It's been another rough week for the markets. All the usual suspects are in play - mounting inflation, recession fears, supply chain problems - and now things are compounded by mixed second quarter earnings calls across the board and fears of a historic 100-point rate hike from the Fed.
That means investors need to look really hard at what they're holding onto. A lot of the darlings of the previous bull market aren't just losers right now, they're toxic losers, sitting like deadweight in a portfolio and practically guaranteeing further losses.
I'm going to make it easy: you need to sell those now. And the way you find a toxic loser is very simple - get back to the basics. Companies with high valuations running on debt are going to sink you, and you need to replace them with companies that are showing solid profit margins, solid revenues, and that make or sell something people need (not want - need).
My readers have been asking me about certain stocks that are sitting near their record lows, but unfortunately, most of them fall in that toxic category. I did find one winner in the bunch, though - a FAANG stock that's weathered the beating tech stocks have taken surprisingly well.
Check out this video for the tickers...
As the bear market continues, investors need to keep looking for more opportunities to invest in companies that do well during recessions. And I may have found the opportunity of a lifetime.
I recently sat down with a man who has more than 40 years of buying successful businesses under his belt and beat Warren Buffett 3-to-1 during the 2008 Great Recession. One of his last deals made a 5,135% return, and he's got a new project on the horizon.
Investors who act now could potentially earn incredible returns while paying a significant discount.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.