How You Should Handle the Market’s “Sucker Punch”

Back in September 1987, Mike Tyson was still just an up-and-coming young prizefighter… one with an undefeated 31-0 record.

At just 21 years old, it was already clear that Tyson was one of the greatest brawlers ever to set foot in the ring. But skeptics still doubted Iron Mike’s ability to strategize.

The media pressed him about his next opponent, Tyrell Biggs, in particular.

Biggs was a super heavyweight Olympic gold medalist. A master tactician in the ring.

Reporters asked Tyson if he was worried about Biggs’ “fight plan.” Tyson responded with the now-legendary quote: “Everybody has a plan until they get hit.”

Well, just yesterday, the stock market took a Tyson-sized hit.

Now it’s time to see whether investors have what it takes to remember their plan…

A Gut Check for Investors to Start the New Year

Since mid-February, we’ve seen a broad market sell-off that’s slammed some of the market’s most popular stocks.

The Top Magnificent Seven tech stocks, like Nvidia (NVDA), Microsoft (MSFT) and Tesla (TSLA), have already been struggling since the beginning of the year. Then, over the last two weeks, some of the best next-generation investments have pulled back substantially.

Telehealth breakout Hims & Hers Health (HIMS) is down over 40% since February 19, now sitting at $40 per share after reaching an all-time high at over $72.

Yet, at the same time, the broader S&P index has only dipped a few percent.

And that’s the key distinction here…

Because what we’re seeing here is simply a “reversion to mean” as investors work to recalibrate for a new year, a new presidential administration, and a whole new economic reality.

Thanks to the raw power of the AI mega trend and the election of Donald Trump last November, markets have been on an absolute heater for years now. Investors inevitably need to take a breath, take a break, and take some gains.

That’s where we see mean reversion as prices fall back down to their averages — leading to larger gains for the biggest performers, while the index only falls slightly overall.

If investors are worried that they paid too much for a stock (or are worried that share prices could fall further), then these corrections can lead to panic-selling.

Buffett’s investing partner Charlie Munger, may he rest in peace, was particularly fixated on a stock’s 200-day moving average. He felt like it was the perfect tool for filtering out short-term enthusiasm and panic.

So, if we look once again at HIMS, for example, we see a 200-day moving average at $24. The stock is still well above its moving average at $40+ per share, which indicates strong, long-term upward momentum that’s likely to blast through any short-term correction.

And if we zoom further out, HIMS just looks stronger and stronger…

For example, if you invested in HIMS when I recommended it to paid-up members of 10X Stocks, you’d currently be sitting on a 487% gain in just over two years.

In that context, we can see the stock’s recent pullback for what it really is.

Not a cause for concern or a major crash … but a massive, massive buying opportunity…

Blood in the Streets

Since the introduction of ChatGPT in November of 2022, investing has been on “easy mode” — with some of the market’s largest and most popular stocks racking in massive gains based on little more than AI marketing promises.

Since the start of 2025, we’ve seen a clear reversal of that trend.

Investors are no longer “following the herd” into NVDA and MSFT, and the advantage is gradually returning to those investors who know how to identify pivotal opportunities and the massive mega trends that will power them.

Some stocks, like HIMS, will stage a massive rebound in the year ahead … while others will continue to steadily decline in price. Knowing one from the other will be the key to investing success in the year ahead.

To good profits,