The Silver Lining to the Sports Ban
Dear Penny Stock Millionaire,
I love sports. Growing up, they were a huge part of my life. I played tennis throughout my childhood. Then I suffered a career-ending injury to my elbow.
My career was cut short, but the lessons I learned through sports shaped me. The intense competition and drive I gained on the court helped me. I took those lessons and applied them to trading.
After surgery, with time on my hands, I channeled my focus into learning the stock market. I was already experienced at putting in the grind to achieve success. I knew how to get good at something from the dedication and determination I developed through tennis.
And I found success in the stock market — where the odds of success are small
The Sports Ban Silver Lining
Sports are a rite of passage for many young children. But today… as our world faces an unprecedented coronavirus pandemic… sports are nowhere to be found.
The NHL, NBA, and PGA have all suspended their seasons. America’s pastime is officially postponed.
It’s disappointing for fans and tough for the entire industry. But it can also be a chance for you to up your trading game. If you want to learn to trade smarter, dedication and determination are key. Now, with the coronavirus sports ban, you have time on your hands.
And it’s not only sports. President Trump’s national emergency declaration is shutting everything down…
The Global Destruction of COVID-19
We’ve never seen anything like this. A lot of people are buying up blue-chip stocks, thinking we’ve hit the bottom. I know some rich people who bought Boeing (NYSE: BA) when it was around $150–$170 per share…
Then it tanked again to around $100.
We don’t know where the bottom is.
Industries that have never closed are being forced to shut their doors.
And there was no toilet paper. Absolutely none. When it comes to life and death… I guess people are more worried about toilet paper than making the world a better place.
As for the athletes, I sympathize with them. They’ve worked their entire lives to make it to the highest level. And now an unprecedented virus is destroying chances of winning championships.
But at the same time, I admire the drastic steps organizations and institutions are taking to protect athletes, students, and the general population. When I first wrote about the coronavirus (or the COVID-19 virus) about a month ago, I didn’t know how devastating it would be in the U.S.
COVID-19 Stock Market Effects
Could we have seen this coming? Absolutely. We could have prepared more. But hindsight’s always 20/20.
On March 8, there were 500 confirmed cases in the U.S. On March 15, that number jumped to 3,000. On March 20, Mayor Bill de Blasio declared New York City the epicenter of the crisis in the U.S. We are now almost up to 150,000 cases in the US. People who have it but don’t have symptoms are walking around thinking everything’s fine and spreading the virus even more.
That puts us at more risk. The virus could mutate and become more deadly.
There’s so much we don’t know about this pandemic. And too many people seem to think the virus is a joke. Government officials attempted to calm the public… which only resulted in more misinformation spreading.
Then as more countries around the globe went on lockdown and the world saw a surge in cases…
The stock market crashed … It’s down nearly 30% off it’s all-time highs from less than a month ago. We’re seeing crazy volatility.
COVID-19 isn’t the only cause of the drastic pullback and bear market… But it’s a major player.
Don’t Assume the Market Will Bounce Back
I often say I’m a glorified history teacher. And this is when history really matters.
Look at what’s happened with past pandemics. During the 1957 pandemic, stocks didn’t come back that quickly. Same with the 1918 pandemic. Look at the Great Depression. Study!
We don’t know what’s going to happen. We’re in Great Depression territory in terms of this crash — the price action is similar to 1929. Again, we don’t know where the bottom is. It all depends on this virus, which is unpredictable.
I’ve been doing this for over 20 years. I don’t know everything. But I find my experience helps me give good, sane, and conservative commentary and perspective.
Be careful who you follow. Some of these ‘gurus’ aren’t bad people … but their lack of experience and knowledge can hurt you.
There’s so much opportunity if you get away from the mainstream strategy BS out there. Focus on being a meticulous trader.
For example, Biomerica, Inc. (NYSE: BMRA) announced its rapid-results coronavirus test on March 17. On March 18, it opened at around $6. It went up to the $14s in after-hours trading.
Then there’s Blue Apron (NYSE: APRN), which quadrupled last week.
You don’t have to invest in ETFs and guessing-game blue-chip stocks.
You just have to be a little meticulous. The best investment you can make is in yourself. I’ll get to several ways you can do that in a bit.
