Most investors view pullbacks or price declines in stocks as a sign to stay away from them or exit their positions and never come back. They think that if a stock is going down there always must be a legitimate reason for this to occur.
But recently, I posed the following question to refute this mentality:
“What if a pullback in a stock is actually an opportunity to buy it because the stock was unjustly punished and should not have gone down in the first place?”
My research found that if you can identify stocks that should not have retreated in the first place, you can build small portfolios that quickly reward you with decent returns. You can access my latest portfolios by clicking here.
In 2016 I built two “Pullback Portfolios” that quickly returned aggregate peak returns of 35.6% and 36.4%, respectively.
The best part is that each of them had no more than 6 stocks. Easy to keep track of. Easy to stay disciplined.
In 2017, Portfolios 3 and 4 are still playing out. They’re off to a great start, so I can’t wait to share them with you.
On the surface, the investment community punished the stocks because of either things that were written in their press releases or things that management said in conference calls. Often times, text or words are misunderstood.
For me, it’s WHAT THEY DON’T SAY that compels me dig a little deeper to find nuggets of valuable information in my research.
In the end, other questions that you must ask are:
- Why did the stock go down in the first place?
- Are all the fundamentals still intact such that the stocks will bounce back?
…and most importantly…
- Are there things that other investors missed that would have led them to the conclusion that these stocks WILL recover their losses?
As soon as I feel like the investments have played out, I let my subscribers know that I am closing them out, getting ready to pounce on the next group of “Pullback” stocks that I think are ripe for a recovery.
So that you can immediately benefit from my strategy, Subscribe for FREE to see the past portfolios and part of the current portfolios, along with the returns. Please be aware that access to these portfolios is valued at $300 as part of my premium subscription service, but today you can see them for free.
P.S. When you subscribe, I’ll be sure to send you even more material on exactly how and why I make my decisions to profit from pullbacks.
This is a communication from GeoInvesting, LLC.
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