Do Matt McCall one favor and turn off your TV. He’s sick of the headlines comparing the coronavirus from China to the 2008 financial crisis and even the Islamic State group. In this week’s episode of “Moneyline” he’s hear to calm investors and remind them that he’s on their side. CNBC and Fox Business anchors aren’t.
Last week stocks took a tumble, ending Friday down about 13%. But that’s just in the correction zone — firmly in the 10%-20% window. Remember, a bear market is specifically a drop of more than 20%. And corrections typically happen every 13 months, which lines up perfectly with the last correction from December 2018.
What should you take away from this analysis? Matt McCall said he’s scared of a lot — even the wind — but he’s not scared of this.
So now that you have agreed to turn off the TV and stop panicking, what are the next steps? Well, the coronavirus has dragged down a lot of great stocks for no reason. Chinese streaming companies iQiyi (NASDAQ:IQ) and Bilibili (NASDAQ:BILI) were headed down. But there’s no logic behind that action. Streaming companies should be heading higher, especially in China, as more people opt to stay inside.
Top-notch homebuilder D.R. Horton (NYSE:DHI) was also struggling, despite the low interest and mortgage rates in the market. The coronavirus should have zero impact on buying homes.
On the other hand, investors have been buying up healthcare-adjacent plays like Alpha Pro Tech (NYSEMKT:APT) and Lakeland (NASDAQ:LAKE). McCall says to ignore that noise and research biotech companies that represent the future. He likes BioXcel Therapeutics (NASDAQ:BTAI), which combines next-generation therapies with artificial intelligence. For future pandemics, rapid drug discovery will change the game.
McCall isn’t alone in urging investors to stop panic selling. Stansberry Research’s Dan Ferris joins him on this episode to discuss everything that’s going on in the markets. And Ferris offers a great counter to McCall’s growth investing, as Ferris is known for Extreme Value, a value-focused newsletter.
Ferris agrees that now is the time to be looking for profitable opportunities, and he’s not trying to time the bottom. As long as the mainstream media keeps feeding the panic, he knows people will be selling. But he’ll be looking for the right moves to make (and no, he’s not talking about cashing out).
Perhaps what’s more exciting about the guest appearance for McCall and his followers is that Ferris recently recommended bitcoin. Yeah, a value investor recommended bitcoin. Ferris says he sees an “asymmetrical” payoff opportunity, and thinks starting small and thinking long term is the way to play the cryptocurrency now.
As the markets remain volatile, bitcoin is definitely an investment to watch.
And more than anything else, just turn off the TV.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.