Hello investors!
Unless you live under a rock, you've probably seen the news around Donald Trump's global tariff announcement, leading to a ~10% drop in the S&P 500.
In today's newsletter, I won't bother rehashing what you're likely already seeing across news and social media.
Instead, I want to provide you with my perspective on where I see buying opportunities in this market.
And if you want to see a live walkthrough of these concepts in more detail, check it out here:
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1. My Buy the Dip Indicator
Everyone knows you can't time the market.
But nine times out of ten, the real takeaway is that you shouldn't hold cash on the sidelines waiting for a market crash.
So what if you're already invested, and you still want to capitalize on lower prices?
My answer is two fold:
- I use an indicator called Bollinger Bands to execute a "mean reversion" strategy
- I reallocate away from other assets like Gold and Bonds and into Stocks...sometimes I even dabble in leveraged products like leveraged ETFs or options.
According to this indicator, we are still 8%-10% away from a true buying opportunity.
And the reality is that even if we did hit that indicator next week, there is no guarantee prices will rebound in the near term.
But here's what I'm doing:
Every Friday at 12:30pm PT, I will send out an email and go live on YouTube updating subscribers on where the market is at in relation to this indicator.
I explain further in the video, but when this indicator flashes green, there's about a 30 minute window at the end of the week to decide if you want to follow this strategy or not.
So if you feel that this mean reversion strategy is right for you, make sure to stay subscribed to both this newsletter and the YouTube channel wtih notifications turned on so you don't miss out.
2. Best Assets to Invest in 2025
In case you missed it, there are four assets I have been talking up through Q1 2025. Those are:
- International Stocks ex-US: $ACWX
- Gold: $GLD
- Utilities: $XLU
- Real Estate: $VNQ or $GOOD
So far, these have performed quite well compared to the broader market (see screenshot), and I expect them to continue performing well given all the information I have available to me today.
Of course, I may update these depending on any changes to our economic outlook as the year goes on, so make sure to stay up to date with my content to get my real-time views.
3. The Warren Buffett Approach
As I mentioned in my video about Building a Successful Investment Strategy for 2025, I continue to believe this year will be a huge opportunity for individual stock picking.
But astute subscribers will point out that I've never shared an individual stock picking strategy.
Which is absolutely correct, because since I've been writing this newsletter, it has generally been better to invest in ETFs than individual stocks.
The market was just too overvalued and too saturated with easy money.
So now is the time to share what approach I will be using in 2025, and that's to put on my Warren Buffett thinking cap.
I go into much more detail on this in the third chapter of this week's YouTube video, but here's the spark notes:
I'm looking for stocks with low P/E ratio (below 10) and strong dividend yields (above 5%).
As of today, there are 8 stocks from the S&P 500 that meet this criteria:
And just like any other style of investing, this is just one approach.
As prices continue to fall, I will be looking into high growth tech stocks, international markets, and even opportunities in currencies and commodities.
Each of those assets require their own strategy and set of criteria.
Regardless, I will keep my eyes out for the best wealth building opportunities and keep you updated here and on my channel.
Conclusion
That's all I've got for today, I would love to hear from you: Anything you have questions on? Any investments you're looking into? Have you already bought into this crash or are you still waiting for the perfect opportunity?
See you in the next one.
-Brian
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