Trading Tips

Buy the Post Bubble Collapse

June 18, 2019
Trading Tips
Buy the Post Bubble Collapse
Chapters
Trading Tips
Buy the Post Bubble Collapse
Jun 18, 2019
Trading Tips
While buying into one seems like the right idea at the time, usually under the guise that “everyone else is making money!,” investors can often get better prices waiting for the bubble to burst.
Show Notes

While the overall market is great at consistently building wealth over long periods of time, individual sectors and stocks will have a far more volatile time. Capital moving from one area to another quickly can often lead to huge overvaluations that then result in drops that are just as large.

In Wall-Street speak, this move far outside the norm is a bubble. While buying into one seems like the right idea at the time, usually under the guise that “everyone else is making money!,” investors can often get better prices waiting for the bubble to burst.

Tech stocks slid an average of 80 percent after the tech bubble in 2000. Buying surviving companies like Microsoft, Apple, and Amazon then would have led to tremendous wealth creation.

Housing prices, in terms of price to income, had a bubble of their own, and in many markets housing prices fell by at least 50 percent. Buying a second home as a rental a decade ago would have created a lot of wealth—and income—for someone without having to even touch the stock market.

Today, one of last year’s bubbles, in the cannabis space, seems to be getting close to a bottom. Many of the players, big and small, have fallen 70-80 percent from their highs or more. And even tobacco stocks have struggled here, on news that they don’t want to get into the space yet!

However, the fear right now, after the collapse, is a good sign that it’s time to buy. There may not be a rapid rise here again like there was during last year’s bubble, but today’s prices are so depressed that they represent a good long-term entry price in a rapidly-developing new market sector.

Not sure the best way to get started?  Follow these simple steps to hit the ground running...
 
Step #1 - Get These FREE Reports:
 
Warren Buffett's Top 5 Stocks: https://www.tradingtips.com/warren-bu...

The Ultimate Guide to Options: https://optionsprofitsdaily.com/ultim...

5 Monster Dividend Plays: https://www.investingsecrets.com/5-di...

Step #2 - Join Our Premium Advisories:

The Next Superstock: https://reports.tradingtips.com/mirac...

Triple Digit Returns: https://reports.tradingtips.com/pot-m...

Step #3 - Connect With The Community:
Trading Tips Official Facebook Group: https://www.facebook.com/groups/tradi...



×

Listen to this podcast on