Thursday, April 10, 2025

Is This a False Recovery or the Real Deal?

Total Wealth

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Dealmaker's Diary: Why This Rapid Correction Could Mean Rapid Returns

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Alpesh Patel

Alpesh Patel
Quantitative Investing Specialist

Everyone's asking the same question...

Is this a V-shaped recovery or are we headed lower?

The one-day change in the S&P 500 has been dramatic, though not unprecedented.

We've seen massive gains during bear markets before.

The real question is whether this resembles the COVID pattern, where we never saw those lows again, or more like 2022's pattern of rallies followed by new lows.

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What's caught many off guard isn't the correction itself (a 10% fall is actually normal), but rather the speed of the decline.

This was the fifth fastest correction in history, taking just 20 days.

But here's the good news: When the S&P 500 closes in correction territory, it returns to positive territory 86% of the time one year later, with a median gain of 18%.

I'm already eyeing the stocks most loved by hedge funds, looking for quality companies that could deliver 100% returns as they recover from these falls.

Depending on timing, that could mean annual returns of 15%-40%.

The opportunity is coming.

Let's get ready to make some money.

Click here or the thumbnail below to check out the full details of today's Dealmaker Diary.

Happy hunting,

Alpesh

Video - Is This a False Recovery or the Real Deal?
 
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