The Market Is Crashing. Here’s What We’re Doing

Posted by Iain Butler - Stock Advisor Canada via Motley Fool

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Japanese stocks are in a “correction”. U.S. stocks plummeted yesterday and are down 5% in 2014. Emerging markets are a mess. The VIX, a “fear” indicator, jumped 9% yesterday to its highest level in months.

Fellow investors, there’s a lot out there to make us anxious. A lot of uncertainty. A lot that could go wrong …

In a moment, I’ll share with you how me and my team at Stock Advisor Canadaare preparing for what happens next — be it a “correction” or a “crash” or something else — and how you can join us.

But first, I want to share an epiphany I had yesterday …

Just as the sell-off in the markets began heating up yesterday, I kissed my wife and kids and set off for Toronto’s Pearson airport. My destination: Fool Global Headquarters, located outside Washington, D.C.

I’ve been to Fool HQ plenty of times. What struck me this morning as I was talking stocks with Andy Cross, the Fool’s Chief Investment Officer, is that among Foolish investors, good days and bad days elicit the same reaction.

In good times and bad, Fools keep perspective. There’s no panicking among the analysts when sell-offs happen. It’s all about calmness and composure.

Which is how you can take advantage of terrific opportunities when they present themselves …

A quick quiz for you: Is the following true or false?

 

  • (Poor Chinese manufacturing data) + (Weak Argentinian Peso) + (Fed tapering) = S&P/TSX Composite down 447 points over a 7-day stretch

The answer: We don’t know!

 

Nobody does. But that’s the equation that many are using to explain the market’s tumble over the past week or so. 

In our mind, there’s really only one thing to do when the market goes into one of these slides. It’s the secret to how, at Stock Advisor Canada, we’re preparing for a market correction.

We’re hoping and praying that it continues!

The Stock Advisor Canada team loves it when this happens!

You may be scratching your head right now and wondering what’s gotten into me. Let me explain …

As long-term investors that plan to be buying and holding stocks for many, many years, it shouldn’t take a Fool to see that buying when prices are low(er) is better than putting our hard-earned savings to work at higher prices.

What we’re doing

Earlier, I promised to detail how my team and I at Stock Advisor Canada are preparing for what happens next, whether or not a correction comes … as well as how you can do the same:

1. We’re loading up our watch list

I have several stocks I’m “watching” — businesses that I like, but would like a lot more in a pullback! — and I’m adding more as the markets drop.

You see, in a declining market, stocks are often sold indiscriminately.

As a stock owner, it can be frustrating to see great businesses fall just as hard as lousy ones. But as a stock buyer, falling markets present a fantastic opportunity.

Stock Advisor Canada analysts have identified a half-dozen terrific stocks that we believe will beat the market over the long haul. If you’re looking to take advantage of a falling market, these two resources are a great place to start:

Top Stocks 2014: The Canadian Investor’s Guide to Outsmarting the Market Today — our new members-only premium report featuring a diverse collection of businesses.

Looking for dividends and income? Top Stocks 2014 has a stock with a near-7% yield. Looking for a blue-chip stalwart? We’ve got one for you. Growth? Check out the small Canadian company we’ve recommended that has huge margins.

This report gives you a lot more than just company names and ticker symbols. Each of the five Top Stocks 2014 write-ups details the big picture, the buy thesis, and provides explicit guidance on the price at which you might consider buying.

An Out-of-This-World Canadian Growth Stock — this report focuses on a single Toronto-based company that has gotten the stamp of approval from none other than Motley Fool co-founder David Gardner.

In it, you’ll get the “buy thesis” for this dynamic growth stock that started small in 1970s Toronto — and is now a major player in the entertainment industry. 

2. We’re NOT trying to time the market

The only thing tougher than trying to predict a stock market crash is predicting a stock market rebound. 

Or to put it more eloquently: “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” That’s according to famed mutual fund manager Peter Lynch, one of the legends of the money management industry. 

As Fools, we believe in bottom-up, long-term investing. We believe in adding money to stocks when you have it — not when you think we’re at a “bottom” or have hit some momentum landmark.

