3 Bear Markets to Buy as Traders Adjust

bear markets to buy - 3 Bear Markets to Buy as Traders Adjust

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Whether you’re a Journey fan or not, it’s time to stop believing in the market’s Roaring ’20s siren song. At least for the time being and in Wall Street’s most dearly-held benchmarks. That’s not to say there aren’t risk assets to buy. There are, they’re de-risked or rather declawed bear markets to buy.

Today, let’s check out three diverse secular growth stories to buy currently tangling with bear markets, but whose price charts insist 2022 is looking up for bullish investors.

A modest market correction is quickly being consumed by investors apparently unable to let a historic rally in the S&P 500 and other major averages go. Goodbyes to friends are tough though, right?

With broader market indices soaring upwards of 100% since the pandemic’s March 2020 bottom and large-cap influencers Tesla (NASDAQ:TSLA), Apple (NASDAQ:AAPL) or Home Depot (NYSE:HD) leading the way by a country mile, can we blame investors’ “don’t stop believing” desire for wanting more? Maybe not.

Historically though, the stock market leading today’s Roaring ’20s repeat attempt is exceptionally frothy. And preparing for a bear market cycle lasting longer than the time it takes a quart of milk to go sour makes sense.

  • Tilray (NASDAQ:TLRY)
  • QuantumScape (NYSE:QS)
  • Decentraland (CCC:MANA-USD)

The good news is that in a market made up of stocks, SPACs, digital coins and the likes, many are already in deeper corrective cycles. Even better, here are three bear markets to buy that offer solid trade-in deals for portfolios, which can help with any withdrawal pains in TSLA, AAPL and Co.

Bear Markets to Buy: Tilray (TLRY)

Tilray (TLRY) some gray technical matter should turn into the color of money for TLRY stock investors following bullish earnings confirmation
Source: Charts by TradingView

The first of our bear markets to buy are shares of Tilray.

The world’s largest weed or more aptly diversified cannabis operator by revenue delivered solid quarterly results on Monday.

TLRY stock’s second-quarter featured better-than-forecast cost improvements and in-the-green net income of $6 million.

The report also offered investors an 11th straight quarter of EBITDA and sales growth of 20% fueled in part by a broadening reach into alcohol and hemp-based wellness products.

Tilray’s earnings confessional also put a match under the shares with the stock gaining nearly 14% Monday. But don’t think for a second those good vibrations are going to go up in smoke.

Technically, investors could focus on concerning grayish matters like broken angular support dating back to Tilray’s Covid bottom.

Bottom line though, given the back story for this cannabis leader and TLRY also signaling a bullish weekly stochastics crossover, this bear market to buy shouldn’t leave a stench in investors’ portfolios.

QuantumScape (QS)

QuantumScape (QS) deeper correction in QS stock is offering opportunity to buy a declawed bear
Source: Charts by TradingView

The next bear market to buy is QuantumScape.

QuantumScape’s next-gen solid state battery technology is anticipated to take electric vehicles where none have gone before. Well, in due time and if everything goes according to plan.

Today that means the promise of a real-world working product in 2024 to 2025.

Not everyone is impressed by the timeline or the actual possibility of QS being able to bring a faster, stronger and less costly battery to the market.

And QS stock has shed nearly 85% from its December 2020 making hay day for bulls.

But this bear market to buy does maintain deep-pocketed believers in auto giant Volkswagen (OTCMKTS:VWAGY) and Microsoft (NASDAQ:MSFT) CEO Bill Gates.

That’s got to amount for something, right? If big-time backing doesn’t get investors charged up, the price chart should.

As with TLRY stock, it’s time to look past QS’ more menacing gray features and appreciate this bear market to buy as a more speculative play, but one that’s been thoroughly declawed.

Bear Markets to Buy: Decentraland (MANA-USD)

Decentraland (MANA-USD) bear market colliding with uptrend and Fibonacci supports
Source: Charts by TradingView

The last of our bear markets to buy is Decentraland’s MANA coin.

If investors are upbeat on cannabis or EVs being secular growth markets, then the metaverse’s prospects might just be out of this world. And that’s just not me talking.

Look no further than social media giant Meta Platforms (NASDAQ:FB) for confirmation MANA’s bear market is one to pounce on as a bullish investment.

Meta’s recent name change reflects its belief in Web 3.0 and the next iteration of the internet where big business and consumers collide in the metaverse’s landscape of augmented and virtual reality.

And Decentraland is one of those platforms breaking new ground in the metaverse by allowing users to “buy plots of land, develop them, and reap the rewards” in MANA token.

But you don’t have to go bust like Donald Trump trying to be a real estate mogul in this brave new world to profit from it.

Today investors are in solid position to take MANA to the bank as the coin collides with my own augmented reality of key Fibonacci and trendlines supporting a meaningful area to finish off this bear market to buy.

On the date of publication, Chris Tyler did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.


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