The silver lining in the 2022 bear market … a buying opportunity for the ages … the phenomenon behind today’s set-up … Luke Lango’s big event today at 4 PM ET

We’re bringing you today’s Digest early to make sure this afternoon’s Zero Hour event at 4 PM ET with Luke Lango is on your radar.

Let’s just be direct about why it would benefit you to attend.

Here’s Luke:

A rare stock market phenomenon is emerging as you read this.

Historically speaking, investors who have capitalized on this phenomenon had the chance to double their money in 12 months, 10X their money in 5 years, and 30X their money in 10 years… even if the broader markets crashed!

Throughout my stock-picking career wherein I jam-packed more than twenty 10X stock picks into just a few years, I’ve never been more bullish than I am right now. 

Let’s back up and fill in a few details.

How the market crash of 2022 is setting up a generational buying opportunity

Before we jump in, for any newer Digest readers, Luke is our hypergrowth expert. He focuses on innovative technology disruptors that are changing our world, and generating huge investment gains in the process.

Of course, if you’ve owned such cutting-edge tech stocks over the past 18 months, “huge investment gains” isn’t what you’ve experienced. The bear market for the broad S&P has been a gargantuan, snarling bear for tech investors.

But this exaggerated pain is setting up the investment opportunity that Luke is so excited about. It’s a phenomenon he calls a “divergence.”

Here he is to explain more:

A divergence is not something you’ve probably ever heard of elsewhere, mostly because it’s something my team and I are the only ones to discover.

It is this ultra-rare phenomenon, that occurs only about once a decade, wherein certain individual stock prices diverge significantly from their “true” stock prices, as determined by the company’s fundamentals.

The divergences always end with those individual stocks snapping back to their “true” stock prices, resulting in enormous returns for investors who bought during the divergence window. 

As we detailed in Tuesday’s Digest, these divergence windows materialize thanks to two critical ingredients

Fear and fundamental strength.

On one hand, you have massive investor fear. This is often based on exceptionally challenging macroeconomic conditions.

As bad conditions get worse, corporate America’s revenues and earnings decline. Fearful investors bail out of stocks. This selling pressure is self-reinforcing, leading to more fear and pain for investors, which results in more selling and even lower stock prices. Rinse and repeat.

The end result is a brutal price crash.

On the other hand, you have a select group of companies maintaining fundamental strength. This relates to the true condition of revenues and earnings from a top-tier company that’s plugging away during such challenging macroeconomic conditions and market panic.

This company isn’t immune from lower revenues and earnings – slowdowns and economic headwinds are an inevitable part of the business cycle. So, there is some degree of economic pain felt.

The difference is that this company’s stock price – battered and bruised by terrified investors – no longer reflects the true condition of the company’s revenues and earnings (even though revenues and earnings might not be in top shape).

The gaping chasm between the deflated stock price and the actual reasonably strong shape of the company’s fundamental strength is the divergence.

As we pointed out in Tuesday’s Digest , Luke believes we’re seeing peak fear today. As just one example, the American Association of Individual Investors weekly survey found that for two weeks in a row, the percentage of bearish investors in America has outnumbered the percentage of bullish investors by more than 40%.

Luke tells us the net bull ratio has been this low only once before: In early March 2009, the exact same week stocks bottomed after the Great Financial Crisis.

Meanwhile, companies with fundamental strength are still generating solid revenues and profits – even if they are not as healthy as they are during an economic expansion.

What history tells us about how such divergences play out for wise investors

According to Luke’s research, there have been three Great Divergences over the past 40 years: 1988, 2001, and 2008.

Each time, they offered investors the chance to buy world-changing companies at blockbuster discounts.

We looked at three examples on Tuesday: Microsoft in the 1988 divergence, Amazon in the 2001 divergence, and Salesforce in the 2008 divergence.

Luke says that following these divergences, Microsoft soared 40,000%… Amazon investors scored more than 20,000% gains… and Salesforce owners hit 10X returns in five years.

But let’s expand on this.

Here’s Luke with additional research:

Based on data from over 20 stocks through three different divergences stretched over 40 years, we’ve found that the average forward 12-month return in these divergence stocks was about 135% across all the examples.

Forward five-year returns were almost 1,000%. Forward 10-year returns were exceeded 3,000%. While forward lifetime returns were more than 20,000%!

So, we’re not just talking about stocks to buy today and sell tomorrow, or even stocks to buy today and sell in a year. 

Yes, divergence stocks tend to double in 12 months. But they also tend to rise 10X in five years, and more than 30X in 10 years. 

We’re talking about stocks to buy today and hold forever – stocks with the chance to turn meager $10,000 investments into multi-million-dollar paydays. 

These divergence windows tend to close very quickly, which is why Luke is urging investors to take advantage of today’s conditions

If you missed it, news this morning is the Consumer Price Index increased 0.4% month-over-month. That’s more than the 0.3% Dow Jones estimate. On a 12-month basis, headline inflation was up 8.2%.

Meanwhile, core inflation surged 6.6% year-over-year – that’s the largest 12-month gain since August 1982.

This is a dagger in the heart to hopes we’d see a meaningful cooling in inflation that would prompt a dovish Fed pivot. Interestingly, while stocks sold off hard on the news this morning, they’re rallying just as hard as I write at lunch.

This underscores a point that Luke makes about how fleeting these buying opportunities can be:

The window to buy is rapidly closing. And we’re ready to capitalize on it for huge returns.

We sit in the midst of a truly unprecedented money-making opportunity. If you really want to crush this bear market and turn it into the best thing that’s ever happened to you financially, you need to act now. 

Today, at 4 PM ET, Luke is holding an event to present all his research on the divergence, as well as reveal the type of stocks that are in best position to surge. Luke will even be giving away his number-one divergence stock to buy right now.

To join us at 4 PM ET, just reserve your seat here, then tune in later today to learn why Luke says “the divergence market phenomenon offers investors the best buying opportunities in stock market history.”

Have a good evening,

Jeff Remsburg