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Investors Shouldn’t Be Afraid of a Holiday Sale – They Should Expect It!

Consumers love sales, with one exception. If something you really want goes on sale, most people will rush to buy. When stocks go on sale however, most investors will freeze up, expecting prices
Jordan Kimmel is a Portfolio Manager for Gitterman Wealth Management. Phone: 848-248-4290Email: [email protected] With over 30 years of experience in the financial services industry, both as a retail broker and fund / portfolio manager, Jordan is the creator of the FACTS® Stock Selection Process, which employs a unique holistic and quantitative analysis on the integrity and sustainability of over 2,000 US companies. Jordan’s FACTS® method identifies organizations with: Financial Strength Accounting Conservativeness Corporate Integrity Transparency Sustainability / ESG (Environmental, Social, and Governance) Metrics FACTS® analyzes the largest and most liquid companies, and also incorporates Jordan’s Magnet® Investment Strategy, one of the first strategies of its kind to combine the best tenets of value, growth, and momentum of company fundamentals. Magnet® has been licensed to several leading institutions around the country, and Jordan appears frequently on several major financial TV networks, including CNBC, Fox Business, Bloomberg, and ABC News, among others. He has also been quoted extensively in several publications, including Forbes, The Wall Street Journal, and U.S. News & World Report. He is the author of two books, the most recent being “The Magnet Method of Investing.” (Wiley, 2009).
Jordan Kimmel is a Portfolio Manager for Gitterman Wealth Management. Phone: 848-248-4290Email: [email protected] With over 30 years of experience in the financial services industry, both as a retail broker and fund / portfolio manager, Jordan is the creator of the FACTS® Stock Selection Process, which employs a unique holistic and quantitative analysis on the integrity and sustainability of over 2,000 US companies. Jordan’s FACTS® method identifies organizations with: Financial Strength Accounting Conservativeness Corporate Integrity Transparency Sustainability / ESG (Environmental, Social, and Governance) Metrics FACTS® analyzes the largest and most liquid companies, and also incorporates Jordan’s Magnet® Investment Strategy, one of the first strategies of its kind to combine the best tenets of value, growth, and momentum of company fundamentals. Magnet® has been licensed to several leading institutions around the country, and Jordan appears frequently on several major financial TV networks, including CNBC, Fox Business, Bloomberg, and ABC News, among others. He has also been quoted extensively in several publications, including Forbes, The Wall Street Journal, and U.S. News & World Report. He is the author of two books, the most recent being “The Magnet Method of Investing.” (Wiley, 2009).

Consumers love sales, with one exception. If something you really want goes on sale, most people will rush to buy. When stocks go on sale however, most investors will freeze up, expecting prices to go even lower. Strangely enough, when you see stock prices going much higher, you see many investors get even more interested. This behavior seems silly when you step back and observe it, and it is exactly what hurts many investors. Be prepared for an upcoming “Holiday Sale” in the stock market! Don’t be afraid when the sale comes. Take advantage of it.

While I clearly expect a holiday sale for the stock market, I am not sure which holiday it will fall on. It might be very soon–around the High Holy Jewish Holidays, maybe closer to Halloween or even Thanksgiving. My guess is sooner rather than later. When it comes, I expect a brief 10-15% mark down, not a 40% clearance sale. I think you should treat a 15% mark down as an opportunity to buy; not the start of an upcoming market rout.

It is a good time to make your “wish list.” If there are any companies you wish you could buy shares of at a lower price, the ones you were saying, “I wish I had bought at a lower price,” get ready to buy them when the sale comes. Learn to control your emotions and buy during sales, don’t be afraid of them.

Longs: ARRIS Group, Inc. (ARRS) , Emerge Energy Services LP (EMES) , San Juan Basin Royalty Trust (SJT)

Shorts: NetSuite Inc. (N) , Teck Resources Ltd. (TCK) , AdvisorShares Ranger Equity Bear ETF (HDGE) , Direxion Daily Small Cap Bear 3X ETF (TZA)

By Jordan Kimmel, Chief Investment Officer at Investview, Inc. (INVU). 

 
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