Are You Worried About a Recession or Bear Market? Here’s What to Do With Your Stocks

If I asked you to name some of the biggest stock market winners of the 21st century, there’s a good chance Amazon (AMZN) would come to your mind.

After all, Amazon has gone from a small online book seller to one of the world’s largest, most powerful companies. Amazon now sells virtually everything… and its founder Jeff Bezos is one of the world’s richest men.

As result, Amazon’s shareholders have enjoyed one heck of a ride…

Amazon’s market value has increased more than 86,000% since its IPO in 1998. That kind of gain turns every $10,000 invested into a stunning $8,610,000.

You probably know why Amazon is so successful. Its Prime membership program is a huge hit. Its mastery of logistics has lowered the price of almost everything. Its cloud computing business generates billions of dollars in annual revenue.

What you probably don’t know is what the Dow Jones Industrial Average did on March 4, 2015… or what the Dow did on October 18, 2013… or what the Dow did on ANY specific day of Amazon’s incredible 86,000% bull market.

That’s because what the stock market did on those days didn’t amount to a hill of beans compared to what Amazon’s business was doing.

What the market did or what made headline news on any specific day is meaningless compared to the moves Amazon’s management was making.

What really mattered to Amazon shareholders wasn’t the broad market, interest rates, or political wrangling. What really mattered was that Amazon constantly innovated and beat its competition.

Here’s why this is so important to you as an investor…

If you follow the markets for more than a few days, you’re sure to come across “bearish” news and predictions. That’s certainly the case now after stocks slipped into a bear market this past week over coronavirus fears.

There’s a whole industry of financial analysts who constantly predict the fall of America, runaway inflation, the next Great Depression, and a host of other calamities.

These folks are born pessimists.

No amount of positive things can shake them from thinking things are about to go to hell in a handbasket soon.

And you know what?

We listen to them.

Humans are hardwired to pay close attention to potential dangers. A hundred thousand years ago, it’s how we survived. Constantly worrying that a tiger or bear could be around the corner was a valuable instinct.

These days, we don’t have much to fear from bears or tigers. However, our instincts make us pay close attention to potential dangers. So, many of us are compelled to click on bearish headlines, buy magazines with gloomy forecasts on their covers, and read bearish financial newsletters.

As financial media insiders like to say, “Fear sells.”

Fear in the market is near a record high. Fears of the coronavirus, a looming recession, and an unfolding oil price war have rattled the market and the economy. Investors are wondering if they should sell everything, invest more, or simply do nothing.

I want to address these questions and concerns for you, so I’m hosting a special live event on Tuesday, March 17 at 7 p.m. ET. It’s called the Crisis and Opportunity Investment Summit, and it’s free for you to attend. Simply click here to register now.

In the meantime, I encourage you to let common sense and the facts overwhelm your caveman instincts. You’ll be far more successful as an investor if you do.

And what are the facts?

  • Well, just consider that the stock market has averaged a positive annual return of 7% for the past 100 years.
  • The stock market has gone through a dozen bear markets since 1930. After each and every one of them, stocks have rallied to new highs.
  • Consider that poor people in America get better medical care now than the world’s richest people did just 80 years ago.
  • S. homes have never been larger
  • Living standards in the U.S. have never been higher.
  • The average bull market lasts 4.5 years. The average bear market lasts just 11.7 months.

I’ve got one more fact for you…

During the 20th century, stocks appreciated in value 7% each year on average – a total return of 80,995%.

An 80,995% return turns every $1,000 invested into $810,950. Or every $10,000 into $8,109,498.

But wait…

Wasn’t the 20th century filled with wars and recessions and other awful things?

Yes.

There were two huge world wars, which killed tens of millions of people and devastated large portions of the world.

You also had the Great Depression… the Korean War… the Cuban Missile Crisis… the Watergate scandal … the inflation of the 1970s… the Arab oil embargo… the Vietnam War… the 1987 stock crash… and the savings and loan crisis of the 1990s.

You also had more than a dozen recessions and five horrible bear markets.

Despite all these horrible things, U.S. stocks appreciated in value by nearly 81,000% during the 20th century.

