Here are Ross’ thoughts on what to expect in the coming weeks… and what to look for as you research stocks to jump into at a discounted price:
“Could stocks continue to go lower? Yes.
But I believe the bulk of the selloff is over.
From peak to trough (February high to last week’s low), the market has fallen 29.9%.
That’s an enormous move.
The high to low drop during the 2008 financial crisis was 54%, but that was a potential meltdown of the global financial system.
The coronavirus outbreak is serious, but not “end of the financial world as we know it” serious.
The hit to corporate profits will be a temporary one.
And once quarantines end and things return to normal, so will company sales.
Earnings will bounce back, GDP will continue to grow, and stocks will return to previous highs and beyond.
The best thing investors can do is look at the big picture, make some reasonable projections, and decide where it makes sense to start buying.
Make no mistake…
Although temporary, the COVID-19 outbreak will have a heavy economic impact.
Cruise lines, hotels, movie theaters, concert and sporting event hosts, airlines, restaurants, and non-essential brick and mortar retailers will all take a hit.
Some of them will even go bankrupt.
But again, the situation is not permanent.
They will have a terrible quarter in terms of sales and profits — maybe two.
But once the virus is contained or a cure is found, business will come back.
So the question investors should be asking is, “Will 3 to 6 months of low or no sales bankrupt this company?”
If the answer is no, it’s a stock you want to buy while it’s cheap.
It might take a month, it might take a year. But you will be rewarded for your actions.
If the answer is yes or maybe, it’s probably too risky to own.”
Now, Ross spends the majority of his time researching stocks for his clients…
So if you’d like to learn more about his methodology… and see examples of the profitable trades he consistently finds for his members…