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Investors Are Terrified — So It’s Time to Be Greedy

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The March 2020 corona crash was financial Armageddon.

Stocks plunged 7% … 9% … and even 12% in a single day.

CNNMoney’s Fear & Greed Index, which tracks investors’ confidence, fell to nearly zero.

CNN called it “Extreme Fear.” And terrified investors couldn’t wait to dump all their stocks.

But by April 2020, the S&P 500 Index had rallied over 30%.

By August 2020, the index was already making new all-time highs.

And by July 2021, the markets had more than doubled since the crash.

Why am I bringing this up now?

Because we’re seeing “Extreme Fear” creep back into the stock market once again…

Every Market Panic Has Been a Buying Opportunity

Earlier this week, the Fear & Greed Index dropped below 15 for the first time since the March 2020 crash.

As you can see in the graphic below, this is extreme fear.

(Source: CNNMoney.)

We saw similar levels of fear back in 2018.

The index dipped below 15 in March 2018 and December 2018.

But like the corona crash, the markets quickly rebounded by double-digits both times.

In fact, looking at the past 10 years, every market panic has been an incredible buying opportunity.

The chart below shows the S&P 500’s three-, six- and 12-month returns whenever the Fear & Greed Index dropped below 15.

How the S&P 500 Fares After Times of “Extreme Fear”

That’s a lot of green!

In the past 10 years, the stock market has always performed well after investors rushed to sell their shares.

On average, the S&P 500:

Gained 11% after three months.
Gained 14.5% after six months.
Gained 22.6% after 12 months.

Those are phenomenal returns you can’t afford to miss out on.

Be Greedy When Others Are Fearful

Investors are fleeing tech stocks.

On Monday, the tech-heavy Nasdaq Composite Index officially entered a bear market.

But as legendary investor Warren Buffett said: “Be fearful when others are greedy, and be greedy when others are fearful.”

That means it’s time to be greedy.

Ian King recently highlighted a great tech stock to buy right now.

Its product is vital to the future of the electric vehicle industry.

Now’s your chance to grab shares before the stock market rebounds.

You can learn more about this opportunity by clicking here.

Regards,

Jay Goldberg

Assistant Managing Editor, Banyan Hill Publishing

Morning Movers

From open till noon Eastern time.

Ebix Inc. (Nasdaq: EBIX) is a supplier of on-demand software and e-commerce services to the insurance, financial services, travel, health care and e-learning industries. The stock is up 26% on the news that its Indian subsidiary EbixCash Limited filed a prospectus for an IPO.

Natera Inc. (Nasdaq: NTRA) develops and commercializes molecular testing services worldwide. It is up 22% on a rebound from a sharp drop after it responded to a short report by Hindenburg Research calling the company “pioneers in deceptive medical billing.”

Indonesia Energy Corp. Ltd. (NYSE: INDO) is an Indonesian oil and gas stock that is up 15%. The stock in up on the news that it has mobilized its drilling rig at its Sumatra Island property to drill two back-to-back oil-producing wells.

CrowdStrike Holdings Inc. (Nasdaq: CRWD) provides cloud workload and endpoint security, threat intelligence and cyberattack response services. It is up 13% after the company posted better-than-expected financial results for the fourth quarter and provided a strong outlook for the current fiscal year and quarter.

AgroFresh Solutions Inc. (Nasdaq: AGFS) provides solutions, data-driven technologies and services to enhance the quality and extend the shelf life of fresh produce. The stock is up 13% after it delivered strong results for the fourth quarter despite weather-related impacts delaying operations.

Clarivate Plc (NYSE: CLVT) provides structured information and analytics for discovery, protection and commercialization of scientific research and innovations. The stock is up 11% after its fourth-quarter report showed strong subscription and reoccurring revenue growth, which allowed it to beat expectations.

Vital Farms Inc. (Nasdaq: VITL) is an ethical food company that provides pasture-raised products such as eggs and butter. It is up 11% after reporting fourth-quarter earnings and issuing guidance that exceeded analyst expectations thanks to significant gains in retail distribution of its products.

Genesco Inc. (NYSE: GCO) is a retailer and wholesaler of footwear, apparel and accessories. The stock is up 9% this morning after the company managed to deliver great results for the fourth quarter due to a strong holiday sales season and continued recovery from pandemic conditions.

FuelCell Energy Inc. (Nasdaq: FCEL) designs, manufactures, operates and services stationary fuel cell power plants for distributed baseload power generation. The stock is up 9% after the company reported revenues that more than doubled in the fourth quarter thanks to its expansion and presence in the Asian market.

Alpha Metallurgical Resources Inc. (NYSE: AMR) is a mining company that produces, processes and sells coking coal. It is up 8% after analysts at B. Riley Securities upgraded the stock from a neutral to a buy and raised the price target.

Goldman says buy these stocks with high and stable margins to combat stagflation environment

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