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This Part is Still Scary …Even if You Saw This Movie Before…

We all have emotions. Even if you try to operate in the stock market without any emotion, it is really difficult. Even if you fully expect an overdue correction, when it does finally arrive, you
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).

We all have emotions. Even if you try to operate in the stock market without any emotion, it is really difficult. Even if you fully expect an overdue correction, when it does finally arrive, you still see most market participants get nervous. Market corrections are scary. Watching your gains disappear and your account value shrink is difficult to handle and just like a scary movie–even if your saw it before–it is hard to control your emotions.

Over the last several weeks I tried to give our investors advanced warning of a textbook correction that was unfolding. The leadership started to get narrow, the advance/decline turned down, the new high/new low lists started to flash warning signs- all signs were in place that the market was ready to provide a real scare. Even though many individual stocks are already at my “wishlist” prices, I think the high volume down spike still needs to happen. I am very confident this correction will be a "Knockdown, not a Knockout” – but strangely the market has a way of clearing out weak-handed investors just prior to a major advance.

Judging by the tone of the newspapers, I expect we will see this downside clear-out move play out fairly quickly. Now is like the time in the scary movie when the music gets loud and weird. This is when, if you saw this movie before, this part is still scary. Buy the fear when it’s really scary.

Long: Emerge Energy Services LP (EMES) , Omega Protein Corp. (OME)

Shorts: NetSuite Inc. (N) , Chico's FAS Inc. (CHS)

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

 
 
If you don't feel that U.S. culture (and much of the world in different ways) is in turmoil, you are not paying attention.
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