The Bear Market of 2018 took many stocks down 20% or more during October –December. Although this hurt 2018 returns (my Growth Portfolio was up 20% going into Q4 and ended the year at –4%) lower prices have now given us a once-in-a-decade opportunity to buy stocks at bargain prices.
Although our first thought might be to stay safe during a Bear Market, it’s often the riskier stocks that hold the most upside, as growth stocks tend to go down faster in a Bear Market, but do up more when the next Bull Market begins.
Going into 2019, I see opportunity in software stocks that make business more efficient and retailers that utilize the Internet to grow rapidly.
The charts in this newsletter are one-year charts, as of 2018 Q4, and show qtrly profit growth along the bottom/left, with Estimates for the next 2 qtrs bottom/right. Enjoy.
