Okay, Time to Buy the Dip Now? It sounds like I've laid out a pretty good case for not worrying too much about the coronavirus. And as of Friday, we got our 3.6% pullback in the S&P 500 as well as a 3.3% hiccup in the Nasdaq 100. Then Tuesday brought a big pop in the Nasdaq to new all-time highs on the back of a surge in Microsoft shares. This move prompted me to make a couple of juicy stock buys I'd been waiting for while their shares were still on sale. But there is still a big unknown lurking in the data from China. According to The Lancet, coronavirus forecasting models indicate there could be as many as 200,000 infections that are not yet revealed by symptoms, confirmed medically, and reported to authorities. This projection is based on the current transmission rates and doubling of infections every 5-6 days. This sets up a potential surprise for investors when all of a sudden more data is available and the true size of infections is known. Imagine the day when we learn that there are over 100,000 people infected. Is the market ready for that surprise? While this conjecture about unknowns could turn out to be wrong, I always insist on thinking in probabilities. Right now, the odds favor this pandemic getting far worse before it gets better and I don't think the market is ready for that. My Plan: Make a Shopping List Whether or not we get another 5% down leg in the market, I'm getting ready to buy my favorite Technology and Healthcare stocks, looking for new highs in Q1 and into Q2. Some of these companies play in both realms, like Gilead the Biotechnology stock. How do I get ready? With a shopping list. I already know which stocks I want to buy and in what price range I'm ready to place my order. And my plan isn't built around one magical day when I call the bottom. I start scaling into some positions early and gradually, especially the ones I think will bounce hardest and first. Again, I'm not calling for a big double-digit correction in February. But when the S&P index pulls back 5% after a strong run, it means lots of midcap and smallcap stocks will be down 20-40%. And that's a very attractive opportunity for an investor-trader like me. Have you started building your shopping list yet? If not, now is a great time to get started. How to Capitalize on 2020's Most Exciting Opportunities As mentioned above, I'm keeping a close eye on the Technology and Healthcare sectors. And Biotech - where these sectors overlap - could be the fastest way to grow your wealth in 2020 and beyond. I just updated my special report called The Century of Biology: 7 Biotech Stocks to Buy Now to help you profit from the booming world of Biotech. You're invited to download it today. Scientists are discovering exciting new ways to prevent and treat thousands of diseases. These discoveries are mind-blowing, from immuno-oncology, which enables the body to cure many types of cancer by itself, without chemotherapy or surgery... to gene editing, which can slice out segments of DNA that make us vulnerable to HIV/AIDS, muscular dystrophy and other diseases. The Biotech sector is expected to surge beyond $775 billion in size by 2024. What better way to invest than in projects that can make improve human life and health on a global scale? My recent recommendations in this sector include gains of +43%, +83% and +164% gains in as little as 9 days.¹ While I'm bullish on the Biotech sector in general, there are 7 specific stocks I believe are poised for particularly strong upside in the coming year - especially if the market pulls back 3-6% in the near term. You'll learn all about these breakthrough stocks in The Century of Biology Special Report. I encourage you to download it now. Please note that the deadline to download this report is midnight Sunday, February 9. See these Biotech stocks right now » Good Investing, Kevin Cook Senior Stock Strategist
Kevin, Senior Stock Strategist at Zacks, is a leading expert in biotech and medical stocks. He provides commentary and recommendations for Zacks' investment portfolio, Healthcare Innovators. |
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