I regret to inform you that market momentum went negative around 12:15 today. This was not an unexpected occurrence. You see, just 25% of American congressional representatives have any background in economics. You can look this up. They’re absurd. The Treasury Department needs to raise the debt ceiling. But we have various factions of politicians treating this situation like it isn’t a big deal.
I fully expect that Congress will eventually lift the debt cap. However, we’re going to have to endure a cycle of selloffs as pain and worries accelerate. My advice to you is simple: Buy the dip.
This madness occurred in 2011. We saw people panic sell in 2011 over concerns that the U.S. government would default on its debt. I made this mistake. I sold JPMorgan stock at roughly $34 per share at the onset of the debt ceiling crisis that year. Because of irrational fear, I never bought back in. Today, JPM stock trades north of $160 per share. This was my greatest investing mistake ever. I don’t want you to make the same mistake. So, use this period of weakness to buy great stocks that you want to own for the long haul.
Utilizing Negative Market Momentum
Take advantage of pullbacks in stocks like Amazon.com (NASDAQ:AMZN) or Microsoft Corporation (NASDAQ:MSFT). Buy into great banks like Bank of America (NYSE:BAC) or Citizens Financial Group (NYSE:CFG).
Use this period of insanity to your advantage. Remember, the market has a historical bias to the upside. These temporary moments of clinical market insanity are the best times to make money. Don’t worry about the ship of fools in charge… just focus on the future.
Moving forward, my expectation is that we can make a lot of money in the supply chain of capital. I’ve said that I’m very bullish on American Express (NYSE:AXP) and PayPal (NASDAQ:PYPL). But there are other organizations in the space of trade credit that might outperform the markets in 2022.
I will do a much deeper dive into this thesis on Thursday. Also, lookout for a video from me very soon that gives you a taste of what my Surge Point Trader subscribers receive each Friday.