If you have been paying any attention to the markets – I really hope you haven’t been because it’s usually a waste of time – you know that stocks have been pretty volatile of late.
There are fears the economy is growing slower than we all think and earnings growth will slow or maybe even decline. There are fears that it’s growing faster than we all think and the Fed will be quick to raise interest rates. And there are fears about what the California wildfires will do to the California electric utility companies’ balance sheet (Hint: It’s not pretty). If you can dream it, some breathless prognosticator has blamed it for the recent stock declines.
Right now, we are seeing some very dire forecasts from some very smart people suggesting that stocks have a lot lower to fall. Goldman Sachs reported last week that its bear market indicator is at the highest level since the 1970s.
But even amid these dire forecasts, we have reason not to fear. One strategy returned 42.32% and 79.81% even during the most worrisome of times.
Let’s take a look…
Last week, we looked at how financial companies are feeling the pain of lower fees.
But I hinted at one group of financial companies that is not feeling the pain.
It’s one of my favorite groups to own. So when the market sold off last month and these stocks began falling towards a Cost of WAR of less than one, I was pretty excited and ready to break open some bubbly.
Unfortunately, the decline halted and stocks have rallied back, so I did not get a new opportunity to buy them. The numbers are getting there, and I hope that before too much longer I can send Heatseekers members the call to arms with buy recommendations of these powerhouse firms.
This group of financial companies is private equity firms.
It’s hard for most of us to invest directly in a private equity fund, since most require you to be an accredited investor and have minimum investment levels of millions of dollars. However, we can buy shares of private equity firms and reap the benefits of the high returns they earn.
Let’s take a look at exactly how to do so…