Ryan Stancil,
Editor
Dec. 3, 2021
The market has not been having a good time.
Just when it seemed like things were inching back toward being normal, a new COVID variant began sparking fears.
While scientists work to understand Omicron, investors wait and see what effect this will all have. Still, when news broke that there was a new variant to worry about, the market reacted as markets do and stocks and commodities slid on the uncertainty.
No sector was safe. Even oil saw its price drop as there was worry that this new variant would lower demand.
Talk of new lockdowns, fear of vaccines not working against the new strain, and a feeling of halted progress has led to volatility. While much of the worry is legitimate, there is a case to be made that this week’s events present a strong opportunity.
The recent downturn in stock prices was reactionary, and things are already beginning to recover. Savvy investors have seen this and are beginning to pick up new shares at discounts.
The term ‘uncertainty’ is often viewed in a negative light, but that doesn’t have to be the case in this context.
While the scientific community doesn’t know much about this variant, there is some early indication that the illness it causes may not be as severe as past variants. That, paired with the fact that it spreads faster, means that it could outcompete other variants. This would bring the world closer to the end of the pandemic as we know it.
The research is ongoing, of course, and this is still early days, so that could change. Still, it shows that the default reaction shouldn’t be to panic.
What we’ve seen this week is a cycle that has repeated throughout history.
Something happens that makes investors nervous, leading to a massive selloff in the market. Before long, things level out, it becomes apparent that the panic was an overreaction, and things start to recover.
Rinse and repeat until the next big event leading to a selloff.
While all of this happens, those who have seen this play out before know what needs to be done. Those shares and commodities that people are rushing to get rid of can be scooped up at a discount. Things will eventually turn around, as they always do, and prices will go back up, as they always do.
When that happens, the investors who acted instead of panicking will be ahead of the herd, reaping the benefits. Whether they started new positions, added to existing ones, or finally moved on the stock they had been eyeing for months, jumping on an opportunity where others see a crisis is a proven way to profit.
No matter what the specific play is, the framework is always the same. We’re seeing that right now.
And because this recent downturn affected most areas of the market, you have your pick of what to grab at a discount.
Gold, for example, seems to have taken more of a beating than other sectors. That just means the opportunity is better. While gold’s price has pulled back for much of the year, there are factors in place that are setting the yellow metal up for a comeback.
When that happens, there is one gold play that will do better than many others.
The coming gold resurgence is a story that doesn’t get talked about much, but it will be one of the big investment stories of the next few years.
Learn all of the details in this new report and you’ll see why.
Ryan Stancil
Editor, Daily Profit Cycle