Here’s Why Last Week’s Selloff Worries Me a Bit…
“Is This Sell-Off the Big One?” – CNBC
“What About a 50% Crash?” – MarketWatch
“Investors Flock to Treasuries” – Reuters
Dear Emerging Growth member,
U.S. markets bounced briefly higher Monday morning, but let’s face it: Last week’s selloff was a lot to deal with.
Especially Friday’s plunge, when all three major U.S indexes suffered their worst single session losses in more than a year, led by a 300-plus point decline in the Dow.
This has my attention for two reasons…
First, the precise cause for the selloff is difficult to pin down. The prospect of slowing growth in China played a role—as did widespread weakness in emerging market currencies, from Argentina to Turkey to Brazil.
The word “contagion” is creeping back into the conversation. I have my own thoughts on the true causes and effects of this latest “crisis,” which we’ll discuss in your scheduled Emerging Growth issues and updates.
Including one mildly troubling aspect that sets this latest market disruption apart: Much like the currency crises of the late 1990s and the more recent European debt crisis, this latest disturbance has its roots overseas.
Meaning, among other things, that the selling by previously complacent U.S. institutional investors could become widespread—even indiscriminant in nature—affecting low-quality and high-quality U.S companies alike.
There’s also the perception that any fix is even more “beyond our control” and more difficult to address than is typically the case. Especially, now that the Federal Reserve has committed to dialing back its aggressive asset purchases.
Given that we’ve gone more than two years without so much as a 10% stock market correction —the fifth longest such stretch in history—it’s easy to see why experienced market-watchers are suddenly on edge.
This is even more troubling…
More troubling in my view than the “cause” of last week’s selloff—more troubling even than the market action itself—is how quickly the media pounced on this latest “crisis” and the effect this has had investors’ moods.
Clearly, the alarmists have been waiting for just such an opportunity—and the financial media are eager to usher them back onstage (as ironic as this might sound given that “experts” were so recently pleading for a “healthy” pullback).
For the record, I believe this is exactly what this is. In fact, I’m nibbling on quality stocks already, both for my private client accounts and in my Navellier Family Trust (I’ll gladly tell you what I’m buying if you’re interested).
But that doesn’t mean it will be smooth sailing. Again, U.S. stocks haven’t suffered a proper "correction" of 10% or more since mid-2011—an exceedingly long run of good fortune. By virtue of that alone, we could be in for a near-term selloff.
If the prospect of renewed volatility concerns you, I can’t blame you—especially if you are nearing retirement, already retired, or have a significant portfolio at risk. If you’re interested, there are two things I’d like to do for you to help ease your mind.
First, I’ve asked my top analyst, to produce a quick write up on the three stocks we purchasing right now for my Navellier Family Trust. This will give you an idea of the steps I’m taking to grow and protect my family’s wealth in this market.
You don’t have to provide me an email address or any other information. Simply click the link below and you’ll be taken directly to a short report, revealing all three opportunities. You can easily scan it for ideas in a minute or two.
Just click the link below to read it…
Also, if you’re interested, I’ve made an impulse decision to make a small number of seats in my Navellier Family Trust available to Emerging Growth members like you—just as soon as my team can prepare to welcome you.
You don’t have to do anything today. I’ll be back in touch with more details, including what Family Trust is all about, the precise steps we’re taking to build our wealth with less volatility in 2013, and what you can do if you want to join us.
This is a limited opportunity. As you may know, we can only accommodate a small number of investors in my Family Trust, due to both the type of investments we’re making together and the high-level of service I’m committed to provide you.
For this reason, we have been closed to new members on all but a handful of days since I opened my trust on Labor Day 2012. I’ve decided to make a rare exception over the next few weeks, and I’ll be back in touch soon.
Until then—and whether you decide to sit tight or take action—please stay strong. We’ve gotten a break from it lately, but market volatility is inevitable. It’s frankly something we have to live with as investors.
Fortunately, there are simple steps you can take to ease your mind and reduce your exposure to the inevitable ups and downs (and worse). WITHOUT having to flee to cash or bonds—and risk missing out on the next leg higher.
More on this later. But begin right now by looking over the three stocks I’ve recently purchased for my Navellier Family Trust, including my rationale. You may own them already. If not, you might consider taking a position.
This is a special report I’ve created for Emerging Growth members only. Click the link below right now to check it out.
PS: I’m distressed to hear how many hardworking U.S. investors missed out on the five-year bull market. But I’m not surprised. We went through some harrowing times in 2008-2009—it stands to reason that investors would be reluctant to get back into stocks. You may find yourself underinvested yourself. If so, you still have time to get back in the game, but you have to be selective. I conceived my Family Trust to show you step-by-step how to get cash invested in this secular bull market. Begin right now with the three quality stocks you’ll read about in my new report. Then if you’re interested, I’ll be back in touch with what you have to do to put Family Trust to work building and protecting your family’s wealth.