With the Dow suddenly plunging 6% this week, investors are rightly wondering if we're on the verge of another stock market crash.
8 Reasons We're Headed for Another Stock Market Crash
Unfortunately, there are some reasons this could be the case.
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COVID-19 Stock Market Crash
How to Make Money When Stocks Go Down with Options
Many investors believe that when the stock market falls, everyone loses money.
That's simply not true.
In fact, for the smartest traders, a downturn is just another opportunity.
The trick to making money when markets fall is options trading.
We're going to show you exactly how to do that today as the Dow Jones has plunged 6% this week as coronavirus fears rise.
We're going to make money here by targeting one sector we think is going to take the worst of this turbulence.
The Best Call and Put Options Trades to Make Now
They say stocks take an escalator up and an elevator down.
In other words, they tend to move quickly when they fall.
You've certainly seen the truth in that old saying this week as stock have taken a plunge.
But if you do your homework, you can be calm and collected while you position for the rebound.
What you don't want to do is try to time the end of the current pullback.
That's hard for even the pros.
Instead, we've got two options trades – call and a put trade – for you that can help you take advantage of the current downturn without taking on too much risk.
The 2 Best Value Stocks to Buy Right Now
This has been one of the stock market's most unpredictable years ever.
With stocks swinging dramatically higher and lower all year and uncertainty at all-time highs, investors aren't sure whether to buy or keep their powder dry.
But it's actually the perfect time to buy value stocks.
3 Stocks to Sell Right Now
Although we have all loved the runup off the March lows, the decline's memory is still with us.
That gut-wrenching 34% rapid decline was painful, and more than a little scary.
And after reaching an all-time high in early September, the Dow has been on a roller coaster.
The index is down 6% since then, including a 500-point loss on Monday.
You can expect that sort of volatility to continue with the election coming up and the coronavirus still weakening the economy.
Now is an excellent time to look at your portfolio and clear out any deadwood that could turn into a disaster if the selling gets worse in the fourth quarter of 2020.
That's why I'm giving you my top three stocks to sell right now.
Here's Another Buffett-Worthy Gold Play
Gold is near $2,000-plus all-time highs, so it's no surprise that investing legend Warren Buffett is riding alongside gold's bull run. But nobody seems to know about another class of gold plays to make right now, giving us more upside potential in this specific stock…
The Long and the Short of It: These Two Plays Are the Cure to Our Vaccine Blues
With the U.S.
government spending billions towards a COVID-19 vaccine, it's been a gold rush for insiders speculating on the winner of the vaccine race.
But our Garrett Baldwin's more interested on these two short- and long-term trades that'll get a huge bounce once a vaccine emerges…
How to Avoid the Market’s Stimulus “Kodak Moment” and What to Do Instead
Back in my college days as a chemical engineering student, I found myself driving down to Kingsport, Tenn. I was due to start a cooperative education job at the Eastman Kodak chemical plant there.
I remember looking at the biggest chemical plant in the world with awe (13,000-plus employees at the time). Kodak sold off its chemical business – now Eastman Chemical – in 1994.
This former employer of mine has been in the news a lot lately. Through a $765 million loan from the Trump administration, it was set to revive the U.S. pharmaceutical industry.
As the news hit and the Robinhood trading crowd piled in, shares soared from $2 to more than $60 in two short days. Hope and optimism ruled.
A few days later, reality set in. The stock cratered. It's now around $10 and trending down.
This is an example of what we in the trading world call "Buy the Rumor, Sell the News."
When a rumor first hits the news feeds, it creates excitement and optimism. Stocks rise, and other traders don't want to miss out.
But things are rarely as rosy as they look at first glance. Once reality sets in, excitement gives way to reason. People start looking into the actual details of the matter.
And more often than not, it turns out that in their excitement, traders overshot.
Kodak's pharmaceutical loan was one example.
But that's small potatoes compared to what's coming next. Kodak was just one company.
This time, stock markets as a whole could be in for a "sell the news" moment. That's why today, I'm going to show you how to avoid the hype and what to do instead to come out on top… Full Story
Profit on This Biotech-Enabler That’s Suddenly a “Buy”
"Lead, follow, or get out of the way."
This is one of those well-known aphorisms that's been around forever – though its originator is unknown.
Truth be told, it doesn't matter who said it first. It's a great bit of advice.
Especially as we interpret it.
In our investment work here at Money Morning, we always seek to lead Wall Street and the rest of the packrat investment crowd.
We never follow, especially since "the crowd" tends to be indecisive, late to the gun – or flat out wrong.
And we always get out of the way – sidestepping the dust-rising thump that's an inevitable result of the miscues and sins of the Wall Street Goliath.
It's a simple formula. And a successful one.
And it's the reason we keep outperforming "the crowd."
Like the 2,067% gain on biotech Galapagos NV, the very first stock I recommended on the very first day I published my Member-based service, Private Briefing, back in August 2011.
My readers also pulled down peak gains of more than 2,892% in Nvidia, 2,828% in Advanced Micro Devices, 818% in biotech buyout Pharmacyclics, and more.
Today, I've decided to share my latest insight on one of my big biotech winners with Money Morning readers because the opportunity is too good to keep to ourselves. And since my colleague Michael Robinson recently talked about 2020's record-crushing biotech IPOs, it's the perfect time to share this.
The company I'm showing you today is essential to biotech stocks. It's a "biotech-enabler" that's zoomed 1,755% since I first told my readers about it back in June 2013.
In 2013, it was trading at $8.14.
It closed July 30 at $151.25 – not long after Investor's Business Daily said the stock had entered a "Buy Zone."
True, but where were they seven years and 1,755% ago?
Of course, what's important now is what comes next – and it's clear this stock's run isn't over… Full Story
Biotech (and Its IPOs) Will Crush Records in 2020 - Here's How to Profit
I'll come right out and say it: Every investor should be doing their level best to position themselves at the epicenter of biotechnology – pharmaceuticals – right now.
These stocks are leading a soaring stock market, particularly the NASDAQ Composite, which is at all-time highs. Of the index's 10 biggest gainers at midday yesterday, half were biotechs.
Obviously, the race to find a vaccine or even a proven therapy for the novel coronavirus pandemic is a huge driver of the profits here. My paid subscribers recently got the chance to book 375% gains on half of one of our vaccine research plays, and took 70% in profits on another.
But there's much more going on.
The sheer amount and volume of capital pouring into this sector like a firehose – it's nothing short of breathtaking.
I'm going to show you my favorite, low-risk way to tap that immense growth.
But first, you have to see some of these numbers… Full Story
But first, you have to see some of these numbers...