These Stocks Are the Most Likely to Rebound
Dear Wealth Watch Reader,
It has been a tumultuous past two weeks for the stock market, with big swings both up and down.
But before we plow ahead into 2019, let’s recap:
First, it’s no surprise to me that after a dismal fourth quarter for stocks featuring the worst December sell-off since 1931, stocks continued their wild ride during the pre- and post-holiday weeks.
The Dow opened lower on the half-day session last Monday, and after a brief rally attempt rolled over for a 653-point Dow drop by the close.
It was the worst Christmas Eve trading day ever.
But lo and behold, stocks reversed to the upside last Wednesday. A spirited post-Christmas rally, saw the Dow climb 1,086 points. It was the Dow’s biggest point gain in history!
What Does It All Mean?
Expect sharp up and down swings to continue a while longer as financial markets search for stability.
It also means many of the strong-performing stocks we’ve suggested over the year in Wealth Watch finally broke down and fell victim to the winter sell-off.
That’s unfortunate, because many of those ideas were high-quality blue chip stocks, which pay fat dividends: the cornerstone of any successful portfolio.
Still, the Dow’s thousand-point-plus gain last Wednesday, along with more follow-through upside this week after the New Year’s holiday is a bullish sign.
Stocks are extremely oversold right now, meaning a lot more gains are likely coming, and soon.
That said, with trading this volatile, it’s best to wait patiently for confirmation of a fresh uptrend before acting.
The key now is to watch closely for decisive upside moves in select, high-quality stocks that are outperforming the overall market.
The stocks that held up the best during the fourth-quarter market sell-off are likely to enjoy the strongest rebounds ahead, and I have a dozen or so on my watch list right now.
I’ll be sharing these in upcoming Wealth Watch issues.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch
Editor’s note: Hardworking Americans are screaming, “Thank you!” to President Trump as they collect checks for $4,280… $6,344… and even an exceptional $8,181 per month.