{Numbers Never Lie} Stocks Tend to Go Strong, Even in the Face of Recession

Plus, is it time to buy the worst performers of April? The Most Powerful Patterns in the Stock Market These 5 unique patterns have proven to be incredibly historically accurate. Most investors have no idea which price patterns work and which don’t… And it may SHOCK you when you see which one performs best. [ > Click here now if you’re ready]( By clicking the link above you agree to periodic updates from WealthPress and its partners [(privacy policy)](  Why Stocks Could Still Outperform Before the Next Recession [Image]  Hello Stock Traders  Word on the street is that we're cruising towards a recession by the end of this year. Yep, that's right. But hold on, don't start panic-selling your stocks just yet. You see, despite these ominous clouds, buying equities could still be a smart move. Sure, the S&P 500 might be in a bit of a dance with the 4200 resistance level, but hey, who doesn't love a good tango? Here's the thing. Predicting a recession is like predicting when your in-laws will drop by unannounced. You know it's coming, but the exact time? That's anybody's guess. And while we're all bracing for this economic winter, your cash could be quietly losing value to inflation. It's like leaving your ice cream out in the sun while you wait for a particular bird to fly by. Not the best plan, eh? Now, let's take a quick history lesson. Since 1871, the US has seen 30 recessions. That's right, 30! But here's the interesting part. Bloomberg crunched some numbers and found that the S&P 500 had a positive total return 21 times, 6 months before each recession. So, if you had a good chunk of equities in your portfolio before a recession hit, you'd probably be doing a little happy dance. Equities also had a positive total return 15 times in the 6 months before the end of each recession. And in 12 out of 30 recessions, the market still gave a positive total return. So, even if you knew a recession was coming, sticking with equities might not be such a bad idea after all. It's like going to a party you know will be boring, but still having a great time. And let's not forget, the stock market and the economy are like two siblings. They might come from the same family, but they don't always behave the same way. Just because a recession is hitting the economy, doesn't mean the stock market will take the same hit. Sometimes, the stock market has already priced in these risks, and it might even be looking ahead. When it comes to investing, it's like walking a tightrope. Too much conviction can lead to lost opportunities or capital. After all, the market doesn't just move according to data, it constantly adapts like a living organism. It's like trying to predict your teenager's mood – good luck with that! Now, let's talk tech. Tech earnings have been the market's knight in shining armor, with Apple and Microsoft holding a combined weight of 14% in the S&P 500. Plus, the consensus was for EPS to fall by 7% year-on-year, but that hasn't happened. In fact, 54% of companies have beaten consensus estimates by at least one standard deviation. And guess what? Apple and Microsoft have accounted for nearly half of the S&P 500's movement over the past year. Add the rest of the FAANGs, and you've got over 94% of the S&P 500's return. But, you might say, doesn't this narrow lead suggest that a small proportion of equities is in a bear market? Well, the bearish thesis could be countered by looking at 1997, another year when the spread gap was more than 2%. In both cases, the S&P 500's performance for the rest of the year was more than +20%. So, there's that. Looking at the S&P 500, April was the fourth consecutive month where it closed above its 10-month moving average. I mean, how cool is that? It's like the market is on a four-month winning streak at a poker game. However, that pesky 4200 level remains a strong resistance. And yes, the index's breadth is indeed narrowing, touching lows like an experienced limbo dancer. Could this be a bearish signal? It's like seeing dark clouds gather, does it mean a storm is coming, or is it just going to pass us by? The liquidity factor, which is like the lifeblood of the market, supports this bearish theory. The Fed's reserves, much like my patience with telemarketers, continue to fall. Looking at the chart, the index has always followed a drop in the Fed's reserves like a lovesick puppy. So, will it follow suit this time? Probably, but you can never be sure. While a recession may seem like a scary word, it's not the end of the world. The market has its ups and downs, but that doesn't mean we should avoid the ride altogether. Investing requires resilience, a bit of courage, and yes, some fun ways to ride it out. And remember, even in the face of a looming recession, equities may still be your best bet.  Trade safe!  -James  Coming Up Next: Is it time to finally buy the dogs of April? Find out in the article below!   SPONSORED 🔽 Sponsored [Your Chance to Get a Piece of the Crypto Pie]( Cryptos could be staging a comeback in 2023. This could be your chance to take part in a historic rally.