Three Very Good Days for Our Buy List

The stock market has fallen over the last three days while our Buy List has beaten the market each of those days — and by a good amount. The S&P 500 is down 3.12% since last Thursday while our Buy List is down just 1.10%.

It always seems a little odd highlighting your outperformance during a difficult period. I call this the “we suck less” line, but frankly, this is a very important thing to do. What truly helps long-term success is holding up better during difficult times.

Part of our recent success lately has been due to the market’s shift towards defensiveness. I’ll give some examples. Amazon is now 20% below its high. Google is 18% below its high. Facebook is 35% below its high. Now let’s look at some stocks that made new highs today: Coke, McDonalds, Procter & Gamble, Clorox and Hormel Foods. All staples.

Meanwhile, commodities are suffering. The price of silver closed at $14.01 per ounce. That’s its lowest price since early 2016.

West Texas crude has now fallen for 11 sessions in a row. On October 26, oil closed at $67.59 per barrel. Today, it closed at $59.93.

Posted by on November 12th, 2018 at 5:21 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.