The latest Closing Bell podcast is available now - Fat Tail Daily

What we do know is that good stocks get dumped alongside the bad in sell offs like this. The first place to look is stocks that have nothing to do with tariffs!

The US markets just had their biggest selldown since Covid.

I’ve been around a while now. I traded and advised through that Covid collapse.

We might have a panic on now…but now’s the time to get MORE interested in markets than less.

Why?

The market ripped back hard after that Covid collapse. It could again. We can’t be sure, of course.

But what we do know is that good stocks get dumped alongside the bad in sell offs like this.

The first place to look is stocks that have nothing to do with tariffs!

Imagine, for a moment, you’re a medical device company that manufactures and sells in the US.

Do you have a problem?

No. In fact, you now have a cost advantage over international competitors.

Anyway, it just so happens that medical device company is in my buy list.

There’s also a gold company I expect to get taken over before this gold bull market is over.

What about the general market?

Here’s a chart James Altucher just shared with us recently, showing the returns from the US markets after every recession from World War 2 up until 2020.

The longer out you look, the better the returns…

Fat Tail Investment Research

Source: NBER, Returns 2.0

There’s no guarantee history will repeat. But the odds suggest it.

I’ll also share some thoughts from my mate Chris Mayer (author of the book 100 Baggers), a thoughtful man and investor…

“Whatever is happening in the news seems important at the time. But it soon fades.

“I am confident the tariff drama will be no more than a blip on a chart when we look back, much like the COVID lockdown in 2020 has become a blip.

“After tariffs, there will be some new drama. There always is a new drama.

“However, great performers, as we’ve seen, can power through the dramas over time. The most important thing is to focus on the business and as long as it’s performing, you hold on.”

Easy to say, harder to do.

As above, I’ve got 5 I think are great buying here. But you might need to wait 6-12 months for the big payoff. But you’re getting a cheaper look than otherwise.

In the short term, markets are a wild ride.

That brings me to today’s Closing Bell.

Murray Dawes walks you through the key markets he’s watching… and where we might go from here.

Best wishes,

Callum Newman,
Editor, Small-Cap Systems and Australian Small-Cap Investigator

PS.: Speaking of my colleague James Altucher, he’s a handy man to have around now. He’s lived and invested through the Dot.com bust in 2000, US bear market in 2002, GFC, Covid…and now today.

How many Wall Street veterans do you know? Probably the same as me…none (except James).

We just launched Altucher’s Investment Network Australia. The latest issue goes out to today. If you want to know what James thinks of Trump’s tariffs, sign up now.

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Callum Newman is a real student of the markets. He’s been studying, writing about, and investing for more than 15 years. Between 2014 and 2016, he was mentored by the preeminent economist and author Phillip J Anderson. In 2015, he created The Newman Show Podcast, tapping into his network of contacts, including investing legend Jim Rogers, plus best-selling authors Jim Rickards, George Friedman, and Richard Maybury. He also launched Money Morning Trader, the popular service profiling the hottest stocks on the ASX each trading day.

Today, he helms the ultra-fast-paced stock trading service Small-Cap Systems and small-cap advisory Australian Small-Cap Investigator.