 500 in December 2018, you’d be up 73% now. And that’s even after this most recent market drop.
Likewise, if you’d bought the Nasdaq 100, which is mostly technology stocks, in December 2018, you would’ve doubled your money by now. And again, that’s after the most recent drop.
Bottom line: Bear markets are not the time to panic. Bear markets are the time to buy.
Don’t Buy the Whole Bear Market — Look for 4 Factors
But here’s the thing: You don’t have to buy the whole market with an index fund. You can buy individual stocks.
And you don’t have to buy falling prices.
You’ve probably heard the phrase: “Don’t catch a falling knife or you’ll get cut.”
That’s what I bake into my system that I’ve used for more than 10 years now.
Here are the four keys to finding stocks with potential for 10X returns:
Just by buying a stock that meets these four factors — I’m not talking about options or using leverage — individual stock gains of 1,000% or more are not only possible, but we’re absolutely capable of finding them.
And there are a lot more out there than you might realize.
LSCC Rocketed out of the 2018 Bear Market
I want to give you one example of these 1,000% winners using a stock that my system identified following 2018’s bear market: Lattice Semiconductor Corp. (Nasdaq: LSCC).
Lattice Semiconductor is currently worth about $6.6 billion. But it wasn’t always this valuable. Back in early 2019, when my system identified LSCC, it was just a $1 billion company. It was a small-cap stock.
Lattice and the Semiconductor Mega Trend
Lattice was founded in 1983. It’s based in Hillsboro, Oregon. It specializes in semiconductors for artificial intelligence (AI), cloud computing and video conferencing applications.
If you’ve watched the local news, you know that there is a semiconductor shortage right now. Lattice is pumping them out in Oregon for a number of mega trend end users:
These are all huge mega trends that Lattice is supplying semiconductors for.
LSCC’s Performance
Looking at the recent market, Lattice has grown its earnings per share. It’s doubled those figures by 100% over the last 12 months.
But again, the biggest gains came to investors that got into this stock before the most recent results.
My system looks for stocks that are in uptrends and stocks that have significant market-beating momentum. My system gave a buy signal on Lattice Semiconductor on February 5, 2019 at the price of $7.81 per share.
Now mind you, this was after the stock had fallen 36% during that late-2018 bear market.
But it’s worth repeating: That late-2018 bear market was not a time to panic — it was a time to buy.
My system identified this stock just a couple of months after the stock actually went into a bear market.
By mid-November 2021, LSCC had shot up to $85.26 at its peak.
That’s a 10.9X return, or 1,090%, on LSCC in a short amount of time.
Your Best Bear Market Approach
So again, the take-home message is: You don’t have to be scared of a bear market. These down markets aren’t the time to panic — they’re time to buy.
You also don’t have to buy falling prices. You don’t have to step in and buy on the worst day of the week when the stock is hitting new lows. Instead, use my system and wait for two factors:
- Wait for an uptrend to develop.
- Wait for market-beating momentum to return to that specific stock.
So really, 10X winners or more, that’s what my system is specifically designed to identify. And often we find these 10X winners in smaller, up-and-coming companies that are poised to be dominant players in massive multi-decade mega trends.
I’ve been using this system for over 10 years now.
And now I’ve perfected it to help us find stocks with the potential to hit 1,000% gains coming out of this bear market in a year. That means turning a $10,000 investment into $100,000 in just 12 months.
This bear market environment will create incredible opportunities to grow your wealth quickly using stocks within powerful multi-decade mega trends.
And we’re putting the finishing touches on a presentation showing you how to 10X your investments as stocks rally off their lows.
Click here to sign up for my upcoming presentation that airs on June 9. It’s free to attend!
You don’t want to miss it.
To good profits,
Adam O’Dell
Chief Investment Strategist
