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2022/07/14

Is This Bear Market for Real?

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AN OXFORD CLUB PUBLICATION

Wealthy Retirement

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Market Millionaire Discovers "Perfect Stock"

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He bought Amazon when it was trading around $30...

Netflix when it was around $2...

And Apple when it was less than $1 a share...

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Editor's Note: Our friends at Monument Traders Alliance - including the author of today's Wealthy Retirement, Head Trade Tactician Bryan Bottarelli - have been navigating the current bear market to near perfection in their live trading research platform, The War Room.

And they're celebrating a HUGE milestone.

So if you're interested in the chance to get 300 WINNING trades this year despite a rough market...

Or even the chance at making 300% overnight...

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- Kyle Wehrle, Assistant Managing Editor

Let's Put This Bear Market to the Test

Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance

Bryan Bottarelli

It's the biggest Wall Street debate of 2022...

Are we in a bear market... or not?

Everyone has an opinion.

On the one hand, I could easily make a case that we ARE in a bear market...

But on the other hand, I could easily make a case that we ARE NOT in a bear market...

There are plenty of facts and statistics to support both arguments.

However, if you're looking for one final, conclusive and definitive answer, I'm here to tell you it'll come tomorrow.

Specifically, the answer will be revealed when some of the major financial stocks report earnings.

You see, as I've been telling War Room members for weeks, financial stocks are cheap right now. Very cheap.

For example, Bank of America (NYSE: BAC) trades at 1.1 times book value, and Goldman Sachs (NYSE: GS) trades at parity to book value.

This means that if Goldman were liquidated tomorrow, the value of its assets at auction would be equal to the value of all of its shares at their current price.

Historically speaking, buying financials at these levels has been a savvy idea.

What's more, all of these major financial institutions recently passed this year's Federal Reserve stress tests - which means that they're prepared to withstand any further market weakness (should we see any).

But here's why tomorrow is so critical...

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"The S&P 500 has only been this expensive for 4% of the past 140 years." - Fortune magazine

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But you should NOT take your money out of the stock market.

Here's America's No. 1 retirement expert on what to do with your money NOW.

Before the open tomorrow, the following financial stocks are scheduled to report their earnings:

  • Wells Fargo (NYSE: WFC)
  • Bank of New York Mellon (NYSE: BK)
  • BlackRock (NYSE: BLK)
  • Citigroup (NYSE: C)
  • PNC Financial Services Group (NYSE: PNC)
  • State Street (NYSE: STT).

Here's what I'm looking at...

Chart: Citigroup's Performance
 

Of these companies, Citigroup will be the stock that determines whether the bear market is for real.

You see, of all these financial stocks, Citigroup is the cheapest. It trades at 50% of book value - the lowest valuation of any major financial company right now.

If Citi can rally off earnings, then we'll have a good idea that the market bottom is close.

If Citi CANNOT rally, then we'll know that there is more downside ahead - and that we're in a bear market.

To me, Citi's reaction to earnings tomorrow will be the clearest, cleanest and most telling illustration of whether or not we're in a bear market.

No matter what happens, it's critical that you're prepared to trade this reaction accordingly - which is exactly what we'll be doing inside The War Room. If you'd like to get in on the action, then you're invited to join our elite group of trade enthusiasts right now.

Click here to enter the room!

Good investing,

Bryan

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