Stock Finder Genie:  5 Tips to Make Money in a Bear Market 

5 Tips to Make Money in a Bear Market 

1. Invest Slowly

When your in a market correction or a bear market no one knows when you’ll hit the bottom. This isn’t the time to go all in and Ape into stocks. Instead when you find a company you want to buy stock close in invest slowly. Let’s say you want to invest $1,000, try investing $100 a month. 

2. Invest in high quality companies.

High quality companies won’t suffer as big of a loss in share value and will rise the quickest. Stay away from unprofitable companies with no foreseeable profitability in the next few years.

3. Don’t panic sale

Most companies are significantly lower than their 52 week lows. This isn’t the time to panic sale. 

4. Keep Cash on the Sidelines 

How often has this happened to you. A stock is trading at crazy valuations but you don’t have any money to invest. While there are a lot of good deals out their there could be even better deals in the next few months. As you slowly invest into stocks make sure your not depleting your cash reserves. Have firepower waiting to deploy when the insane valuations come.

5. Stay away from Margin

Using some margin might sound like a great idea now their are countless companies down over 50% from their all time highs, however, using margin is a recipe for disaster for most retail traders. It’s not worth the risk or margin interest cost. 

 

Stock Finder Genie:  Pick 3: Dividend Stocks

Don't Forget About Dividend Stocks

What is a dividend Stock: A Dividend stock pays a set amount of money to its shareholders. Usually dividend stocks pay 4 times a year, however, certain stocks will pay every month. So, if a stock pays $1.00 per share and you own 1,000 share you will be paid $1,000. You can use the dividend money to purchase additional shares of the company, you can purchase shares in another company or you can send the money from your brokerage account to your bank account. 

Let's Be Honest: Dividend stocks are boring.

This is true, dividend stocks tend to be more stable and boring companies. High Growth companies or new and exciting companies tend not to offer a dividend. Dividend stock share price tends to be more stable. You won't typically send huge downward or upwards swings in the price of a dividend company, however, this can occur. 

Buy Dividend Aristocrat: Dividend aristocrat companies are usually referred to a company that consistently pays a dividend and they consistently raise their dividend each year.  

Its important to understand that the dividend you will receive will most likely be less than the currently 8% + inflation, however, as long as inflation is high, the Fed is increasing interest rates and there is fear of a recession high growth companies with little to no profits will continue to get hammered in the stock market. You may see huge upward swings during this time with growth companies but the overall trend will be down. So, unless you have a crystal ball and you know the exact dates of these upward movements in the end you will get rekted. 

When you invest in high quality dividend companies you protect yourself from massive movements down. Consider companies, such as, Paypal, FaceBook, Upstart, Coinbase to mentioned only a few that have fallen 25% up to 50% in a single day. Just image going from $10,000 to $5,000 in a single day. These kinds of moves will destroy your portfolio.  

Until the mass fear has calmed and there is more clarity around if there will be a recession, when inflation will start go down and how much the Fed will increase the interest rate stay away from companies with no profits and stay away from speculative growth companies. Instead invest in quality dividend companies that will pay you just for holding your shares and protect your wealth until the madness ends. 

Interested in high growth companies to invest in to 1 - 10 X your month? Look out for the next article discussing the 10 best companies to invest in for massive profits after we hit the stock market bottom. Until then be safe and protect your money by investing in dividend companies. 

Stock Finder Genie: Pick 2 - Bitcoin (Wait for the Real Dip 20K and Lower)

 Stock Finder Genie: Pick 2 -  Bitcoin (Wait for the Real Dip)

Buy the Dip in Bitcoin

Cryptocurrency: Bitcoin

Disclaimer: I am not a financial adviser and this should not be taken as financial advice. Consult with a certified financial adviser before making any investment. 

Disclaimer: Stock Finder Genie does hold a small amount of Bitcoin. 

Remember Cryptocurrency can have huge swings to the upside and downside if your not ready to potentially lose your entire investment do not invest in any cryptocurrency.

Bitcoin is down over 50% from it's all-time high. If you have every been interested in getting into Bitcoin now is the time to start buying. More companies, countries and individuals are starting to adopt and use Bitcoin. Bitcoin is no longer a fringe investment that will end up going to zero. You can no longer ignore bitcoin and even top investment advisors are now recommending to have at least a small portion of your portfolio in Cryptocurrency.

Stock Finder Genie does not recommend aping into Bitcoin at this time. Rather its recommended you take a small amount $200 - $300 a month and invest in Bitcoin. Some people think the bottom is in for Bitcoin and others are saying Bitcoin will go to $20,000 or sub 20K. The truth is no one has a crystal ball. Your best bet is to take a small amount and invest in Bitcoin every Month, or every week or every other week. If Bitcoin goes under 20K Stock Genie will start investing a little heavier, however, we will continue buying bitcoin every month like clockwork. 

Will Bitcoin go to 10K or 500K no one can know 100%, however, Stock Finder Genie is a long term bull and we believe Bitcoin will be much highier than its current price 3 - 5 years from now. 

 

Stock Finder Genie: Pick 1 JPMorgan Chase (JPM)

 Stock Finder Genie: Pick 1 JPMorgan Chase

Stock to own in a Market Correction

Company: JPMorgan Chase

Ticker Symbol: JPM

CEO: James Dimon

Founded: 1968

Headquarters: New York, New York 

52 Week High: $172.96 (As of 5/13/2022)

Dividend Yield: Over 3% (As of 5/13/2022)

Disclaimer: I am a shareholder of JPMorgan Chase. I am not a financial adviser and this should not be taken as financial advice. Consult with a certified financial adviser before making any investment. 

Let's be honest 2022 has be a challenging year in the stock market. There are numerous stocks down 50, 75, 90% from their 52 week high. There's be a perception shift in the stock market from stocks only go up to stock only go down. There is mass fear in the stock market right now and for good reason. I believe stocks still have a ways to go down, however, that does not mean you can't find winners out there that you can start buying. 

One stock that is a winner I recommend you start looking at investing is JP Morgan Chase (JPM). JP Morgan Chase hasn't escaped the mass market sell off and is down over 30% from its 52 week high. There still might be some additional downside for this stock, however, the stock has reached a very attractive price point. At writing of this article JPM has a P/E of 8.76 and offered an attractive divided over 3%. This stock is a no brainer. While the market continues to have a sell-off you can collect a 3% divided just for holding onto this stock and with interest rates destined to continue to rise and stay elevated for a long time JP Morgan Chase is in an excellent position for continued profit growth. For this reason Stock Finder Genie took a position in JP Morgan Chase today and we will continue to dollar cost average if the share price continues to fall.