Yes, You Should Be Buying Today

In today's Masters Series, originally from the May 10, 2023 issue of the free Altimetry Daily Authority e-letter, Joel compares today's economy with the market following the Great Recession... details how that crisis created a mountain of buying opportunities... and reveals why you should continue putting your money to work right now... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [Stansberry Master Series] Editor's note: Don't get lost in this financial storm... When the market is clouded with uncertainty, like we're seeing today, [most investors tend to avoid risk-taking](. But Joel Litman – chief investment strategist for our corporate affiliate Altimetry – says you can still find attractive buying opportunities in this turbulent market if you know where to look. That's why he believes you must understand how to conduct in-depth research on potential additions to your portfolio in order to profit amid this ongoing market chaos. In today's Masters Series, originally from the May 10, 2023 issue of the free Altimetry Daily Authority e-letter, Joel compares today's economy with the market following the Great Recession... details how that crisis created a mountain of buying opportunities... and reveals why you should continue putting your money to work right now... --------------------------------------------------------------- Yes, You Should Be Buying Today By Joel Litman, chief investment strategist, Altimetry The "smart money" wanted stocks to sell short... Yet we saw amazing buying opportunities ahead. In April 2009, investors were still reeling from the Great Recession. At Valens Research – our institutional arm, which powers Altimetry – our clients expected more companies to fail. They wanted to bet against those stocks. They had good reason to be afraid. That March, the S&P 500 Index had fallen to its lowest level since the mid-'90s. There were few indications that the storm would abate. All signs pointed to a continued freefall. Folks were still worried that their banks had toxic mortgage assets on their balance sheets. Credit markets still weren't fully functioning, and the effects of the credit seizure were widespread. In short, everything was a mess... and anyone in their right mind would have been looking for short ideas. It wasn't exactly revolutionary to bet that more stocks would collapse. As I'll explain today, our clients were too focused on the pessimism that pervaded the market. They ran the risk of missing some fantastic opportunities... and all they had to do was look in the right places. The current market environment reminds us a lot of what happened back then. Opportunities abound... if you do your due diligence. --------------------------------------------------------------- Recommended Links: [Bigger Than the 2024 Presidential Election?]( Two market legends agree that ONE escalating financial trend could impact your money more than the Federal Reserve's next interest-rate moves... or the upcoming 2024 presidential election results. It's a phenomenon impacting 1 in 3 U.S. stocks and could have far-reaching consequences in the weeks ahead. [Click here for more details](. --------------------------------------------------------------- [Gold Is Headed Above $3,000 per Ounce (Here's How to Play It)]( With so many strange events happening across the economy (the longest bear market for bonds since the Civil War... unprecedented bank closures... and soaring prices), it's no wonder the richest investors are loading up on gold. But what you might not realize is there's a much better way to profit from rising gold prices – WITHOUT ever touching an ETF, mining stock, or even bullion. [Find the full details here](. --------------------------------------------------------------- Investors who were watching the Great Recession unfold had good reason to be pessimistic. U.S. companies were in a rough place. Average corporate high-yield credit default swaps ("CDS") were well above 1,500 basis points ("bps")... meaning it cost investors 15% per year to protect their credit investments. When a company's CDS levels exceed 1,000 bps, we typically use that as a proxy for the market's view of risk. It tends to mean investors are pricing in bankruptcy. Even worse, net income for the S&P 500 was negative for the first time ever. And U.S. consumers hadn't even begun to repair their personal balance sheets. And the list went on... The cost of servicing household debt as a percentage of disposable income remained high. Credit-card, mortgage, and auto-loan delinquency rates were still rising. So was unemployment. We can't blame our institutional clients for expecting the worst. What they failed to consider was this... Even in the worst market crisis, there's always a silver lining. In the midst of all this bad news, we got to work. And we found opportunities hidden all across the market. When we dove into the Uniform Accounting data and used a disciplined investment process, it was surprisingly difficult to find stocks that were poised to fall. That was true despite the bleak environment. The worst news had already been priced in. For example, any company with any semblance of credit risk was trading as if the apocalypse had hit. Their prices suggested that even smart, well-run companies with little or no debt would never recover. All that bad news was precisely the reason for an incredible, looming opportunity. Given how cheap everything was trading, we saw strategic acquirers as a great bet. These companies would be able to buy small competitors at a huge discount, improve their operations, and become stronger as a result. That's just what happened with Middleby (MIDD). The company sells machines for restaurant kitchens. Think industrial-grade ventilation systems, deep friers, and dishwashers. We included Middleby in a presentation for our institutional clients in April 2009. The company made more than 50 acquisitions in the decade following the Great Recession... and its stock soared more than 1,100%. In other words, a perfect confluence of trends made for a great discount. It was also a perfect profit setup for investors who could correctly identify those trends. We're seeing a similar pocket of buying opportunities today... Of course, every market environment is different. So investors are once again wondering if this is the right time to buy... or if they should hunker down until the volatility subsides. Regular readers know that we're certainly not "pounding the table" on everything. We've sounded the alarm on areas like Software as a Service, the world of artificial intelligence, and nearly anything that has to do with real estate. Credit is tightening. Some companies are starting to have debt issues. And other market signals are flashing red. It's good for investors to be wary. Now isn't the time to start loading up on cheap stocks indiscriminately. All the same, there are buying opportunities in specific pockets of the market. You just have to look for them... and do some careful research. Regards, Joel Litman --------------------------------------------------------------- Editor's note: Joel has used forensic accounting to predict the 2008, 2020, and 2022 crashes. And he recently joined forces with Dr. David "Doc" Eifrig for the first time ever to sound the alarm about what's coming next in the markets. Joel and Doc hosted an online presentation to discuss a trend that's escalating today... one that has appeared before every market downturn. And they believe this could create a huge moneymaking opportunity in one specific group of stocks – setting the stage for potential triple-digit gains. [Catch up on the full details 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. Or e-mail info@stansberryresearch.com. 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