[See the best coin to buy right now.]( [Privacy Policy/Disclosures]( Bargain Hunting: Investing in the S&P 500's Bottom-Performing April Stocks Okay folks, let's get real, the bargain bin of stocks is overflowing right now. Yes, the S&P 500 did manage to pull off a 1.5% gain last month – like a kid who somehow manages to pass a test they didn't study for – but a whole bunch of stocks were heading south. And I don't mean for a sunny vacation. Before you rush headlong into these stocks, lured by their lower prices like a Black Friday sale, let's stop and think. One question we need to ask is, are any of these stocks worth owning at any price, or are they just flashy labels with nothing inside? Let's take a closer look at three stocks that had a rather unfortunate month of April – think of them as the kids who got picked last for the dodgeball team. First up, we have First Republic, a bank that's seen better days. It's the biggest loser from last month, but it's about to be taken over by JPMorgan Chase. So, its 75% tumble isn't exactly a gold mine for investors. It's like finding a coupon for a store that's going out of business. Then we have contract pharmaceutical manufacturer Catalent, solar power tech company Enphase Energy, and the EV superstar Tesla. They all had a rough time in April, their shares falling 24%, 22%, and 21% respectively. They're like the Titanic, but could they be worth a look after hitting the iceberg? Catalent's fall comes after a warning that its productivity issues and higher-than-expected costs at some of its facilities will impact its financial results. It's like planning a road trip only to find out your car needs a bunch of repairs. Enphase Energy's tumble is also due to earnings. The company cautions that changes in California's regulation and economic malaise are hampering demand. It's like throwing a party and having half your guests cancel at the last minute. Tesla, on the other hand, drifted lower throughout the month without any clear reason. It's like a balloon slowly losing air. Lowered sticker prices to compete with rivals are eating into net profit margins, a fear confirmed when the company released its fiscal Q1 results in mid-April. But, is there a silver lining in these clouds? Could these stocks be worth buying while they're down? As with all great questions in life, the answer is... it depends. Investors are often encouraged to buy good stocks when they're on sale, like a designer dress at a discount store. But, just because a stock is cheaper, doesn't necessarily make it a good investment. It's like buying a knockoff handbag – it might look nice, but the quality might not be there. With these three stocks, it's even more confusing. Despite troubling headlines, these companies aren't going anywhere. But an investor's picks should be based on the company's potential future and the risk-versus-reward proposition of the stock. This makes bargain hunting easier, like separating the wheat from the chaff. Looking at each stock individually, Tesla is best avoided for now, Catalent is a wait-and-see prospect, and Enphase might just be a buy. Tesla's strategy for monetizing its electric vehicles remains unclear, like trying to read a map in the dark. The market is used to Tesla's healthy profit margins, which are set to be unhealthy for a while. Uncertainty is like a lead weight on a stock's price. Catalent's productivity issues are concerning, like a car making a strange noise. There may be bigger issues at play that could be harder to fix. Enphase, however, might be the diamond in the rough. Despite short-term issues, the shift towards solar-produced power is like a tidal wave that can't be stopped. SolarPower Europe predicts that global solar power production will double by 2025, while the Solar Energy Industries Association is even bolder, expecting a tripling of the U.S.'s solar power production capacity between now and 2027. This growth will create incredible demand for Enphase Energy's technology, helping people and institutions make the most of their solar panel systems. So, even with a less-than-stellar Q2, analysts believe Enphase's top line will grow by 33% this year. That's like discovering your favorite ice cream shop now offers twice as many flavors! These deeper looks at companies' unique situations might take some time, like binge-watching a new TV series, but jumping into a familiar stock just because it's down is fast and easy – and potentially disastrous. It doesn't take too long to get acquainted with company-specific matters, and the effort really pays off in the end. After all, the last thing you want is to step into the wrong trade at the wrong time – like wearing sandals to a snowball fight. So, take a moment to pause, research, and weigh the pros and cons of these stocks. Remember, just because they're on sale doesn't mean they're a steal – but with some careful analysis, you might just find a hidden gem. Happy bargain hunting!   Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. 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