Editor’s Note: Today’s article was written by our dear friend and the CEO of TradeSmith, Keith Kaplan.
Liberty Through Wealth‘s publisher, The Oxford Club, has worked with TradeSmith for decades now. And if you’ve attended any of the Club’s events, you’ve likely visited the TradeSmith booth and heard Keith speak.
But if you haven’t had the privilege of meeting Keith and learning about TradeSmith’s innovative investor resources, you’ll soon have a chance to…
TONIGHT at 8 p.m. ET, Keith will sit down with our very own Alexander Green and Chief Income Strategist Marc Lichtenfeld to discuss how to boost your Oxford Club returns by as much as six times in 2022.
And don’t worry, there’s still time to sign up!
See you this evening!
– Rachel Gearhart, Associate Publisher
Last year, toward the end of February, before the coronavirus became COVID-19, I was gearing up for a week of multiple trips and a long time away from home.
Then, around 7 p.m. on Thursday, February 27, 2020, I got this big, bearish alert from our system.
It basically said, “Run for the hills and sell your stocks.”
I had no idea at the time that the coronavirus would go on to become COVID-19 and impact all our lives in the way it has – nor did I know exactly how markets would react to what was coming.
But I heeded the system’s signals, and the very next day, I sold nearly all my stocks.
That weekend, a quick stop at Target with my family gave us an early glimpse into the world of panic-buying and hoarding as we noticed a woman with a cart FULL of nothing but Clorox wipes.
The things my wife and I witnessed that day were so impactful that we wound up buying way more than we had intended and stocking up on stuff we thought we’d need as well. I still have four boxes of Cheerios in my pantry from that shopping trip.
Clearly, there was panic in the air, and we were just starting to see and feel it for the first time.
On Monday, March 2, 2020, I flew down to Florida for a meeting with a group of 50 of my peers where each of us would pitch our best and biggest investment ideas.
Person after person was pitching greedy parts of the market that they believed were ready to soar. My turn to present came Tuesday morning…
I got up on stage and said, “I sold almost all my stocks on Friday.”
I urged people to be safe with their investments and consider warning their subscribers that a bear market was rapidly approaching.
I even showed them proof as to why I knew we were headed toward a bear market – one that would catch everyone by surprise and destroy years of wealth building.
I showed them the alerts I received and then how back-testing showed these alerts had been accurate over the last 20 years.
I was laughed at and told not to panic. Not a single person in the room wanted to hear what I had to say. And I don’t blame them; the CNN Fear & Greed Index at the time was indicating “extreme greed.” Why would they want to hear a bearish alarm?
But I knew that these alerts are based on proprietary algorithms we created years ago and routinely test and update. They’re based on momentum and short- and long-term trends.
I was so happy to get out of those meetings.
Obviously, a lot has changed since then. While we experienced the fastest bear market in history, we also experienced one of the fastest recoveries in the history of the markets. And we haven’t looked back but for a few small setbacks.
In 2020, my personal portfolio was saved a huge loss thanks to the indicators I got.
And nearly a month later, on March 27, 2020, our indicators did it again, alerting me to a bullish setup in the markets.
This signal would have been almost always right in more than 40 years of back-testing…
By this time, the Fear & Greed Index’s score had plummeted to “extreme fear” levels and people were nervous. Heck, I was nervous! But again, I decided to take action. I started gobbling up stocks that had big pullbacks and were noted “healthy” in our system by their green designation.
Boy, was that the right decision!
Recently, the Fear & Greed Index has indicated extreme fear. People are nervous, but our indicators are bullish. So naturally, I’m bullish too – for now.
As you can tell, I love our products and can’t wait to reveal more to you in my special 2022 Stock Market Fast Track presentation.
Enjoy your Wednesday,