The Great Reopening, Part 1
“It’s tough to make predictions, especially about the future.” — Yogi Berra
On March 13, 2020, I issued what I considered a “generational” buy alert on the stock market. It would turn out to be the call of my and my crack team of market visionaries’ careers.
Many of the stocks we recommended right before the nationwide lockdowns began have gone hyperbolic.
That’s because we had a specific thesis for recommending them.
One of the stocks we recommended has gone up 351% in the last 15 months.
That stock is Square (NYSE: SQ). It was one of Christian DeHaemer’s “cashless” plays he recommended right before the lockdowns began. It was the trade of a lifetime.
And yet another one of his “cashless” stocks — PayPal (NASDAQ: PYPL) — has doubled in that same period too.
Chris has been destroying the market averages during the pandemic with his predictive prowess.
Today, he has four new stocks he’s recommending for immediate purchase. But this time it’s based on our investment thesis "the Great Reopening."
In fact, one of Chris’ all-star stocks in the Great Reopening is up 269% just since October 2020, when it was clear the global economy was headed for a massive rebound.
However, it’s important that I recount the events as they happened over a year ago... and why I think we are about to go on a historic stock market rally.
Like I said, it all started on March 13, 2020. On the day I issued my buy alert, the Dow had already cratered, down 28% from its highs marked on February 12. It was a bona fide crash. And quite frankly, the bottom was nowhere to be found.
It was like catching a falling knife. The Dow would lose another 3,000 points in the coming days.
The markets were in an all-out free fall over fears of a pandemic that, by some expert predictions, would kill 50 million–100 million people worldwide.
We would later find out that experts can be expertly wrong… and, perhaps, misleading with nefarious intentions. But still, it was hard to be a buyer against that backdrop.
I didn’t waver. I kept to my plan and kept buying the market.
You see, my buy thesis was all based on logic, historical precedence of previous crashes and crises, and a healthy skepticism on the sheep mentality I was witnessing.
The returns have been life-changing. Like I said earlier, it was a generational buying opportunity.
And now I see an even bigger profit opportunity. I’m calling it the Great Reopening.
In short, I believe human nature and the markets are about to repeat themselves from 100 years ago.
Let me explain.
The Great Reopening
I’m a student of history.
In fact, it was my minor in college. I had aspirations of being either a history or political science professor.
But I’m glad I became a professional investor. My free-thinking, nonconformist libertarian style wouldn’t have lasted long at a university.
When analyzing stock market trends and making predictions, it’s important to study what came before. The stock market is just as much about human psychology, human routine, and instincts as it is about numbers. I always say: History doesn’t repeat itself, but human nature does.
So it is with the stock market today.
With the global economy getting pumped with juice for a reopening, there are certain reasons we can expect the market will follow what happened before.
For that, we turn to the 1920s. The similarities between the 1920s and the 2020s simply can’t be denied or ignored — especially if you’re an investor.
Here’s what the U.S. was experiencing in the early 1920s:
- The end of the Spanish flu pandemic.
- The aftermath of World War I.
- Social and political unrest (U.S. Communist Party rioting from coast to coast).
- Social and political liberation (women’s suffrage).
- Cancel culture (Prohibition).
- A great social flowering with jazz clubs and speakeasies.
- A technological explosion with mass adoption of electricity, indoor plumbing, airplanes, automobiles, radios, refrigerators, and washing machines.
It gets even more similar.
Between 1920 and 1921, the U.S. economy experienced a brutal recession. The economy contracted nearly 5%, unemployment rose to over 11% (the highest recording for its time), and the Dow lost 32%.
In fact, the loss in the Dow in 1920 is almost a carbon copy of what happened last year.
Here’s a superimposed chart of the Dow today versus in 1920:
As you can see, the Dow in 1921 rebounded after its crash. It then went on to a historic bull run that saw it increase by almost 500% in nine years.
If that were to happen again this decade, the Dow would increase to 111,180 from current levels.
And I think it will, for reasons I’ll lay out in Part 2 of the Great Reopening.
But in the meantime, I urge you to take a look at this special presentation Chris DeHaemer has released on his Great Reopening investment outlook.
In it, he discusses the four stocks he thinks are poised to generate massive profits for investors as the global economy rebounds from a near-zero level.
He explains his thesis, the four stocks he likes in this environment, and why this decade could be one for the ages.
Remember, Chris’ two stocks he recommended right before the global lockdowns were “cashless” stocks — stocks that were poised to take advantage of a cash-free and hands-free form of exchange as people desperately tried to avoid contact with other humans.
It paid off to the tune of 351% and 201% gains in Square and PayPal, respectively.
Brian is a founding member and President of Angel Publishing and investment director for the income and dividend newsletter The Wealth Advisory. He writes about general investment strategies for Wealth Daily and Energy and Capital. Known as the "original bull on America," Brian is also the author of Profit from the Peak: The End of Oil and the Greatest Investment Event of the Century, published in 2008. In addition to writing about the economy, investments and politics, Brian is also a frequent guest on CNBC, Bloomberg, Fox, and countless radio shows. For more on Brian, take a look at his editor's page.
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