I WARNED YOU in mid-JANUARY. Now what are you going to do. – read below
If there’s one thing you can count on in this world, it’s folks losing their minds the moment the stock market hiccups. They’ll throw perfectly good investments out the window like a gambler chasing ghosts. That’s when you, my friend, pour yourself a strong cup of common sense and go shopping.
See, the secret to wealth ain’t in timing the market like a magician or whispering sweet nothings to a crystal ball. It’s about keeping your head while others are digging financial graves with their own fear.
Wall Street’s got a hundred clever sayings, but here’s the one worth tattooing on your ledger: “Be greedy when others are fearful.” Sounds simple. Ain’t easy. You’ll need guts, grit, and a good grip on your emotions. But if you can manage that, you’ll buy diamonds when everyone else is busy selling coal.
Markets rise, markets fall. Politicians grandstand. Experts over-explain. But wealth? Wealth sticks to those who keep their heads, check their charts, and know a bargain when it’s wrapped in bad news.
So don’t chase fads. Don’t follow the crowd. And don’t ever underestimate the power of patience in a panicked world.So saddle up. We’re about to ride straight into the panic—and come out the other side with pockets full of opportunity.
And there you have it—while the rest of the town is screamin’ “Fire!” in a rainstorm, you’re calmly gathering buckets of rainwater to grow your future fortune.
Because in the end, the best fortunes aren’t built during the sunshine—they’re built during the storm.
Now go on—be wisely greedy. The fearful have already done most of the hard work for you.
“April. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, October, November, May, March, June, December, August, and February.”
In other words, markets are always wild—but when the whole crowd is running scared, the shrewd investor quietly builds wealth.
How to Get Rich by Being Greedy When Others Are Fearful
A Practical Guide to Profiting from Panic
Step 1: Understand Why the Market Is Crashing
❗ What Happened:
Tariffs were slapped on imports from China, the EU, and Southeast Asia—some as high as 49%. This sparked a global market crash, with the S&P 500 and NASDAQ experiencing their steepest drops since the pandemic.
💡 Why It Matters:
Markets hate surprises. These tariffs were not truly reciprocal, despite the name. They were based on trade deficits, not matching tariff rates—causing confusion, retaliation, and fear.
Step 2: Learn the Real Strategy Behind the Headlines
📜 The Economic Playbook:
President Trump’s trade policy is modeled after a strategy laid out by economist Steven Moran. It includes:
- Tariffs as leverage
- Reciprocal tariffs to force fair trade
- Weaken the U.S. dollar to boost exports
But the implementation is flawed. Many countries got hit with tariffs even if they had trade surpluses with the U.S., making it more like economic chaos than careful strategy.
Step 3: Don’t Panic—Prepare
🧠 Here’s the Reality:
Tariffs hurt global demand, which reduces company earnings and therefore stock prices.
But here’s your opportunity:
Prices drop, but the value often doesn’t. That’s the golden moment when smart investors buy assets at a discount.
🛑 DON’T:
- Rush in blindly
- Follow the herd
- Base decisions on headlines
✅ DO:
- Build cash while others panic
- Identify sectors unfairly punished
- Stick to fundamentals, not fear
Step 4: Know the Timeline – Crashes Don’t Last Forever
📈 Historical Market Patterns:
- Bull markets last ~4.3 years with +150% returns
- Bear markets average 11 months with ~–32% losses
- Even the worst drops recover within 2–3 years
⏰ Time Is on Your Side:
You don’t need to buy the bottom today. You have months, not minutes, to plan and position yourself.
Step 5: Use Data to Spot Fear—and Opportunity
🧭 The Tools:
- CNN’s Fear & Greed Index: Tracks 7 market indicators
- S&P Momentum vs 125-day average: Shows trend direction
- VIX (Volatility Index): High spikes = panic, reversals = opportunity
📊 What to Look For:
- Extreme fear in the market
- VIX spike stabilizing
- Market momentum reversing upward
That’s your buy signal. Don’t guess—watch the indicators.
Step 6: Start With Funds, Then Go Hunting for Deals
🧺 Safer Bets for New Investors:
- S&P 500 Index Funds
- NASDAQ 100 ETFs
These provide broad exposure to quality companies at discounted prices.
Step 7: Target Specific High-Quality Stocks
When you’re ready to get more aggressive, consider these sectors:
1. Big Tech – Advertising and Consumer Platforms
✅ Google (Alphabet):
- PE Ratio: 18 (Very low for a growth stock)
- Estimated Upside: ~77%
- Undervalued based on discounted cash flow (DCF) models
- Resilient ad business with strong earnings growth
✅ Meta (Facebook/Instagram):
- DCF Upside: 75%
- Improved profitability post-metaverse spending spree
- Solid ad business and engagement metrics
2. Semiconductors – Core Infrastructure of the Digital Economy
✅ TSMC (Taiwan Semiconductor):
- Makes 90% of the world’s advanced chips
- Tariff fears are pushing price down
- Fair value ~$225/share vs current price ~$150
- Upside: 50%
✅ Nvidia:
- Currently trading at low PE relative to growth potential
- Estimated to be 20% undervalued, though actual upside likely higher
- Powers AI, gaming, data centers, and autonomous vehicles
I also like Exxon, Apple and GOLD.
