You’ve made it.
After one of the most volatile years in recent memory, we’ve reached the end of 2022.
While most of us may feel like we were tossed from the frying pan right into the fire, I think there’s reason to celebrate.
This year has taught us a lot, and if you’ve stuck with me through it all, I hope you feel as if you can handle whatever else the market will throw us next year – and beyond.
So, for remainder of the year, we’re going to spend some time mulling over what you’ve considered the “best” of 2022 – with necessary updates, of course.
We’ll reflect on the megatrends that fueled each of these articles’ topics – and see how we can apply them to 2023… and beyond.
Let’s start with an article from July, titled 3 Reasons You Shouldn’t Fear the Bear Market.
“Seasons Don’t Fear the Reaper”
The statement “Don’t fear the bear market” has a similar feel to Blue Öyster Cult’s 1976 hit “(Don’t Fear) The Reaper” – why the heck wouldn’t we fear the reaper or the bear market?
Bear markets, like the Grim Reaper, are not known for boding well; they are often thought to be harbingers of worst things to come… and you’d be out of your mind not to fear them – even a little bit.
But I disagree.
In fact, at the risk of you exiting out of this email and shutting your laptop or tossing your smartphone across the room, I believe that bear markets are a good thing.
Bear markets are a bit like volcanic eruptions; the initial thought one has about both is a picture of chaos and destruction. But the soil around volcanoes is considered some of the most fertile on the planet, and that’s because the ash and magma following such terror is incredibly rich in nutrients.
You get where I’m going with this.
While at their apex, bear markets elicit a feeling of panic and hopelessness, it’s what comes after that makes it all worthwhile.
And I have three reasons why you shouldn’t fear the proverbial lava flowing through the stock market…
A Proven Strategy That Could Beat the DOW by 9X
Legendary investors Louis Navellier, Eric Fry, and Luke Lango have just produced an investing game plan that could help you beat the markets by at least 9X or more next year. It’s a simple approach that could show you 2023’s best-performing and most resilient stocks BEFORE the new year arrives.
Reason No. 1: Stock Up on Your Favorites During a Bear Market
Everyone loves a good sale – and a bear market brandishes a huge banner that says, WE SLASHED PRICES LEFT, RIGHT, AND SIDEWAYS!
Of course, the idea of spending money when our investment accounts take on water isn’t particularly alluring, but when solid stocks are down, it’s hard to pass up a good deal.
I could list at least a dozen companies that have excellent revenues, strong management, good dividends, and earnings beats, but the sentiment is the same: Bear markets are the ideal time to buy the stocks you were too nervous to pull the trigger on, were too expensive just six months ago, or that you already own and want to have more of.
End-of-Year Thoughts: I don’t think I need to ruminate on how many stocks – both well-loved and not – have plummeted this year. But, as I mentioned in July, it’s all about perspective and the knowledge that no company is immune to a bear market.
The stocks that have soared this year have suffered greatly in previous bear markets, and as I’ll get into later, every bear market gives way to new highs.
Reason No. 2: Unlikely Sectors Perform Well in Bear Markets
Up until this year, the oil and energy sector was the least likely to perform.
But as I’ve mentioned here before, energy stocks are making investors money when virtually nothing else is.
Google “the best-performing stocks of 2022”, and almost stock you’ll see is energy-related.
- Occidental Petroleum Corp. (OXY) has scored an 88% gain…
- EQT Corp. (EQT) has soared 63%…
- And Hess Corp. (HES) is up 54%.
So, if you’re a contrarian or you heeded my words about the emerging big oil megatrend back in January, you’ve likely had the opportunity to make some big bucks on stocks everyone else has ignored.
Readers of my elite trading research service, The Speculator, have had the chance to exploit this trend in full, capturing an average unweighted return of 230% on multiple split closeouts over four months.
But in truth, the energy megatrend is still going strong, and I fully believe that savvy investors can make money on it.
That means that the stocks that are cheap now won’t remain so for long, and if you miss out on this trend while it’s still emerging… well, I’ll just say that you might be kicking yourself while everyone else is taking profits after a tough bear market.
End-of-Year Thoughts: When I originally penned this article, I had not yet published anything on another facet of the energy megatrend: green hydrogen. But like “old energy” plays, “new-energy” green hydrogen plays have immense potential – especially as we march forward to a greener, cleaner way of living.
By no means do I think the emerging of new energy will eclipse and replace old methods – and certainly not anytime soon. The key word here is “emerging,” and getting in now is crucial.
Reason No. 3: New Highs Always Come After a Bear Market
The final reason you shouldn’t fear the bear market comes from InvestorPlace CEO, Brian Hunt.
Earlier this spring, Brian published a two-part article called “What to Do When the Stock Market Drops” (which you can view here and here).
In that article, he catalogs a few examples of bear markets that devastated investors… but went on to make new highs not long after.
Here’s Brian…
… during the famed 1987 “Black Monday” crash, the stock market dropped 33.5% in a single day. It caused a short-term global financial panic.
However, less than two years later, the stock market reached an all-time high…
Then you have the 2000-2002 bear market. This crash came after the dot.com reached its frenzied peak in March 2000. Although this was one of the worst market downturns in U.S. history, stocks went on to recover and reach new all-time highs in 2007…
Then there is the COVID-19 related stock market drop and recovery of 2020. When the world realized COVID-19 was a serious worldwide problem, the market fell 53% in less than two months. However, government stimulus helped the market recover and stocks reached a new all-time high by the end of the year.
If past is prologue, then even this bear market, as gut-wrenching as it may be, will let up.
Stocks will recover. Money lost can be remade. A trusty bottle of Tums, if you need it, currently retails for about $4.29.
Just keep these reasons to not fear a bear market close – and when that “volcanic ash” seeps into the “soil” of the market, we’ll be ready to profit.
End-of-Year Thoughts: This is perhaps the most important takeaway of this year: Bear markets can and will end… just never when we want them to. Our current state is no different. While the market may not make a full recovery in 2023 or turn a bullish corner, there is always money to be made somewhere.
To elaborate, last week, two of my colleagues – Luke Lango and Louis Navellier – came together to discuss the potential stumbling blocks we see in 2023… as well as the windfalls.
Luke, Louis, and I each trade very differently, but no less successfully…
- This year, I closed out seven double-digit and four triple-digit winners (including partial positions), like 4% on Micron Technology Inc. (MU)… 100.1% on the iShares 20+ Year Treasury Bond ETF (TLT)… and 51.9% on Trip.com Group Ltd. (TCOM).
- In 2022 alone, Louis has booked some big winners, like 1% on Digital Turbine Inc. (APPS)… 263% on XPEL Inc. (XPEL)… and 320.6% on Daqo New Energy Corp. (DQ).
- And in just the matter of a few short years, Luke has managed to uncover 17 stocks that have soared more than 1,000%. Even in this down year, he’s managed to close some big winners, including 326% on Beam Therapeutics Inc. (BEAM) and 639% on Innovative Industrial Properties Inc. (IIPR).
So, we each picked a stock we believe will soar in 2023… and we revealed them for free during our briefing.
The replay is only available for a limited time, so go here now to catch it.
Regards,
Eric
On the date of publication, Eric Fry did not have (either directly or indirectly) any positions in the securities mentioned in this article.
