Investment U View in browser IU Plus | Courses | Conference | IU Bookstore Monday, May 18, 2015 | Issue #2543 A WWII Story That Could Make Investors Very Rich... Take a look at these three groups of stocks. During WWII, Germany hid a "miracle of chemistry" that fueled 60% of its wartime economy. Those secrets have finally been harnessed by a little-known company, giving it the ability to produce gasoline for $0.58 a gallon... Why You Should Pray the Market Tanks Alexander Green, Chief Investment Strategist, The Oxford Club Everywhere I go these days, the same question seems to weigh on investors' minds. "Don't you think this market is overdue for a correction?" I always answer the same way: I sure hope so. "But don't you own stocks?" they typically reply, with a look of puzzlement. Of course. "So why would you root for a correction?" Let me count the ways. According to InvesTech Research, since 1932 there have been market declines of 10% to 20% - the traditional definition of a correction - approximately every two years. We haven't had one since October 2011. (Although we came close in 2012.) In that sense, yes, we are overdue. But should a market correction scare you? Stocks go up and stocks go down. Then they go back up again. I hate to be the skunk at the garden party, but anyone who sees falling stock prices as an opportunity to sell rather than buy has a tough road ahead of them. The problem, of course, is that while investors can imagine a sell-off, they can never imagine the actual news backdrop that accompanies it. Investing in Gold Just Got Easier Why spend hours searching for the best price when you can always get the best price in one place? With over 12 dealers and wholesalers bidding for your business, you can buy, sell and store gold, silver, platinum and palladium with a safe, reliable online platform. SPONSORED "I never imagined that this would happen," they say. This, of course, is something different each time. Nor are they prepared for the merchants of doom who come out of the woodwork to exclaim that each bump in the road is the beginning of the end. I work in an industry that knows there is good money in scaring the pants off people. (Unfortunately, it isn't terribly helpful to the pantless... who fear losing their shirts.) Corrections and full-blown bear markets - declines of 20% or more - are what equity investing is all about. They are your ideal buying opportunities. If you could earn equity-like returns with an account balance that rises as smoothly as a passbook savings account - which hardly rises at all at current rates - everyone would be fully invested in stocks. In other words, you're well compensated for the occasional sleepless night. Personally, market sell-offs have never bothered me. Every time great "Corrections and full-blown bear markets - declines of 20% or more - are what equity investing is all about." companies fall into the bargain-basement bin, I get an adrenalin surge, rub my hands together and start buying. Apparently, this is a contradiction of human nature, but I seem to come by it naturally. I just can't pass up a great deal. (Credit my Scottish blood.) Witness this recent conversation between my wife and me: Me: Honey, I was able to buy these two 50-lb bags of cat food today for 75% off! Wife: But we don't own any cats. Me: You're not hearing me. They were 75% off! Just kidding. We actually do have two cats. Would you like two cats? (Not kidding. I'm a dog person with cats. Blame it on the kids, who favor small, fluffy creatures that ignore them.) But back to my point. You should welcome a correction, not fear one. (Even if you're using a 25% trailing stop on your individual stocks, a correction generally results in no harm, no foul.) Every great investor recognizes this. Benjamin Graham, Warren Buffett, John Templeton and Peter Lynch all made a habit of buying the dips. Graham said, "Buy when most people... including experts... are pessimistic." Templeton said, "When people are eager to sell, I accommodate them by buying." Buffett said, "You want to be very fearful when people are greedy and very greedy when people are fearful." Lynch said, "I've found that when the market is going down and you buy, at some point in the future you will be happy. You won't get there by reading 'Now is the time to buy.'" Yet the average investor - who acts emotionally rather than rationally - does just the opposite. It's a shame really - because there is one prerequisite for selling high. It's called buying low. Good investing, Alex The Next "Smartphone"? In 2007, cellphones were everywhere. In fact, more than 1 billion were sold that year alone. But then, on June 29, 2007, one company said, "We're going to make your phone smarter." And it released its first smartphone. The company's stock is up more than 542% as a result. Well, there's a similar game changer happening right now. It involves the impending Wi-Fi shortage facing cities worldwide. And one company has the solution. Here's how tis company's breakthrough could make you very rich. Click here to post a comment on InvestmentU.com We Also Recommend... The No. 1 Reason Stocks Will Climb Higher by Andrew Snyder Sunday, May 17, 2015 There's no end in sight for this bull market, and with good reason. Right now, one popular corporate practice is all but ensuring shares will continue to rise for the foreseeable future. Read On... The Worst Kind of News for Stock Market Bears by Alexander Green Tuesday, May 12, 2015 For stock market bears - those betting against stocks - bad news is good news. Of course, the opposite is also the case. Read On... Investment U Plus by Andrew Snyder Monday, May 18, 2015 Timing the market is a fool's game, even if we're overdue for a correction. The best thing to do is to invest in time-tested stocks like the one Investment U Plus readers are discovering today. It's one of the few banks that sidestepped the financial crisis. To find out how you can get all the details, click here. You are receiving this email because you subscribed to Investment U. To unsubscribe from Investment U or to manage your account, click here To cancel by mail or for any other subscription issues, write us at: Investment U Attn: Member Services 105 West Monument Street Baltimore, MD 21201 Keep the emails you value from falling into your spam folder. Whitelist Investment U. Question? Comment? Need help? Contact us here. 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