As another famous investor said, the best time to invest is when you have the money. 

That’s why our Stock Advisor Canada service presents our two TOP stock ideas every single month. Our analysts will provide you the information you’re looking for … with our two top stock recommendations of that month — fully vetted and fully explained. So you can decide for yourself whether you want to own the companies we’ve recommended.

But Foolish investing isn’t just “buy and forget.” Stock Advisor Canadafeatures Weekly Updates — so that once a stock’s been recommended, we keep you up to date on our views and deliver them directly to your inbox. 

That’s right. We don’t simply throw you ideas and forget about them. We keep you up to date with what you own.

Occasionally, for good reasons or bad, we’ll also issue official sell recommendations – because we don’t only want you to know what to buy… We also want you to know when you should sell what we’ve recommended. So we provide our members with timely sell recommendations whenever we decide a stock is no longer worth owning.

3. We’re seeking “motley” opinions and perspectives

Community is core to The Motley Fool. In times of market turmoil, we like to seek out others to get perspectives we may not be considering. In other words, we want “motley” opinions on our stocks and our investment thinking.

And we can offer you the same. In fact, if you click here to become a member ofStock Advisor Canada today, you can participate in tomorrow’s “Stock Advisor Canada Analyst Town Hall,” an open, two-hour live chat during which YOU can ask our analysts any investment-related question on your mind.

Want our analyst team’s opinion on specific sectors, stocks, or strategies? Tomorrow, all Stock Advisor Canada members are invited to come ask us their most pressing questions!

But there’s more than just this special event. Our service also offers discussion boards, where you are never alone as a Fool. On our boards, you can ask questions, post thoughts, and interact with our Foolish analysts and other members. 

We also offer a members-only “Ask the Fool” feature, where you can send the team questions and have them answered directly via email.

Your next move

At Stock Advisor Canada, we don’t believe in predicting things that cannot be predicted. We focus on finding excellent businesses trading at fair prices.

We tell our members that if we can find great businesses, hold them for the long term, and have the right temperament along the way, we’ll put the astounding power of the stock market to work in our favour. 

I hope you’ll join us today. If you click the button below, you’ll be on your way to downloading our terrific premium reports, Top Stocks 2014 and An Out-of-This-World Canadian Growth Stock. You’ll get an invitation to tomorrow’s Analyst Town Hall, our two-hour open chat during which you can ask our analyst team any investment-related question you please.

You’ll get all this and a year’s worth of our very best stock recommendations — 24 in all — for just $99 … a remarkable 67% off our list price ($299)!

Never fear

And when you subscribe to Stock Advisor Canada through this offer today, you’re immediately protected by The Motley Fool’s 30-day FULL money-back subscription guarantee.

Because at The Motley Fool, we stand behind every piece of advice, insight, and recommendation we make, with 100% confidence. That’s why your complete satisfaction is guaranteed or your money back!

If you’re not bowled over by the service we provide — by our monthly recommendations, our premium reports, our Analyst Town Hall tomorrow, our discussion forums — simply cancel at any time within your first 30 days and we’ll refund your subscription fee in full. That’s how confident we are that you’ll be delighted by what Stock Advisor Canada has to offer you and your portfolio.

But I’m confident that once you have a closer look at Stock Advisor Canada, you’ll like what you see. Click below to find out:

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Sincerely yours,

Iain Butler
Adviser, Stock Advisor Canada 

P.S. Be sure to act now — you won’t want to miss tomorrow’s Analyst Town Hall!

 

 

 

 

Disclaimer: The Motley Fool is not a registered investment advisor or broker/dealer. Any information, commentary, recommendations or statements of opinion provided here are for general information purposes only. It is not intended be personalised investment advice or a solicitation for the purchase or sale of securities. The information contained in this publication are obtained from, or based upon publicly available sources that we believe to reliable, but The Motley Fool makes no warranty as to their accuracy or usefulness of the information provided. Please remember that investments can go up and down. Past performance is not indicative of future results.

  

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