It was before my time, but investors kept a close eye on the “Misery Index” amidst the economic malaise of the 1970s.
The idea was simple: The indicator was the sum of the inflation rate and the unemployment rate.
But the idea was powerful.
The higher the index went, the more miserable ordinary people felt.
I see echoes of this today.
Inflation is hovering near 40-year highs, and by some measures we’re already in a recession. Earlier this summer, a CNN poll found that 85% of Americans felt the country was heading in the wrong direction. A similar poll from Forbes reported 88% of Americans felt similarly in July.
I get it! It’s been a rough few years. A brutal pandemic, a market crash and soaring prices on basic necessities would sour anyone’s mood.
But here’s the thing: Market pessimism has become a “crowded trade.”
Don’t Run When Market Pessimism Ramps Up
When I see investors all taking the same side of a trade, it’s my instinct to pause. Far greater profits — and less risk — often come from taking the other side of a trade.
That’s where we are today.
The market has reached a point of maximum pessimism. It’s time for us to take the other side of that trade and turn that pessimism into maximum profits.
I don’t trade based on hunches or what my gut tells me because I’m the same as everyone else. When I see the market imploding, I get that same sick feeling in my stomach that you do!
I’m able to stay calm and trade my way through a crisis precisely because I don’t depend on my gut. I follow my system.
Let me give you an example.
How We Turned Pessimism Into Profit Over 6 Brutal Months
This year, the market had its worst first six months in 50 years. It’s tough to forget.
We finished 2021 on a high note.
But inflation, fear of the Federal Reserve tightening its monetary policy and the Russian invasion of Ukraine all conspired to punish the S&P 500 and Nasdaq, pushing both into bear market territory.
It was a nasty reminder to investors (both new and old!) that the stock market can be risky!
Yet in the midst of the turmoil, my Max Profit Alert system drove me to a monster opportunity forming in traditional oil and gas … a sector that had been all but left for dead over the past decade.
My investors made an incredible 221% in just 87 days on Chevron Corp. (NYSE: CVX) at a time when most investors were losing their shirts.
Max Profit Alert identified a fantastic opportunity to take the other side of a crowded trade. And this wasn’t an isolated incident.
In the first half of this year alone — while the broader market was selling off at a nasty clip — my readers enjoyed…
- A 23% gain on one third of our position in only 12 days on the iShares MSCI Spain ETF.
- A 36% gain in 14 days on the Russell 2000, a collection of small-cap stocks.
- A 140% gain in 51 days, also on the Russell 2000.
And I’m seeing plenty more where these came from.
Sentiment is even more extreme today than when these trades were placed, and I’m betting the returns will be proportionate.
I know many of you are looking for direction, answers and a proven strategy to grow and protect your hard-earned money for both yourself and future generations to enjoy.
Later this month (on August 30 to be exact), I will share more about how my Max Profit Alert system finds multiple double- and triple-digit winners in 90 days on average.
It doesn’t matter what’s going on around the world … or on Wall Street…
It could be a bull market … bear market … short-term rally … or brutal market crash…
I’ll show you how I turn crises into opportunity and how you can learn to not let inflation or recession fears drive you to make the irrational, fear-based investing decisions that many others fall prey to.
Click here to put your name on the list and get ready to turn the market’s maximum pessimism into maximum profits when I share everything on Tuesday, August 30.
To good profits,
Adam O’Dell
Chief Investment Strategist