Dear Prosperity Insider,
When the stock market took a nosedive last month, fear was everywhere. Tariff headlines sent Wall Street into a tailspin. Talking heads on CNBC fanned the flames, warning of an economic collapse. The Dow dropped over 2,000 points, the Nasdaq dipped into bear market territory, and April was shaping up to be the worst month for stocks since 1932.
But we didn’t flinch. While others panicked, we held firm.
That’s not because we’re smarter. It’s because we understand something most investors never learn: the key to long-term success isn’t brains — it’s temperament.
When the market is crashing and everyone is selling, your gut will scream at you to sell too. But that’s exactly when you need to stay calm.
Because, as we saw once again, the market always climbs the wall of worry.
After getting knocked down last month, the market came roaring back.
Since the lows on April 7, the S&P 500 has surged 22%, turning negative territory into gains for the year. It’s now one of the biggest short-term comebacks in market history.
It just goes to show: patience pays.
As of this past Friday, the S&P 500 is positive, and the Nasdaq is only down slightly. All that panic? Nothing more than short-term noise. From panic to profit — the S&P 500 has surged 22% since April 7, marking one of the sharpest comebacks in market history. (Click here to view larger image.) If you stayed the course, you were rewarded.
Take Uber, for example — one of the companies in our portfolio.
On Friday, it hit an all-time high.
Not because of hype. But because the business is performing. Revenue is up. Ridership is strong. And they’re becoming a major player in autonomous vehicles.
While the world was distracted by headlines, Uber just kept doing what great businesses do — growing.
And it’s not just Uber.
Several of our holdings are now trading near their all-time highs.
That’s no coincidence. It’s the result of owning high-quality businesses and ignoring the daily noise. Your Worst Enemy Isn’t the Market Ben Graham — Warren Buffett’s mentor — said it best: “The investor’s chief problem — and even his worst enemy — is likely to be himself.”
It’s not market crashes or tariffs or politicians that derail investors. It’s emotion. Panic. Greed. Fear.
That’s why, from day one at American Prosperity, I’ve shared with you that the key to making money in the stock market is to focus on the business, not the stock price.
Think about it — if you owned a deli or a hardware store on Main Street, and the news said tariffs were going up, would you sell your whole business in a panic?
Of course not. You’d keep showing up. Serving your customers. Running your business.
It’s no different with great companies.
Two of our portfolio holdings reported excellent earnings over the past two weeks.
One is a dominant force in tech, growing its bottom line by billions while expanding AI globally. The other is a payments leader, growing faster than its peers and rolling out a small business platform in new countries.
But Mr. Market didn’t care. He panicked.
One stock dipped despite strong results. That’s fine with us. We know the value. We know what we own. And we know it’ll be worth much more in the years ahead.
The truth is, anyone can do what we do. You don’t need a fancy degree or special skills.
You just need the right temperament — the ability to keep your cool when others are losing theirs.
So when the next storm hits, and it will, remember this: don’t react to the headlines. Don’t check your account every hour. And don’t let fear make your decisions.
Keep a cool head. Stick with great businesses. And let time do the heavy lifting.
Because the market rewards discipline. And patience always pays.
Regards, Charles Mizrahi Founder, Alpha Investor |
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