Slay the Stock Market Devil

Written by Jimmy Mengel
Posted February 7, 2018 at 7:00PM


“Tis no sin to cheat the devil.”
- Daniel Defoe

As you well know by now, the stock market had an Armageddon moment last week. It sent investors panicking, talking heads screaming, and a historic flood out of the market.

But the armchair biblical scholar in me only recognized one thing: the amount that it dropped.

On February 2nd, the Dow closed down 666 points — the largest drop since 2008.

666 is the “number of the beast”, as popularized in chapter 13 of the Book of Revelations. It is now known as the number that is used to invoke Satan or the Antichrist, and people of all faiths, all over the world, avoid it at all costs.

As it was written:

Who is like the wild beast, and who can do battle with it?

Let the one who has insight calculate the number of the wild beast, for it is a man’s number, and its number is 666.

It looked for a minute that nobody wanted to do battle with it: fear sent the market dropping yet another 1,175 points — the largest drop in DOW history. Some shaky investors began predicting the end of the stock market as if it were the end times of humanity itself.

I’m here to tell you that you really shouldn’t be scared...

Without giving up my spiritual take on things, I'll give you my pragmatic take on things. That 666 point drop didn’t scare me a bit. Nor did the drop right afterward. I'm buying more of the companies I know will weather this storm.

I’m a long-term investor, and I am acutely aware that the market — just like humanity — will get greedy, will implode itself, and — eventually — correct itself. It has played out time and time again with the stock market, and is a healthy cycle that eventually rewards smart and patient investors.

But most of the stocks I buy aren't done through a broker. I keep most of my long-term investments in what is called an “Underground Stock Market” that is basically immune to market fluctuations like this.

It essentially allows you to beat the devil at his own game, and battle the beast without getting bloody in the process.

You see, I know full well that the stock market can be a devilish ghoul. We’ve seen it time and time again…

  • October 28th, 1929 — The “Great Crash” knocked Wall Street down 12.82% and jumpstarted the Great Depression.
  • October 19th, 1987 — The “Black Monday” crash dropped stocks 22%.
  • September 17th, 2001 — The Dow fell 885 points and continued to fall — losing over 4% in a week
  • September 29th, 2008 — The housing bubble burst and sent us into the latest recession. The DOW fell 777.68 points

These things happen. But if you play your cards right, you’ll always come out ahead

Here's how things worked after each crash:

  • 1987: The Dow closed 1987 at 1,939, gaining back all of the loss and ending up 2% for the year
  • 2001: The Dow closed 2001 at 10,021 — a 21% rebound in less than three months
  • 2008: From the March 9 lows to the end of 2009, the S&P 500 soared 64.83% while the NASDAQ gained 78.87% and the Dow gained 59.28%

All you need to do is keep calm and start buying.

While the talk of a market crash can get your blood pumping, your eyes twitching, and send you into hair-ripping despair, that is exactly what you need to avoid to make yourself a successful post-crash investor. That's why it helps to boil down emotions and reactions to simple patterns.

Just check out this famous chart:

We're approaching the maximum pessimism territory... but we're not there yet. And that period never lasts as long as you'd think, so you best start getting prepared now...

It's like investing legend Peter Lynch once said, "The real key to making money in stocks is not to get scared out of them."

I'm not scared, I'm buying stocks I want to hold onto forever...

Personally, I follow a two-part system that completely shields you from fear. It is a system I set up to avoid losing my shirt during market downturns and keep my money out of the pockets of greedy financial advisors at the same time.

The first step is to buy a small handful of dividend stocks. But I'm not talking about throwing darts at a list of big blue-chip stocks. I focus much of my portfolio on dividend aristocrats — a select group of companies that have raised their dividends for at least 25 years in a row. Not only does this type of stock produce a consistent income stream for you to use as you please, but the stocks themselves have returned 183% over the last decade — almost double the S&P 500 over the same time frame.

The second approach I take completely bypasses the brokers and financial advisors. It taps into a secret "Underground Stock Market" that allows you to buy stocks directly from the company itself. The bulk of investors have never heard of this strategy because the SEC forbids companies from advertising it.

This plan allows everyday folks to collect "dividend multipliers" on a select group of stocks like the ones I mentioned. You can start with as little as one share. All you do is set it, forget it, and watch it multiply as if on autopilot.

And your broker sure isn't going to tell you about it, because he won't make a dime off of it.

I have packaged the entire strategy in an easy-to-follow program.

While investors are panicking and selling off for major losses, your investments are shielded. In fact, you actually accumulate MORE shares during downturns, and they keep paying you when the market is down.

When you invest in companies on this “Underground Stock Market”... you are getting 45% to as much as 129.5% more returns than if you had bought the exact same shares on the “regular exchanges.”

If you are concerned about the market volatility — or even a full-out crash — I urge you to check in on the “Underground Stock Market”.

It is perhaps the only way you can sleep soundly without worrying about the devil stealing your breath while you slumber.

Godspeed,
jimmy-mengel-signature-fixed

Jimmy Mengel

follow basic @mengeled on Twitter

Jimmy is a managing editor for Outsider Club and the investment director of the personal finance advisory, The Crow's Nest, and cannabis stocks advisory, The Marijuana Manifesto. For more on Jimmy, check out his editor's page.

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