The Big Profit Potential in This Rare Market Phenomenon

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The Big Profit Potential in This Rare Market Phenomenon

Source: InvestorPlace Media

I understand that 2022 has been a bad year for most investors.

We’ve seen some decent rallies, but then a day like this past Tuesday comes along – the worst day in more than two years – and some of those gains are given back. In a broad-based decline like we’ve experienced this year, it seems that no stock is immune.

And yet, this selloff has created a tremendous moneymaking opportunity. We probably haven’t seen one like this in 15 years.

You can now buy a share in some extremely high-quality stocks for the same price as a Big Mac combo meal at McDonald’s. When you get the chance to own elite stocks at bargain-basement prices, you simply can’t afford to ignore it.

It’s like a department store putting all their Gucci and Prada merchandise on the discount rack. Or a Mercedes dealer unloading all his new cars at used car prices. Or Tiffany’s having a sidewalk sale.

And that’s why I put together this week’s special Under $10 Stock Event to talk about this rare market phenomenon before it disappears.

Thank you to all who joined us for it. If you didn’t get a chance, you can watch it here for a limited time. I also want to share some of this information for you in today’s Market 360 because it is too important to miss.

In fact, the last time this phenomenon occurred, I recommended 16 stocks that have since gone up at least 1,000%…

Buying the Strongest Stocks at Bargain Prices

My 40-plus year career in investment research has been built on understanding which stocks will be in highest demand by Wall Street a month, six months, or a year from now. I call these stocks A-rated stocks.

These stocks score highest on fundamental factors like earnings and cash flow, and they are also in the highest demand by the big institutions. They are hard to find and potentially very, very lucrative for their owners.

Right now is the absolute best time to buy A-Rated stocks.

Most of the time, these superior stocks are not cheap. Given how rare and exceptional they are, it’s highly unusual for them to be selling for less than $10 a share. But after the rough year we’ve had, even the best stocks have been hit by relentless selling.

Literally dozens of A-rated stocks are trading in the single digits. And that has given anyone the chance to pick up truly outstanding stocks for prices that may never be seen again in our lifetimes.

This phenomenon of quality stocks trading for $10 or less is rare because, in a normal market, we would generally steer clear of stocks selling for that low a price. They’re either risky start-ups, worthless penny stocks, or failing businesses on their way to zero. Lots of big investment funds

However… once in a great while, a stock market anomaly creates the rare opportunity to buy extraordinary companies for less than $10 per share.

The last time this phenomenon occurred was in 2009. Chipmaker Advanced Micro Devices (NYSE:AMD) traded for $2.01 before it soared more than 7,900%…

Advanced Micro Devices chart

There are many more examples, but the key point is that we have similar, rare opportunities right now.

Thanks to the mass panic in 2022, you can now buy many of the world’s best, most promising companies – operating in powerful megatrends like artificial intelligence, batteries, and self-driving cars – for under $10 per share.

This kind of “catastrophe discount” distorts the relationship between a stock’s price and its value. It’s a true anomaly and very rare, which is why I’m urging people to jump on the opportunity while they can.

These Opportunities Don’t Come Along Very Often

Only a small percentage of stocks on the S&P 500 qualify for my system’s “A” rating. They’re of such high quality that only a handful are priced below $10 a share. But today, there are no fewer than 26 A-rated stocks under $10.

I cannot emphasize how rare this situation is.

Lots of people have lost a lot of money this year. It stinks, and I don’t want to ignore that. But the fact of the matter is that tough times have offered investors some of the biggest moneymaking opportunities in history.

A mass panic produces huge opportunities because it introduces incredible amounts of emotion into the market. And when emotion levels go off the charts – reason goes out the window. During crashes, the price of assets becomes “decoupled” from the true value of assets.

Decoupling = Opportunity

Eventually, the de-coupling between price and value goes away. The fancy term for this action is “mean reversion.” I like to think of it as a rubber band, stretching out in one direction until it snaps back to its original shape.

Whatever words you use, the important thing is that this “return to normalcy” can hand you some of the biggest gains of your life.

As we speak, there are dozens of great A-rated growth stocks out there trading for less than $10 per share. All have the potential for huge gains when the de-coupling ends and we return to normal.

Opportunities to make a ton of money in a short period of time like this one only come around about once a decade or so. Even a moderate investment now can totally change your financial trajectory.

Sincerely,

Source: InvestorPlace unless otherwise noted

Louis Navellier

P.S. It’s been nearly 15 years since an opportunity like this one came around. And it might be 15 years before it comes around again.

Click here now for a full replay of the Under $10 Stock Event so you don’t miss out. This rare phenomenon to buy quality stocks at such low prices opens a small window for potentially big gains.

I even reveal the name of one investment recommendation during the broadcast.

This replay is available for a limited time, so click here to watch it now before it’s too late.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Advanced Micro Devices (NYSE:AMD)


Article printed from InvestorPlace Media, https://investorplace.com/market360/2022/09/the-big-profit-potential-in-this-rare-market-phenomenon/.

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