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Recover 2022 stock loss with 2 safe and sure steps

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Some losses are so bad that it is dead money…

look i know many Any of you A few sketches came into stock over the years. I’m not going to name names, but as the father of two kids, I can tell when something’s wrong.

Our safe dividend stocks have performed better than anything else in this market. We’ve been cautious since late ’21, booking profits along the way. As market tops, we used to sell early and often to raise cash.

So if you’re writing to me about dead money, let’s face it, you’re doing something bad. Maybe it was tech or crypto or NFT. or whatever.

We are not going to do justice to these pages. In fact, we’re going to help you recover Responsibly.

But this time promise me that we will all respect the giant sucking voice of 2022. (Gone but never forgotten, Ross Perot.) As we’ve discussed time and again (and again and again!), the Federal Reserve is pulling liquidity from the financial system to quell inflation.

It’s Bad For Stocks, And As Long As The Fed Is No Our friend, the market at large will remain a challenge.

So let’s end our mourning for your loss. whatever you got outside of us Contrarian Outlook Community, I bet it went up like crazy until it did. When the pace turned, it accelerated. Maybe you thought you would sell and book profits, but that moment came and went.

If so, you are not alone. Many other investors have suffered a sharp setback of ’22 fall’. Like you, they’re still some big losers, wondering what they should be doing with these stock skeletons.

It’s 20% off. Now 40%. 50%. It will bounce!

Well, it didn’t happen. These things got trashed. Every support level was wiped out immediately. (Important Lesson: Support is Plenty low Helpful during the fall.)

Taking losses in bear markets is a painful but important exercise. It is better to do this late than never.

Overall, knowing when to buy is easier than knowing when to sell. Real pros know the importance of freeing a loser.

Investment life comes to you fast. And I get it because I myself was there in 2008.

If you think crypto is high octane, you should have looked at my futures account in the mid 2000s. As Brazil turns its sugar crop into ethanol fuel, your investment strategist loads up on sugar contracts.

It was great for a while. From 2004 to 2008, I increased the account from an initial $2,000 stake to $154,000. Then all the bear markets hit the bear market, and I didn’t know how to adjust. My tropical island has come and gone!

But more importantly, I learned how to navigate a bear market. Everyone has to learn the hard way. And if this was your first lesson, well, cool. It had to happen sometime or the other.

now? Get out of this hole with a safe, secure strategy that works really well in bear markets.

There is a way to bring this dead money back to life. We need to double that. And thanks to cheap valuations, we can do this quickly through dividend stocks.

This is a twist on our basic retirement on dividend strategy, where we get a safe 8% return. Big payoffs are great with a pile of dough.

When we are sitting on a million bucks, we can generate $80,000 a year with an 8% return. Most years, this is as good as it gets.

But the bear market is a gift. They give us a window where we can double our money fast.

Here’s what I mean. In April 2020, we had five dividend producers selling at the fire sale price. So, I put this flash alert in my . sent to hidden yield Customers to purchase all five:

April 2020 buy alert

Contrarian Outlook

These five timely purchases gave an average return of 24%. Good.

Solid returns from April 2020 buys

Contrarian Outlook

This type of opportunity I hope we will see soon.

Do we always buy at the big lower level? No not at all. And frankly, it is possible to double our money every few years without worrying about the next move of the market. I’ll show you an example.

In January 2020, we added UnitedHealth (UNH) For us hidden yield portfolio. This was two months before a serious stock market crash. Big picture, it didn’t matter because:

  1. UNH was increasing its earnings by 10% or more every year.
  2. Thanks to these profit margins, UNH’s dividend was doubling every few years.

UNH’s price-to-income (P/E) ratio of 21 wasn’t bad for a high-quality income producer, but it wasn’t cheap either. However, on a free cash flow (FCF) basis, the stock’s multiplier was a more modest 17.

Remember, profits are an accounting construct whereas cash is cash. Knowledgeable chief financial officers strive to minimize profits (and taxes) while maximizing cash. UNH was cheaper a cash Base.

Also, we saw an inflection point. The firm’s Optum unit was gaining momentum and was poised to overtake UNH’s core business in profits. More importantly, Optum was No Regulated like a health insurance business, which allowed it high profit margins.

Business was good and poised to get better while Optum continued to grow. UNH’s rapidly growing dividend was likely to climb.

We couldn’t wait to take the plunge, we just bought.

Oops! Two months later, a major drop hit the entire stock market and took UNH down with it.

Did not make any difference. Our awesome time worked out great! We persevered and today, we are receiving a quarterly dividend that is 53% higher than the dividend we bought two and a half years ago.

But wait, there’s more. As payouts climbed, so did UNH’s share price. We’re sitting on a total return of 79% (including dividends), nearly doubling a dividend in a little over two years.

If it weren’t for this brutal bear market, we might already be up 100%. But hey, that’s fine. We have a few extra months to add new money to our UNH position while the broader stock market circles the bowl.

When the Fed finally pivots, the UNH will actually take off. These types of dividend producers are really the safest and safest way for us to double our money in stocks.

No matter what happens in the market over the days, weeks and months, Stock prices eventually follow their dividends, Show me a dividend that will double over time, and I’ll show you a stock that will double your money.

Brett Owens is Chief Investment Strategist Contrarian Outlook, For more revenue streams, get your free copy of their latest special report: Your early retirement portfolio: Huge dividends—every month—forever.

Disclosure: none

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