I know yesterday’s sharp pullback made many of us a bit queasy. To try to ease your fears (and stomachs!), in today’s blog I’ll point out the three main points that are causing stocks to tumble right now…
Clearly, the Nasdaq is still attempting to “retest” its February 8 lows. The S&P 500 and Dow both successfully retested their February 8 lows in mid-March. So, if the Nasdaq can retest and hold these lows, the broader indices should rebound strongly.
Overall, there are three main factors that drove the stock market lower yesterday: 1) Facebook’s data problems with the U.S. and British governments; 2) President Trump picking a fight with Amazon; and 3) Tesla—with its recent fatal accident, Model 3 recalls and CEO controversy.
However, first-quarter earnings season will get underway here in a few weeks—and the stock market can’t ignore earnings for long. So, as better-than-expected earnings are released, we should see the market firm up, and many stocks will resume their trek higher.
That’s why we always need to remember in down times like this that our best defense remains a strong offense of fundamentally superior stocks.
And the best way I know for you to be sure you’re able to build a portfolio of fundamentally superior stocks right now is to join my Blue Chip Growth service today.
Blue Chip Growth is an effective yet simple way for you to weather the kinds of downturns we’ve seen recently.
Now, that’s not to say that our stocks won’t take hits during times like these, but one of the fundamental factors our stocks possess is to bend but not break during market downturns. That’s why I expect our Blue Chip Growth stocks to bounce like fresh tennis balls once the market comes roaring back.
So, if you’re interested in owning the kinds of fundamentally superior stocks that can survive the kinds of market selloffs we’ve been seeing recently, I urge you to consider joining Blue Chip Growth today.