“MARKETS IN TURMOIL”
That’s the name of the CNBC special report show that plays whenever we see a sudden drop in the market.
It’s also a headline scary enough to keep most people from investing.
Since 2010, the ‘Markets in Turmoil’ special has aired around 106 times.
But here’s what’s so funny.
What if you invested in the S&P 500 every time CNBC had a "Markets in Turmoil" special?
Well... your average return after one year would be 40%.
And you would have had a positive return after 1 year 100% of the time.
Yes, you read that correctly.
100% of the time, the S&P 500 has delivered positive returns within one year following these broadcasts.
But why is this the case?
In the short run, markets are driven by human psychology.
In the long run, they are driven by intrinsic value.
During times of turmoil, fear and uncertainty often cause investors to sell, leading to sharp declines.
But as we've seen time and again, these sell-offs are typically short-lived, and patient investors who buy during these periods often reap significant rewards.
This reminds me of one of my favorite quotes:
So next time you hear that “Markets are in turmoil…”
Interpret it like this-
“Discounts are on the way.”
Check out these resources:
Tickerdata 🚀 (My automated spreadsheets and instant stock data for Google Sheets!)
Interactive Brokers 💰 (My favorite place to buy and sell stocks all around the world!)
Seeking Alpha 🔥 (My favorite investment research platform!)
The Dividend Report 📊 (Free Newsletter for Straightforward Dividend Stock News)
In Other News…
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That’s all for now!
See you next week!
Dividendology 🚀
Any chance you could do a video on Estee Lauder? Much appreciated, thanks!