America’s Love for Sports
With all this panic and uncertainty, it feels like professional sports may not return this year.
No one can say for sure. We’re only in the first inning of this pandemic.
We’re living in desperate times with no sports to ease the burden. Why are sports so important to us anyway? I think Showtime’s hit show “Billions” explains our relationship with sports perfectly…
“… Sports franchises are how we knight people in this country…”
We worship our favorite players and teams. Fans paint their bodies, party all night to celebrate wins, and live vicariously through athletes.
And it’s not just in the U.S. People all over the world love sports with a fanatic adoration.
Sports Allow Us to Forget
In 2017, Americans spent an estimated $56 billion on sporting events.
That’s a massive industry to shut down. TV networks and pro sports organizations will face difficult times if the leagues remain suspended for an extended period of time.
Money aside — sporting events bring people together. In the current political climate and intense polarization, I feel we need sports more than ever.
And we’re in such unprecedented territory, people are scared. No one knows what to expect.
How long will this virus last? How much danger are we truly in? Will we survive this?
If America is one thing, it’s resilient. And a lot of us like to rally behind sports. It gives us a point of focus and pride.
For example, after the events of September 11, 2001 Americans were scared. The largest attack on domestic soil had the entire country on edge. When President George W. Bush threw the opening pitch at the next Yankees game, it was a powerful symbol of American resilience.
New York City and the U.S. were able to start the long healing process and rally behind our favorite pastime. The few hours of live sports united a lot of the country and drove the Yankees to the World Series championship.
What’s Next for America?
Statista estimates that over half the population watches more than three to five hours of NFL every week during the regular season. That’s just the NFL.
Once you factor in the MLB, NHL, MLS, and NBA, it’s likely most Americans spend close to 10 hours a week watching sports.
And now, POOF … sports are gone.
So what should you do with your extra 10 hours every week?
STUDY! STUDY! STUDY!
Learn to trade. If you already know how to trade, learn to trade smarter. This is a perfect opportunity to focus on your education and improve your life.
A lot of people will probably sit around, play video games, or watch Netflix. But you’re different… right? You’re dedicated to actively improving your life.
In 2018, Netflix viewers spent over 52 billion (BILLION!) minutes watching “The Office.” They spent nearly 33 billion minutes watching “Friends.” Don’t add to this statistic. Don’t be lazy right now. This is your…
Look … I know the phrase is cliché. But this quarantine is a once-in-a-lifetime opportunity. How often does the world force you to self-quarantine for 14 days with more on the way?
Are the conditions ideal? No. I’m not gonna sugar coat it… it’s scary out there.
But as Warren Buffet says:
“Be fearful when others are greedy and greedy when others are fearful.”
The entire world is scared right now. So get greedy — for knowledge. Learn to trade smarter and be self-sufficient in the market.
Don’t just shut down and weather the storm. We will get through this. I want to see each and every one of you better off than the lazy competition. This is a unique moment in time. And you can learn so much from the markets right now.
And given how a huge part of the world is shutting down, it’s a smart time to…
Learn to Make Money From Home
Here’s some inspiration for you … More millionaires made their fortunes in the Great Depression than any other time in history.
It sounds counterintuitive, but it’s true…
Times of economic or social uncertainty can offer unparalleled opportunities to those willing to take risks. Stocks are cheap, money is tight, and risks are high. During these times, most people freeze. They don’t act … Instead, they let opportunities slip away.
Don’t let this be you.
Will COVID-19 plunge the U.S. into a recession? I honestly don’t know.
But I’m glad we’ve entered a bear market. I’ve been praying for one for years. I think it’s healthy. It’s part of the natural economic cycle. The U.S. just experienced its longest bull run in history. The economy is simply taking a break. Things will cycle through and we’ll eventually go higher.
Take this time to study. Many of you have time off to work your butts off.
Bottom Line: Learn to Trade Smarter Now
I have no idea how long it will take to recover from this coronavirus crisis. The economic impact of this will be huge. Remember, It’s not just sports… Tourism, small businesses, entertainers around the world will take a huge hit.
We could be out of the woods in a few months … or it could take several years. Don’t let this scare you…
Uncertainty breeds opportunity.
My question to you: how will you answer the call?
Hit those books. It’s time to study.
Editor, Penny Stock Millionaires