By Charles Mizrahi, Founder, Real Talk Dear Real Talk Reader, “It’s always something.”
Every market downturn looks like it'll be the next big one.
Like the next Great Depression is right around the corner.
It happens every few years.
There’s a crisis that causes a decline in the stock market.
Take a look at this chart… (Click here to view larger image.) - On August 31, 1998, the stock market was down 19%.
- Reason 1: The Asian financial crisis.
- Reason 2: The LTCM hedge fund blew up.
- On October 9, 2002, it was down 49%.
- Reason 1: The tech bubble collapsed.
- Reason 2: Post-9/11 fears.
- And on March 9, 2009, it was down 57%.
- Reason: The global financial crisis.
And these are just three of many big downturns.
There was also the 2010 European debt crisis, Chinese market fears in 2016, the holiday crash in 2018, the COVID-19 pandemic in 2020 and the rise of inflation in the first half of 2022.
All of these big downturns looked terrible at the time.
And every time, it looked like it was the end of capitalism as we knew it.
Plenty of people thought it was time to sell stocks and never buy them again.
But what happened right after each one of those darkest times? Sunlight After each bear market, stocks recovered and went on to make new highs.
And the recoveries happened much quicker than you think.
In the three big cases I mentioned above, the length of time to erase the bear market drawdown was… - August 31, 1998: Three months.
- October 9, 2002: Four years.
- March 9, 2009: Three years.
There have been 14 bear markets since 1945.
The average drop was close to 33%.
On average, not including this current cycle, bear markets last 388 days — or just over one year.
Real Talk: 100% of the time, bear markets give birth to bull markets.
My point? It’s not artificial intelligence, electric vehicles or 5G. In fact, it’s set to grow faster than all those industries. Watch this video presentation for details. Our Leg Up Volatility should be expected.
It’s the price stock investors pay for higher returns.
So, the next time you feel like selling your stocks, think about the long term.
That’s exactly what we do in Alpha Investor.
Institutions have to report quarterly and consistently keep up with the stock market.
Otherwise, they lose clients and assets.
We don’t. Alpha Investors buy great businesses at bargain prices and sit tight.
We know that the biggest advantage we have is time. So, we don’t squander it.
Over the long term, businesses with industry tailwinds and rock-star management will be worth more.
In fact, I’ve just found a new business that fits the bill to add to the Alpha Investor portfolio soon.
So, members, stay tuned!
And if you haven’t joined us yet, what are you waiting for?
It’s not too late to gain access before I share this new recommendation. Find out how right here. Regards, Charles Mizrahi Founder, Real Talk We're on Social Media! Be Sure to Follow Us…
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