Keep Your Contrarian Spirit in Check

In today's Masters Series, adapted from the March 23 issue of the Chaikin PowerFeed daily e-letter, Marc explains why uncertainty continues to fill up markets... details how investors can avoid massive losses amid this ongoing volatility... and reveals how folks can uncover buying opportunities as this chaos drags on... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [Stansberry Master Series] Editor's note: [Don't chase profits without a guiding light](... The markets have plummeted over the past few years due to rampant inflation and heightened geopolitical tensions. Some desperate investors have refused to flee stocks in hopes of earning huge gains once the downtrend reverses. But this decline could last longer than most people think... That's why Marc Chaikin, founder of our corporate affiliate Chaikin Analytics, says it's critical for investors to avoid rushing into contrarian plays in order to survive this bear market. In today's Masters Series, adapted from the March 23 issue of the Chaikin PowerFeed daily e-letter, Marc explains why uncertainty continues to fill up markets... details how investors can avoid massive losses amid this ongoing volatility... and reveals how folks can uncover buying opportunities as this chaos drags on... --------------------------------------------------------------- Keep Your Contrarian Spirit in Check By Marc Chaikin, founder, Chaikin Analytics Regular readers know that I've worked in finance for more than 50 years... Because of that, I know some of you are on the verge of making a dangerous bet. You see, when the market is experiencing a lot of turbulence, it's tempting to act like a contrarian. And the news can't get any worse for financial stocks these days, right? Baron Rothschild comes to mind. He was a British nobleman and banker in the 18th century. And he's famous for saying... The time to buy is when there's blood in the streets. But there's a catch... --------------------------------------------------------------- Recommended Link: [Bank Collapse: FREE Emergency Briefing on March 28]( One Wall Street titan predicted this month's bank runs five months ago, plus the market sell-offs in 2022 and 2020. And on Tuesday, March 28, he's sharing where the stock market's going next... what it means for your money in 2023... and the ONE and ONLY trade he says you must make this year to protect and grow your wealth. [Click here to learn more (including a free recommendation)](. --------------------------------------------------------------- A "blood in the streets" sector doesn't always spell opportunity. Now, I don't pretend to know every twist and turn in the markets. But as I'll show you today, the Power Gauge is telling us to wait until the dust settles in the financial sector... As a whole, the financial sector is pretty bleak today. We can see that through the Financial Select Sector SPDR Fund (XLF), an exchange-traded fund ("ETF") that tracks this space... We've talked about the Power Bar ratio before. It's part of our Power Gauge system. And it helps us compare the number of favorably and unfavorably ranked holdings at any time. As you can see, only four stocks within XLF have a "bullish" or better rating today (marked in green below). And the Power Gauge is "bearish" overall on this ETF. Take a look... The banking subsector is even worse... We track this space using the SPDR S&P Bank Fund (KBE). It's down around 20% so far this year. And not surprisingly, 30 of its holdings earn a "bearish" or worse rating today... On top of that, the damage is now hitting regional banks... This group is calling on the Federal Deposit Insurance Corporation ("FDIC") for help. It hopes that the FDIC will insure all deposits – even those above its historical $250,000 limit. The SPDR S&P Regional Banking Fund (KRE) only has one "bullish" stock out of nearly 140 holdings with Power Gauge ratings. It also earns a "bearish" overall grade today. Once again, the Power Gauge shows us why we want to stay far away from this subsector... KRE is down 28% this year. That's a staggering loss. And there's no sign of relief yet. Put simply... be very careful if your contrarian senses are tingling for financial stocks. The market includes good opportunities today. But this space isn't offering many of them. Do I believe that banking and other financial stocks will eventually turn around? Absolutely. And when they do, it could lead to great opportunities for investors. But now is not the time to rush back in... The proverbial knife is still falling. And investors who try to catch it will likely get cut. We need to focus on sectors that are producing plenty of "bullish" opportunities... Right now, the top subsector in the Power Gauge paints a very different picture. It currently includes 22 "bullish" or better stocks. And it has zero "bearish" or worse stocks. Our 20-factor Power Gauge system is based on my five decades of Wall Street experience. It's specifically designed to help us navigate tough market environments like this one. Financial stocks are just too risky right now. Avoid them until the dust settles. Good investing, Marc Chaikin --------------------------------------------------------------- Editor's note: With uncertainty clouding the markets right now, many folks are unsure about what to do with their money as this bear market drags on. That's why Marc is sounding the alarm about what's coming next... Marc is hosting an online presentation on March 28 at 8 p.m. Eastern time to discuss where he believes the markets are headed in 2023. Plus, he's revealing the one trade investors must make this year in order to protect and grow their wealth. [Click here to get the full details](... --------------------------------------------------------------- Recommended Link: [It's Time to Turn the Tables on Wall Street]( The top 1% grew their wealth by $7 trillion following the 2008 crisis... and made $1.7 million for every $1 YOU made during COVID-19. Now, it's playing out all over again. See their next move [here](. --------------------------------------------------------------- You have received this e-mail as part of your subscription to Stansberry Digest. If you no longer want to receive e-mails from Stansberry Digest [click here](. Published by Stansberry Research. You’re receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. 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