Step 8: Diversify With Non-Stock Assets
🏠 Real Estate:
If you want stability outside of the stock market, real estate funds like Fundrise’s flagship fund offer exposure to:
- Single-family rentals
- Affordable housing
- Warehouses and commercial properties
- All starting at just $10
- See if you can buy some of your own RE – Plenty of Good Opportunity
Step 9: Practice Long-Term Patience
Buying during a crash isn’t about getting rich next week—it’s about positioning yourself for the next bull run.
“Bull markets make you money. Bear markets make you rich.”
You don’t need to time the bottom perfectly. You just need to act when others are frozen in fear.
Step 10: Turn Strategy Into Habit
✔ Watch for panic
✔ Track indicators weekly
✔ Build cash reserves
✔ Make a watchlist of high-value stocks
✔ Start small and add over time
This is not a one-time move. It’s a mindset:
“Be greedy when others are fearful” is a lifelong principle, not a weekend tactic.
✅ Summary Checklist: Your Crash Survival Plan
| Step | Action |
|---|---|
| 1 | Understand what’s driving the fear (tariffs, policy changes) |
| 2 | Recognize flawed economic logic—use it to your advantage |
| 3 | Stay calm and build cash |
| 4 | Use fear & greed indicators to track sentiment |
| 5 | Wait for signs of reversal (momentum, VIX) |
| 6 | Start with index funds |
| 7 | Add undervalued quality stocks like Google, Meta, TSMC, Nvidia |
| 8 | Diversify with real estate |
| 9 | Think in years, not weeks |
| 10 | Stick to your plan and stay disciplined |
Would you like this turned into a downloadable PDF guide or formatted for a blog post or presentation deck?
📉 Using the VIX as a Barometer: Knowing When to Buy
“When the wind howls loudest, that’s when the trees drop their sweetest fruit.” — Probably not Twain, but it sounds like him.
🧭 What Is the VIX?
The VIX, or Volatility Index, is known as Wall Street’s Fear Gauge. It measures how much investors expect the S&P 500 to bounce around over the next 30 days, based on options pricing.
- High VIX = Fear is surging
- Low VIX = Complacency and calm
It doesn’t predict direction, only intensity—but when fear spikes, it usually means investors are dumping good stocks out of raw emotion. And that’s when you start paying close attention.
📊 What Numbers to Watch
| VIX Level | Market Mood | What It Means for You |
|---|---|---|
| 10–15 | Quiet & Complacent | Stocks may be overvalued—be cautious |
| 16–20 | Typical Volatility | A baseline; not a clear signal |
| 20–30 | Elevated Fear | Start preparing, build watchlists |
| 30+ | Panic Mode | The herd is fleeing—get ready to act |
Spikes above 30 often signal maximum fear, which historically precedes excellent buying opportunities—but only if you wait for confirmation.
🛠️ How to Use It (Without Losing a Finger)
You’ve heard the phrase: “Don’t catch a falling knife.” That’s what buying too early feels like. It’s far better to miss the first 10% of gains than to be sliced up on the way down.
Here’s how to play it smart:
- Monitor the VIX regularly using tools like Yahoo Finance or TradingView. I like FinViz.
- Wait for the spike—above 30 is a red flag for panic.
- But don’t buy during the spike—wait for signs the panic is subsiding.
- Watch for the VIX to stabilize or trend downward—this tells you the “knife” is losing speed.
- Confirm with momentum—look for the S&P 500 to start moving back toward its 125-day average.
- Begin buying in tranches—a little at a time, increasing as volatility cools and fundamentals return to focus.
VIXX as of Apr 7 2025 9:30 pm
VIXY since last July to show volatility
⚠️ Remember
It’s better to miss the bottom by a little than hit it on the way down.
Chasing the exact bottom is like chasing ghosts in the fog. You want to wait until the fog starts to lift—yes, you’ll miss the lowest low, but you’ll gain the clarity to invest confidently.
“The fool jumps at the first sign of lightning. The wise man waits for the thunder to pass, then builds his house on the wet ground—while the land is cheap.”
The VIX will tell you when the sky is darkest. But don’t rush into the storm. Wait for the winds to settle, the noise to quiet, and then—only then—start gathering the bricks of your fortune.
🧯 Disclaimer: Please Don’t Bet the Boat
This content is for entertainment purposes only—like a bedtime story for financially curious adults. It’s meant to show you what’s possible, not promise you a yacht and a martini, or even a coffee.
We are not financial advisors, prophets, or time travelers. We’re not promising gains, promoting any miracle stocks, or offering you the secret handshake to Wall Street’s VIP room.
Your mileage will vary. In fact, some days your portfolio might drive off a cliff.
Always invest in the stock market like you’re walking into a horse track with a flask in your coat—hopeful, amused, and fully aware that the favorite might still lose to a horse named “Banana Pancakes.”
If you need real financial advice, talk to a licensed professional—preferably one with a tie and a calculator, not a boat and a blog.
Now go forth, be wise, be bold—but maybe don’t mortgage the house just yet.
EXTRA CREDIT
Investment Advice for 2025: Navigating Volatility and Protecting Your Portfolio
How to Survive and even Thrive in a Volatile Market
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