Start the conversation
Editor's Note: Downturns are scary, but companies in Keith's Unstoppable Trends – like the pick he shares below – will weather the storm. By joining his Total Wealth newsletter, you can learn more about these trends, plus get access to all of his strategies, picks, and analysis, free of charge – just click here – there's no charge!
Today, we're going to take a page out of one of the greatest playbooks in history – that of Sir John Templeton – to show you how you can profit from this technical mess.
You've heard me talk about him before – but just in case that's a new name for you – Sir Templeton was known for "buying at points of maximum pessimism."
He was known to buy during massive downturns, during economic recessions, or simply during times when the headlines seem impossibly dark and market activity impossibly crazy… like the present.
Most famously, for example, Sir Templeton purchased $100 worth of every stock that was trading below $1 per share on the New York and American Stock Exchanges in 1938 on the eve of WWII.
In total, he purchased 104 stocks for $10,400. Even though 34 of the 104 companies were bankrupt at the time, he was able to sell those shares for nearly four times the money he had initially invested just four years later.
Sir Templeton would go on to found the Templeton Growth Fund (TEPLX), and over the next 25 years, Templeton had a hand in creating numerous highly successful international investment funds – nearly all of which relied on some form of buying during times of seemingly impossible market stress. In 1999, Money Magazine called him "arguably the greatest global stock picker of the century."
Must See: This Great Depression-Era "Secret" Helped Transform Two Teachers into Millionaires. Read More…
Today, many investors are faced with the same circumstances Templeton faced during his career, especially this past Monday living through the single largest point downdraft in market history… followed by a 1,167-point intraday swing during Tuesday's trading.
There's no doubt in my mind that there will be more volatility ahead, but history shows very clearly that the bull market can continue as long as the economy and corporate profits remain strong. It's just a matter of when… not if.
Which brings me back to our "Templeton" moment.
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.