“They should just close the market for August and re-open in September” is what a multi-billion dollar fund manager said to me a few weeks back. It’s true, markets tend to catch a cold in August. Maybe we should all be zombie investors in August…more on that in a bit.
Since mid-July we said that August tends to bring sell-offs. Having a game plan is key. The selling this week is nothing new and was expected. That said, Monday’s selling was the biggest of the year. Last time we saw massive selling like this was the week of 5/28/19. That didn’t last long. A zombie investor does well in this environment- buy great stocks and die for a while. Being a zombie can crush the market’s return, especially going shopping in a falling market! (link to a full report below.)
Will prices go lower near-term? Most likely. But, that’s a good thing because it’s a buying opportunity for great stocks. On July 14th we started preparing:
“Don’t get alarmed but know this:
We are in a strong market, trading at highs with nearly all buy signals. That’s usually unsustainable, which means I think we are setting up for a little give-back. I don’t do predictions, but gun to my head- we could see -5.5% by mid-August; 2850 on the S&P 500. The data will give clues if something like this is going to happen. But then I believe it will just continue to march right on higher.”
So, what’s next? We are prepping our buy lists. We only focus in on the best stocks out there.
What’s a zombie investor, anyway? Read our latest white paper, Zombies Are Real, in partnership with Navellier & Associates.
So here’s what you do: go on a market vacation for August and come back in September. If you’re brave and want to stay and fight- stay calm, have your shopping list handy looking for deals. Adopt the icy dead calm of a dead person. When you buy, plan on dying for a while like a zombie. When you wake up- odds are you’ll be really happy when you see your statements.
For ideas on what the best stocks are to look for, check our archives of MAP 20s. Or look for our member’s only post of target deals we are looking at (coming soon).
This is the way the world ends; not with a bang or a whimper, but with zombies breaking down the back door. ― Amanda Hocking, Hollowland