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This Strategy Beat the Market in the First Half of 2020

And I’m Confident It Will Do the Same in the Second

It’s been a heck of a year so far … and we’re only just starting the second half.

stock market icons of a blue bull and a red bear (overvalued stocks)
Source: Shutterstock

The stock market experienced one of the worst first quarters ever — down 30% in 22 days. But that was followed up with one of the best second quarters ever, with the S&P 500 up 37.7%.

It was an unbelievable sell-off followed by a just-as-unbelievable rally.

As we enter the third quarter, I’m pleased to report that my second half outlook remains bullish. It won’t be a straight shot up — it never is. And we can continue to expect a lot of volatility.

But as we move into the second half of 2020, I have a strategy that will allow us to keep making outsized gains … no matter what the market throws our way.

The Roaring 2020s remain alive and well.

I fully expect the hypergrowth investment themes we’re following will continue to outperform the rest of this year and beyond.

But along the way, there are two things we need to cognizant of. The first is obvious — COVID-19. Cases have increased throughout the country, but the death rate is dropping dramatically. Still, we need a vaccine. Countless biotechs are hard at working trying to make that happen. Plus, I believe we are very close to herd immunity. When that happens, COVID-19 cases will suddenly drop. Just look at what’s happening in Sweden, Italy, and even New York City.

Then there’s the U.S. presidential election coming up in November. Politics in this country have gotten ugly, so expect increased volatility in the run-up to the election. Here’s the good news: If Trump wins reelection, we can look for more government spending, continued low interest rates, and a business-friendly environment that is always good for stocks. If Biden wins … we’ll likely see much of the same.

It’s a win-win situation for the market.

While volatility is almost a given throughout the rest of this year, the bottom line is that ups and downs are actually great for investors. We can use the swings to our advantage, buying the dips and using the opportunities to scoop up great companies at discounts.

Taking the Basket Approach

Whatever is thrown our way over the next six months, we’re keeping our sights set on the hypergrowth trends set to grow five … 10 … even 50 times in size over the long term. And the best way to do that is by buying “baskets” — or portfolios — of a handful of the best companies operating within that trend.

By purchasing a small group of top-rated companies, we don’t take the risk that comes with betting the farm on a single stock.

I’ve never claimed to have a crystal ball. But by buying strong companies in even stronger investing trends, we can have conviction that the basket will go higher every time — even if every stock doesn’t.

Take the Transportation 2.0 Portfolio in my Investment Opportunities newsletter. This basket focuses on the multi-trillion-dollar transformation that’s underway in the sector. The shift to electric and autonomous vehicles and even flying cars is like going from the horse and buggy to the combustible engine.

We currently have six stocks in the Transportation 2.0 Portfolio, two of which are up big while four are down. That’s only a 33.3% batting average … yet the overall basket is showing a positive average return of 29% and easily beating the S&P 500.

This is a perfect example of why it’s so important to buy the entire basket rather than trying to be a hero and picking the one stock that will outperform the most. By spreading our risk among the top performers in the sector, we can make money even if some stocks end up being laggards. It only takes one to really hit it big.

Over in Early Stage Investor, where we employ a venture capital style of investing and search for smaller stocks with greater reward potential, our Transportation 2.0 basket is up an outstanding 130%. Much of that gain is thanks to Workhorse Group (NASDAQ:WHKS), which I’ve told you a lot about recently. Shares rocketed 7X on the electric truck craze — and my subscribers locked in average gains of 385% by selling two-thirds of our position. Now we’re playing with house money!

We also have another little-known stock that’s up more than 238%.

As you can see, all it takes is one or two stocks to massively accelerate our returns.

Our basket approach doesn’t just work in the transportation industry. It’s making us big money all across the board … in ALL of the hypergrowth trends driving the Roaring 2020s.

Like solid state batteries. Without these, next-generation transportation would be impossible! Our Solid State Batteries Portfolio is up 63% thanks to one small company that’s seen its stock climb nearly 300% in a year and a half.

Or the future of healthcare. I’m convinced that the transformation that’s coming in this industry will make biotech stocks some of the biggest winners of the decade. Everything from genetic testing and gene editing to AI-enabled drug discovery and development to precision medicine will lead to new treatments and a spike in longevity. And it’s just getting started.

Guess how much our Healthcare 2.0 Portfolio is up since early 2018? A whopping 81% — with our biggest winner showing an unbelievable 458% gain!

The best news of all is that it’s not too late to get in. Click here to get the names and tickers of all of the stocks in our portfolios. The time to get on board is now.

The second half of 2020 might be just as crazy as the first (although hopefully not), but by positioning ourselves in the hypergrowth trends of tomorrow EARLY — before the masses — we stand the best chance of realizing life-changing gains.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2020/07/this-strategy-beat-the-market-in-the-first-half-of-2020/.

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