Stock Alert: New Strategies For Our Special Time
We are living in unique times!
I’ve never been in a global lockdown before. I’m sure you haven’t either. And the global economy has been hit so hard, the IMF Director warns that this crisis may cause the “worst economic fallout since the Great Depression”.
Closer to home, Luzon contributes 70% of our country’s GDP—so imagine how Luzon’s quarantine will impact our economy. And yes, analysts have also lowered the projected earnings of our recommended companies, and with that, the target prices of our stocks.
This is where the Good News come in: Special Times call for Special Strategies. While we’re in this crisis, the TrulyRichClub will be recommending two unique strategies…
First Strategy:
Invest In Our Foundational Stocks Without BBP (For Now)
Until we tell you to stop, we’re naming seven Foundational stocks that you should be buying, without looking at its BBP or Buy-Below-Price. These Favorite Stocks are: AC, ALI, SM, SMPH, BDO, URC, and GLO.
Here’s the idea behind this simple strategy: These giants are usually very expensive; Their stock prices usually loiter around the “stop buying” are. Except now. This crisis is giving us an unprecedented opportunity to accumulate them at cheaper prices. Whooohooo!
When we see that the prices are already too expensive, we’ll send you another STOCK ALERT email, and we’ll bring them back to our regular SAM Table.
ATTENTION: New in the stock market? These Foundational Stocks are also are our recommended Starter Stocks. You can buy any of these stocks as your first stocks.
Second Strategy: Make Some Switches
What is switch? Switch is a strategy that can only be employed during a crisis where the entire market is down. Switch is selling a stock at a loss and buying a “better” stock that’s also very cheap. When it bounces, you gain back your loss—and some profit.
Yes, you read it right: You sell your stock at a loss. It’s unnerving and sounds insane, but long-term investors do this occasionally, as long as they can buy a “better” stock. Why is it better? We believe that when the big bounce comes, there are certain companies that will bounce quicker. And these are what we’re recommending to you.
IMPORTANT NOTE #1: If you’re going to make the Switch, and you have a lot of money riding in these stocks (P100,000+), please switch slowly. Sell little by little, taking a few days or weeks. Reason? Some of these stocks are illiquid. That means if you sell a huge amount of stocks, you cause the stock price to go down too much.
Here they are: Switch MEG, FLI, RLC to ALI and/or SMPH; Switch CHIP to MBT and/or BDO; Switch MPI to AC and/or GTCAP; Switch SHLPH to DNL.
IMPORTANT NOTE #2: If you’re not comfortable doing a switch, that’s fine. Your current stocks, in due time, will bounce back too. But chances are high that they will take longer than our favored Stocks to bounce. That’s why we encourage you to switch. But if you choose not to switch but stick with them, we’ll still list these 6 stocks at the SAM TABLE below, but we’ll put them on HOLD (for now), so you buy our other recommended stocks.
For these SAM stocks, please buy only when it’s below our Buy Below Prices, and stop buying when their prices go beyond their Buy Below Price.
Mike Vinas (in our next Stocks Update) will talk more about the impact of COVID-19 to the economy and corporate earnings in our next Stocks Update.
Friends, we’re living in difficult days, but with crisis comes the greatest opportunity. A crisis like this happens rarely—and we’re in it.
Don’t waste it!
We don’t know how long this crisis will last, so keep buying slowly, buying every month.
Happy investing!
waiting ako sa mga stocks updates
