Mr. Travis I was wondering what this stock pick is that the Motley Fool Brothers are touting in this article. Of course you have to pay for subscription in order to find out. Not to sure about the author that wrote this article Sean Williams
Sean Williams (TMFUltraLong) A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and investment planning. You’ll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest.
Near the end of his article is where he points you to the Motley Brothers
Thanks Sharon
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
Here is the article Mr Travis
50 Years of Stock Market Corrections, and the 1 Figure That Stands Out
Corrections are usually over very quickly, and they’re traditionally painless to long-term investors.
Sean Williams (TMFUltraLong) Mar 27, 2018 at 6:36AM
For the first time in two years, worry has returned to the stock market — at least for some investors. After a relatively straightforward climb without so much as a bump in the road in 2017, both the Dow Jones Industrial Average (DJINDICES:^DJI) and S&P 500 (SNPINDEX:^GSPC) have hit a rough patch in 2018. In fact, the nearly 122-year-old Dow Jones Industrial Average has logged four of its nine largest single-day point declines since Feb. 2.
On Friday, the Dow broke through its February low, closing at 23,533 — more than 3,000 points below its all-time high — while the S&P 500 tumbled to within a few points of its February closing low. Both indexes are down by more than 10%, pushing them officially into correction territory.
A frustrated investor with his head in his left hand holding up a tablet with an image of a declining stock chart in his right hand.
IMAGE SOURCE: GETTY IMAGES.
Why is the stock market falling?
With the unemployment rate at its lowest level since December 2000, and the U.S. economy on track to deliver solid year-on-year GDP growth, you’re probably scratching your head and wondering why the stock market is heading lower. Though there is no single answer, it appears to be a confluence of factors.
For example, President Trump recently enacted tariffs on steel and aluminum that are designed to bolster domestic industries while lowering our trade deficit with China. Unfortunately, China may retaliate with tariffs of its own, escalating into an all-out trade war. Fears over slowing growth as a result of this trade war are spooking the market.
There have also been concerns that the U.S. economy could overheat. As of Feb. 1, following the release of ISM Manufacturing and construction spending data, the Atlanta Fed had forecast Q1 2018 GDP growth of 5.4%. If such an estimate rang true, it could entice the Federal Reserve to get more aggressive with its monetary tightening. And as we know, higher interest rates mean less lending and usually slower economic growth to follow. The Atlanta Fed’s latest GDP estimate as of March 23 for Q1 2018 was down to 1.8%.
Even Facebook can be blamed. The social media giant’s data scandal with Cambridge Analytica wiped off more than $60 billion in value last week. Since the S&P 500 is market cap-weighted, it was a prime factor in pushing the market lower.
50 years of corrections, and the one number that stands out
Despite these concerns, taking a step back and examining how the stock market has responded to corrections over the past five decades should help worried investors calm their nerves.
A table showing that more than 70% of corrections since 1968 last 104 or fewer days.
DATA SOURCE: YARDENI RESEARCH. TABLE BY AUTHOR. RED HIGHLIGHTS SIGNIFY CORRECTIONS LASTING IN EXCESS OF 500 DAYS. YELLOW HIGHLIGHTS REPRESENT MEDIUM-LENGTH CORRECTIONS. GREEN HIGHLIGHTS SYMBOLIZE SHORT CORRECTIONS.
That table includes a rundown of every correction, rounded to the nearest whole number, since 1968 in the S&P 500, along with how long it took for that correction to find a bottom.
As you can see from the data, which comes from Yardeni Research, there have been 29 corrections over the past 50 years, working out to one around every two years, on average. But what stands out the most about this data is the duration of these corrections. There are six instances where a correction lasted longer than 500 days, as highlighted in red; two instances where they lasted between 157 and 288 days, as noted in yellow; and 21 instances where they’ve been 104 days or shorter, as shown in green.
While it’s true that we can’t predict with any long-term accuracy whether a correction will manifest into a full-fledged bear market that takes 500 or more days to find a bottom, the data pretty clearly shows that most corrections, over 70%, turn out to be nothing more than quick hiccups that last a few weeks or perhaps a little longer than three months.
A stopwatch being held behind an ascending stack of gold coins.
IMAGE SOURCE: GETTY IMAGES.
Stock market corrections are a great time to buy
On the other hand, these hiccups usually turn into outstanding buying opportunities. With the exception of our current correction, all 28 previous corrections of at least 10% over the past 50 years have been completely erased by a bull market rally.
What’s more, the S&P 500 has spent almost three times as many days over the past 50 years rallying compared to the days it’s spent in correction. Though there are no guarantees in the stock market, buying an index fund, or a basket of high-quality stocks within a major index like the Dow or S&P 500, during a correction is about as close to a surefire long-term return as you’re going to get.
Something big just happened
I don’t know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations. Together, they’ve tripled the stock market’s return over the last 13 years.* And while timing isn’t everything, the history of Tom and David’s stock picks shows that it pays to get in early on their ideas.
Click here to be among the first people to hear about David and Tom’s newest stock recommendations.
*Stock Advisor returns as of April 2, 2018
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Facebook. The Motley Fool has a disclosure policy.
This Stock Could Be Like Buying Amazon in 1997
Imagine if you had bought Amazon in 1997… a $5,000 investment then would be worth almost $1 million today.
You can’t go back and buy Amazon 20 years ago… but we’ve uncovered what our analysts think is the next-best thing: A special stock with mind-boggling growth potential.
With hundreds of thousands of business customers already signed up, this stock has been described as “strikingly similar to an early Amazon.com.
They’ve teased several stocks in that way over the past few years — most often Shopify (SHOP), but also Match.com (MTCH) and, somewhat similarly, The Trade Desk (TTD). I own SHOP and TTD shares, personally.
MTCH: https://www.stockgumshoe.com/reviews/motley-fool-stock-advisor/motley-fools-double-play-buy-alert-on-recent-ipo/
TTD: https://www.stockgumshoe.com/reviews/motley-fool-stock-advisor/fools-ticking-time-bomb-for-cable-tv-pitch/
SHOP: https://www.stockgumshoe.com/reviews/motley-fool-rule-breakers/david-gardners-the-next-amazon-com-stock/
Does anybody know about the Wyoming Stock Exchange that has members that are tied to blockchain the end of wall street
“Wyoming Stock Exchange?” That’s a new one on me. If you see it promoted, please send the ad along to ILoveStockSpam@gmail.com
Travis it is from Agora and Ray Blanco; Breakthrough Technology Alert I believe. The link: https://pro.agorafinancial.com/p/VPI_stockchain_0318/EVPIU412/?a=13&o=65236&s=77405&u=4914249&l=1121084&r=MC2&vid=kvnjNh&g=0&h=true