Despite something bad happening every decade, incredible wealth was created by innovative businesses like Coca-Cola (KO), Ford Motor (F), Hershey (HSY), Intel (INTC), Disney (DIS), General Electric (GE), McDonald’s (MCD), Proctor & Gamble (PG), Tootsie Roll (TR), Pfizer (PFE), Microsoft (MSFT), Walmart (WMT), Starbucks (SBUX), and thousands of others.

We all know there are problems in America… like debt, poverty, and inequality.

These topics are covered daily in the news.

They are the subjects of best-selling books.

They have many people paralyzed by fear.

But if you know your history and know how powerful American innovation is, you know this is no cause to sell your stocks and crawl into a hole.

You know that for every ONE problem in America, there are THOUSANDS of brilliant people working on innovative solutions.

They are developing amazing products and services that will make our lives better.

These are the types of people who invented the light bulb… the television… the pacemaker… the airplane… and the iPhone.

They are people who have the brains and work ethic to create incredible businesses like Starbucks, Facebook (FB), Amazon, Whole Foods, Apple (AAPL), Nike (NKE), and Alphabet (GOOGL).

These companies have provided good jobs to millions of people… they provided goods and services to thankful customers… and they produced hundreds of billions of dollars in wealth for their shareholders. All by creating and innovating.

Even better, these kinds of folks work in America. Despite what some Debbie Downers like to say, the legendary investor Warren Buffett is right: America is still the greatest place in the world to do business.

  • We have deep and liquid capital markets.
  • We have rule of law.
  • We have excellent accounting standards, which creates transparency.
  • We encourage and foster innovation.
  • We respect property rights.
  • We have an excellent transportation network. (If you like to complain about U.S. infrastructure, I urge you to visit a third-world country for comparison)
  • We have a huge population of well-to-do consumers ready to buy great products and services.

The advances made by American entrepreneurs allow today’s average American to live better than a king did 100 years ago.

Even people in America’s “low income” bracket have better medical care, better food, better transportation, and better access to information than anyone did in 1919 – no matter what their level of wealth.

In other words, free markets, innovation, and productive enterprise have allowed mankind to achieve incredible progress despite wars, recessions, and bear markets.

It’s been that way for centuries… and it will continue to be that way in the future.

Below is a chart of the Dow Jones Industrial Average from post-World War II through mid-2019:

Incredible, right?

With this picture in mind, my advice is to “make the trend your friend” and ignore the ignorant naysayers. Don’t focus on the fear-stoking headline of the hour and get scared out of your holdings of high-quality innovative companies.

Focus on what really matters: Innovation.

We’ll talk much more about this in the Crisis and Opportunity Investment Summit on Tuesday, March 17 at 7 p.m. ET. At this time in the markets and in our world, remember that despite all the negative developments of the past 100 years, shareholders of innovative companies made fortunes.

It’s been the surest way to get rich in America for more than 100 years. It will be that way for at least 100 more. That’s why staying bullish on innovation is at the foundation of what we do in Early Stage Investor.

P.S. The Crisis and Opportunity Investment Summit on Tuesday might be my most important event of the year. The stakes couldn’t be any higher right now.

That’s why I’m urging you to tune in on March 17 at 7 p.m. ET, when I’ll be revealing my detailed 2020 road map for the first time ever.

The last time I laid out a similar market road map – in 2009 – folks had the chance to walk away with gains as high as 2,235%, 1,423%, and 1,502% with lower risk.

This was amidst one of the worst financial collapses in recent memory.

I’ll also be sharing the name of the number one stock that should be on everyone’s buy list today. It could easily soar 500% or more!

The Crisis and Opportunity Investment Summit is free to attend. No strings attached. I strongly encourage you to sign up for free right here.

Matt McCall’s MoneyLine Podcast

Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt talks about everything from past pullbacks to recessions to the coronavirus and its role in the stock market emergency. We headed into this new bear market fast. Fear and panic selling are at all-time highs – but fear isn’t the answer. And that’s why Matt is sharing his top five tips for profiting during a bear market. He also shares advice for millennials investors, his thoughts on the Robinhood trading platform, and possible growth opportunities for long-term investors.

You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.

Learn where Matt McCall sees
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