Stansberry Research

Four Things to Know as Stock Markets Fall

March 9, 2020

Dear reader,

As stock markets across the world suffer huge losses, we want to write a quick note conveying four things:

  1. Don't panic. We've seen big drops in the market before, and we'll see more after this one. Stocks tend to move wildly in the short term as the world tries to assess new information and reprice companies to fit what it learns. While others rush to snap decisions, we encourage you to stop, take a deep breath, and focus on making the best long-term decisions for you.
  2. Make sure you're financially stable. While we don't want you to blindly sell great companies at bad prices simply because it looks like everyone is doing that... you should make sure your financial house is in order and not overextended. Now is not the time to be "out over your skis" with your portfolio. Don't buy into this dip if you can't afford to. And sell some things if you must. (On a more positive note, now may be a GREAT time to go through with that mortgage refinance – rates have never been lower.)
  3. Take care of whatever else you need to. Whatever will help you sleep better at night and make better long-term decisions, go ahead and make it happen. Raise a little cash. Invest in more portfolio protection if you're lacking. Buy some gold if you haven't already. And beyond your portfolio, why not limit your downside where you can? Reconsider that unnecessary flight or cruise. Buy a few more supplies, food, and water to have on hand. Chances are good that these precautions are unnecessary, but why not be a bit more prepared?
  4. Know that we have your back. The analysts and editors at Stansberry Research are working tirelessly to make sense of the markets right now. You'll likely hear from many of them in the coming days and weeks. We'll discuss our latest macro thoughts on the coronavirus, oil prices, interest rates, or whatever else is moving the market. In particular, keep your eye on the Stansberry NewsWire feed and the evening Stansberry Digest. In those two free publications, we'll provide as much news and perspective on the market's action as possible.

Also, please make sure to honor your trailing stops if and when they're triggered. Cash is king in this kind of market. Trailing stops are designed to preserve your capital and ensure you can get back in the game once the panic subsides.

Finally, we'll likely begin to flag some spots where you can soon lean into this market and play offense. Because – for those investors who are adequately protected and can invest for the long term – we're already beginning to fill up our "shopping list" with some excellent opportunities to buy world-class companies at fire-sale prices.

Most of all, know that we believe this, too, will pass. But in the meantime, we'll continue to deliver the best possible investment research we can.


Austin Root
Director of Research
Stansberry Research