Finally… a bear market!
Well, almost.
The Nasdaq is down almost 18% from its highs. A “bear market” becomes official after 20%.
But it is looking more and more likely that we will see it.
So why am I excited by this?
Simple.
Bear markets set up the next wave of winning stocks.
Remember the 4 stages of the stock cycle? I’ve talked about it in several past posts.
Growth stocks surge and collapse in a repeatable pattern over time. Take Crocs Inc. (CROX) for example…
Shares surged 600% between 2006 and 2007 in a meteoric Stage 2 uptrend.
But nothing goes up forever.
As expected, the price eventually collapsed.
Note the huge red selling volume in November 2007. That was your clue. That is major institutional traders dumping the stock and heading for the exit.
CROX eventually traded down to $1 a share.
But guess what?
The cycle repeated itself again.
Last year, CROX hit $183. That’s an 18,000% gain from the 2009 lows!
Fast forward to today, and we have again entered a Stage 4 correction.
Is now the time to buy?
Absolutely not.
You never want to buy on the way down.
But CROX will set up again.
The stock will find a bottom, consolidate, and breakout in a new Stage 2 run.
And that is where you want to buy for maximum gains.
So don’t let this bear market get to you. Get excited. The next wave of winners is coming. And we will be there to buy them when the time is right.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
