Checking In On The Worst Stocks

JC Parets
June 20, 2022

How's the Bear Market treating you?

We're going on over 16 months of this so far, and counting....

Remember, stocks peaked in February of 2021, meaning that was the best things were for stocks during this cycle. And it's been a slow deterioration ever since.

The first stocks to peak are what we refer to as the "Culprits". Every bear market has that group that you can point to as the leaders to the downside.

We came into 2022 with a close eye on those Culprits (see here) and we've continued to monitor their declines.

If you haven't been following along, those groups include Chinese Internet, Biotechnology, the IPO stocks, and of course Cathie Wood's ARKK Funds, who have become the poster child for this latest bubble.

But a funny thing happened 6 weeks ago - they all stopped going down.

And the leader to the upside has been Chinese Internet (yes you read that right, I had to run the numbers multiple times to believe it myself).

Look at these returns relative to the S&P500 over the past month and a half:

These are the culprits. These are the worst stocks on the planet.

And they stopped going down 6 weeks ago. In fact, Chinese Internet bottomed out in March.

So while the major indexes and many other stocks have continued their declines, this cycle's "culprits" stopped going down already.

Do you think this is just a temporary pause within ongoing downtrends?

Or is there information here?

We'll be discussing all of this and so much more on tonight's mid-month conference call.

Premium Members of ASC can register for that here, if you haven't already.

And if you can't make it live tonight, the recording of the video and slides to download will be available here.

But we do encourage you to try to make it live so you can ask questions.

See you tonight 6PM Sharp!

- JC

*PS - if someone tells you that it's not a bear market until the S&P500 falls by 20% you have my permission to call them a moron, and you don't have to feel bad about it. You can tell them I sent you.

 

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