A Simple Road Map to Maximize Gains

The Crisis & Opportunity Investment Summit

Dear Reader,

Due to the coronavirus pandemic, the market has taken a beating in March, and we are closing in on the worst month since 2008. But both the economy and stocks will recover from the coronavirus — and I want to explain why.

There are several positive signs for consumers, such as lower oil prices. Add in historically low interest rates and you have the strong likelihood that businesses and consumers will spend.

Underlining these positives is an unprecedented stimulus package on the way that will help kickstart the economy when the time is right and the coronavirus is brought under control.

To that end, help looks to be on the way from healthcare and biotechnology companies. I’ve mentioned Fulgent Genetics (FLGT) in my writings before. It’s one of my Early Stage Investor stocks. The genetic testing company just announced a new coronavirus test based on Next Generation Sequencing technology.

The first human trials in the U.S. for a potential coronavirus vaccine from Moderna (MRNA) began on March 16, and China has approved human trials that will take place in Wuhan, the epicenter of the pandemic.

In addition, an antiviral treatment made by Gilead Sciences (GILD) is nearing the end of its clinical trials in Asia, and doctors in China have reportedly said it has been effective. Gilead along with Regeneron Pharmaceuticals (REGN) have been mentioned by the White House as companies with treatments that could be ready in the U.S. if approved in the very near future.

And Athersys (ATHX) received Fast Track Designation for its Acute Respiratory Distress Syndrome program, which the FDA said is “highly relevant” for the coronavirus.

I know it is difficult right now, but we will get through this — with the help of the companies listed above among others. And as with most things in life, setting up a plan for what’s to come is crucial.

That’s why I want to share with you my investing road map for the days ahead. I’ll do that in my free webinar tomorrow night at 7 p.m. ET, Part 2 of my Crisis & Opportunity Investment Summit.

Here’s a preview of that – and I’m working on my #1 stock recommendation that could easily soar 1,000% or more from here. I’ll be releasing it during tomorrow’s event and look forward to telling you about it then.

Follow the Road Map

The coronavirus is a hit to the economy as well as stocks. No question about it. The important point is that they both will recover.

Stocks will need to go through a few phases on their way back to new highs. It should look something like this:

  • Phase 1: Stocks take the gut punch and pull back.
  • Phase 2: Stimulus is injected into the economy and stocks begin to build a base and move sideways.
  • Phase 3: Stimulus starts to take effect and stocks react – the rally is underway.
  • Phase 4: Stocks reach new highs.

Road MapRoad Map

Phase 1 can last a few weeks before the volatility and fear begin to subside. We experienced that.

Now, we’re transitioning into Phase 2, as the stimulus has started to appear and we’ve seen some market bounces. The White House and Congress agreed to a $2 trillion stimulus package, and we already have low interest rates, low mortgage rates, and emergency actions from the Federal Reserve. As stimulus checks percolate through the economy, they will be fuel for the next big rally.

When all is said and done, the amount of stimulus the government and central banks pump into the markets will exceed that of the Great Recession of 2008-2009. If my view is correct, it will lead to years of huge stock market gains. It will be the fuel behind the start of the Roaring 2020s.

As for predicting exactly when stocks bottom or when they begin to break out…

I have learned over the years that attempting to pick a precise bottom inevitably leads to disappointment. You can only identify a bottom in hindsight. The better strategy is to look for the “sweet spot.” By that I mean a level where stocks have gotten very cheap and have a high likelihood of rallying in the near future.

What I do know is that Phase 2 could turn to Phase 3 at any time, and that the best strategy is to get your buy list ready now or start to move cash into stocks like the one I plan to recommend tomorrow. Even if stocks remain volatile a while longer or drift sideways for some time, history shows that stocks are poised to rally once this is all over.

I’m a market history geek. I have studied the U.S. stock market closely because there are valuable lessons and patterns that we can incorporate into our own investing today. I don’t know everything, but I do know that every single time this type of dramatic sell-off has occurred, it has created a great long-term buying opportunity.

Signed:
Matt

P.S. I bet only one in 1,000 people have heard of the stock I’ll be recommending at Part 2 of the Crisis and Opportunity Investment Summit. Remember, it’s tomorrow, Wednesday, April 1, at 7 p.m. ET.

The road map that helped me navigate the markets back in ’08 and ’09 is the single best shot you have at not only recouping your recent losses but ultimately growing your money.

You’re all registered and your spot is reserved. I can’t wait to talk with you then.


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