I previously outlined the reasons why I would be buying stocks in my personal portfolio during the COVID-19 stock market sell-off. In a nutshell, this virus is a temporary disruption and not an indication that there is something fundamentally wrong with the U.S. economy.
On March 23, the exact day the market bottomed (so far), I bought exactly seven stocks: Berkshire Hathaway (NYSE: BRK.B), Bank of America (NYSE: BAC), Alphabet (NASDAQ: GOOGL), General Motors (NYSE: GM), United Airlines (NYSE: UAL), Wynn Resorts (NASDAQ: WYNN), and Canopy Growth Corp (NYSE: CGC).
After I bought those stocks, I wrote out explanations about why I bought them for InvestorPlace, and I’ve included all those articles on Trading Common Sense below.
So far, in the three weeks since I bought them, they have all been home runs. Each of the seven stocks is up between 13% and 36%.
My InvestorPlace readers got these stock picks the week after I bought them. My Common Sense Trade Alerts subscribers (absolutely free) got email notifications of my trades in real time on Monday, March 23. That link is also where to go to confirm that I actually did purchase all these stocks on March 23 if you think I’m full of shit. I haven’t bought a single share of any stock before or since in 2020.
Now, I’m only about 50/50 on whether or not the S&P 500 has made its low for the year or whether first-quarter earnings season will send it to new lows.
And for those of you wanting to know the secret for how I timed the market bottom on March 23, the explanation is simple: it was mostly luck. I mean, I got a general sense that stocks were oversold at the time and that the market was overreacting to the COVID-19 threat, so I guess it wasn’t entirely luck. But I never would have guessed that was (potentially) the exact market bottom nor would I recommend anyone try to guess the next market bottom if the S&P 500 makes new lows later this year.
If you want to get real-time alerts any time I buy or sell stocks, sign up for my Common Sense Trade Alerts absolutely free. And if you want to learn how to analyze the market like I do, my shameless pitch for my book is included below.
Stay healthy out there.
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!