3 Tips to Weather this Stock Market Storm

You know the stock market has been rough of late (understatement of the year!).

Probably you have read many articles telling you that market timing is nearly impossible and that history shows its best to stay in stocks as you likely will be ahead 6-12 months from now. 

On the other hand some market prognosticators are pounding the table to sell everything now as things will only get worse. 

This makes it very tricky to know what to do next. That is why I am writing this article with 3 tips I think you will find quite helpful at this time. 

1) It's Not An All or Nothing Decision

Too often we think we have to be all in the market or all out. Yet “Mr. Market” loves to make a fool out of those who try their hand at market timing. 

Interestingly, when investor sentiment is lowest (as it is now) is often when some of the biggest rallies take place. This means that selling in a panic is often the worst possible move.  

The point is that if you sell everything and the market bounces you will be dead wrong and it will take you a long time to make up that lost ground. 

Conversely if you stay 100% invested and the market continues to tank, then you will also be dead wrong with painful losses on your hands. 

The solution is as simple as finding a compromise. As in a middle ground. 

Perhaps if you are fearful of what comes next, then instead of selling everything, maybe just take 25 to 50% of your money out of the market and move into cash. 

This ensures that you will not be 100% wrong with this vital decision.

2) Sell D & F Rated Stocks

Most of our education on the Zen Ratings stock selection model focuses on buying A rated stocks to enjoy the most outperformance. 

Yet just as important is to make sure you do not have any sell rated D or F stocks lurking in your portfolio. Truly these are landmines that too often blow up unwitting investors. 

As of Thursdays close these D & F rated stocks were down on average -26.8% on the year. Likely that pain swelled to over -33% after Friday’s sell off. This is 2.5X worse than the average stock which begs you to weed them out of your portfolio ASAP. 

You have 2 good ways to check these things on WallStreetZen. 

• Set up a Watchlist to monitor daily changes in Zen Ratings for your stocks. Get details here >
• Use our Stock Screener and filter for only Zen Rating D & F to make sure your stocks are not on there. Plus if you are an aggressive trader…then this is a great group of stocks to consider shorting given their serious downside potential. Go to Stock Screener >  

This last part to screen for the Zen Ratings is a Premium feature…but gladly you can start a 14 day trial to appreciate this feature and many more. Start your trial now >

3) Buy More A Rated Stocks

I am not going to pretend that all of our A rated stocks miraculously rally when the over market is cratering as it is now. However, history shows that they absolutely hold up better than most stocks.

The 2022 bear market was a prime example when the S&P 500 ended the year down -18.18%. 

Amazingly our A rated stocks gutted out a +3.27% gain. Just as vital to note is that the F rated stocks fell -58.05% that year. 

When you combine tips #2 and #3 you realize that investing can be as simple as “out with the bad…in with the good”. 

That is sound wisdom in life. And sound wisdom when it comes to investing. 

I hope you will take it to heart and start using these resources now to enjoy better outcomes in the weeks, months and years to come.  

What to Do Next?  

On Wednesday April 9th, I am going to release my next 2 stock buy recommendations for the Zen Investor portfolio. 

The Zen Investor portfolio is where I hand pick the best stocks based on their Zen Ratings and my 44 years of investing experience. 

And over those years I have seen 7 bear markets…8 bulls…and just about everything else between. 

Meaning the 2 new stocks I am adding on April 9th most certainly are taking the current market environment into consideration. 

Now is also one of the best times to become a new Zen Investor member to enjoy savings up 50%. Learn more by clicking below…

Discover the Zen Investor & My Top Stock Recommendations > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor-in-Chief of WallStreetZen

What to Do Next?

• 8 Stock Lists You Need Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return > 
• 4 Step Process to Find More 100%+ Stock Winners >

Want to get in touch? Email us at news@wallstreetzen.com.