Bear markets are depressing.
I don’t mean that they take the air out of the room. Bear markets make it hard to get out of bed in the morning.
But here’s the thing: While down markets are miserable to live through, they create the conditions for incredible rebound trades.
I’m not talking about making a quick 20% to 30%. I’m talking about 1,000% returns or even more: literally making 10X your money.
Not every trade is a 10-bagger, of course. Not even George Soros or Warren Buffett could pull that off.
But if you make even one or two trades like that over your investing career, you can permanently change the trajectory and timing of your retirement.
It just comes down to identifying the right opportunities. (Click here to see how we’re working on that!)
Want to see what kinds of gains are possible?
Look no further than Elon Musk’s Tesla Inc. (Nasdaq: TSLA).
TSLA’s Crash Triggered a 3,000% Stock Resurgence
Back in 2018, we had a near-bear market. The S&P 500 dropped 19.8% in the fourth quarter, just a hair’s breadth away from the 20% threshold that makes it “official.”
(Technically, it’s the same story today. The S&P 500 isn’t in a bear market, having only fallen 16%. The Nasdaq on the other hand is firmly in bear territory. It’s down around 27% from its 52-week high.)
Tesla took its share of hits. TSLA dropped 27% from its third-quarter highs… And then it dropped even harder in the first half of 2019.
By the time TSLA bottomed out, it was down by more than half from its previous all-time highs.
You might have thought that was game over for Tesla. But then, after bottoming at $35.79 in May 2019, TSLA shares went on to soar to over $1,229 in value by late 2021, capping off a monster 3,334% move!
Any investor that timed that would have make 33 times their money … on Tesla, which was already a large and established stock.
Why Did TSLA Soar?
Now, not every stock enjoys that kind of rally coming out of a correction or bear market. It takes some stocks years to recover losses, and others never recover them at all.
Tesla was the beneficiary of a few trends within the stock market:
- It was (and still is) the biggest name in electric vehicles (EVs). It was still the only electric automaker producing vehicles at this scale, so EV investors piled in when the stock dropped.
- Investors have focused on tech for years now, and TSLA is one of the biggest tech names out there.
Tesla certainly isn’t alone. And it doesn’t take a huge name to generate massive stock growth like what TSLA did.
1,000% Gains Aren’t Limited to Big Names
My colleague Matt Clark showed you two examples of 1,000% gains in companies without huge name recognition: Devon Energy Corp. (NYSE: DVN) and The Mosaic Co. (Nasdaq: MOS). Both were also solid 10-baggers, delivering returns of over 1,000% following the coronacrash.
And there will be opportunities for more massive gains like those soon.
I can’t tell for sure when this correction ends or how deep it goes. But I can tell you that I, along with the rest of the Money & Markets team, am wildly excited about what happens next.
My good friend Adam O’Dell is working on a strategy to identify the next Tesla, Devon or Mosaic. He wants to help you invest in the next generation of 1,000% stock winners.
Click here to sign up for Adam’s upcoming presentation. It’s totally free to attend.
You (and your portfolio) won’t regret it.
To safe profits,
Charles Sizemore, Co-Editor, Green Zone Fortunes
Charles Sizemore is the co-editor of Green Zone Fortunes and specializes in income and retirement topics. He is also a frequent guest on CNBC, Bloomberg and Fox Business.
