Hey, Ross here:
Yesterday, I said there was some evidence that the low could already be in.
Then, the red-hot producer inflation data came out, plus Powell flapping his lips at the press conference.
Most major indexes have now fallen below last week’s low – with the exception, interestingly, of the Nasdaq.
Like I said yesterday, nothing is guaranteed in the markets – we can only play the odds.
But am I worried about the continued dip in the markets?
Not as much as you might think.
Today’s chart explains why.
Chart of the Day
Take a look at this chart.
It shows how stocks have historically performed around geopolitical events – from 6 months before the event to 12 months after.
The light blue line shows the median outcome. The dark blue line shows the average outcome.
And what you’ll notice is this:
Stocks often dip right around the start of the event…
But from there, they tend to recover quickly – and go on to post strong gains over the following months.
Now compare that to today. The orange line shows the current market path.
We’ve already seen weakness leading into the recent geopolitical tensions – in fact, we’re tracking below the historical range.
In other words, a lot of the fear may already be priced in.
And if history is any guide…
This is typically where markets bottom out – not where they begin a prolonged decline.
And there is one group of traders in particular who love to take advantage of this.
I elaborate below.
Insight of the Day
The insiders are the most skilled at buying bottoms.
You don’t need to buy bottoms to be successful in trading.
Just picking the leading sectors and riding the momentum can allow you to consistently beat the market.
That’s an easier and more consistent strategy than trying to “buy the bottom” in stocks.
But, if you do know how to spot the bottom – that’s how you get the really outsized gains.
And the best bottom pickers I know are the insiders – both the corporate insiders and the political insiders.
For instance, did you know that Senator Markwayne Mullin bought Chevron stock four days before we blackbagged Maduro?
Oh, and he also bought Raytheon on the same day too.
Like I said, these insiders always seem to know when to buy.
And during times of heightened uncertainty – like we’re in now – they openly seize the advantage.
Unsurprisingly, I’m now seeing a big uptick in insider buying activity.
And I’m going to share something tomorrow morning that will help you take advantage of this – so keep an eye out for that.
In the meantime, check out this video I shot on the #1 war stock the politicians keep buying.
Customer Story of the Day
“I’m not someone that usually leaves reviews, however, if I could give more stars I absolutely would!
I am currently enrolled in two of their courses. I knew NOTHING about the stock market when I joined back in March after seeing Ross on The Cartier Family YouTube Channel.
Ross and Jean have rather quickly taught me how to navigate the market. They are so patient with ‘newbies’ like me and have eagerly answered my questions with demonstrations.
I would highly recommend this down to earth and knowledgeable team to anyone that is on the fence about joining. Just take the leap and watch your wallet grow!”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
