If You Invest With Your Emotions, You'll Tank Your Portfolio
Doc's note: It's one of the hardest pieces of advice for any investor to follow... Don't trade on your emotions.
And today, Wall Street legend Marc Chaikin explains why the increasing risk of a bear market means it's time to get your emotions in check...
The "Oracle of Omaha" is the world's most famous investor...
I'm talking about the legendary Warren Buffett, of course.
At the beginning of May, Buffett announced he would be retiring from his role as CEO of Berkshire Hathaway (BRK-B).
During Berkshire's annual meeting, Buffett said he would step down at the end of this year.
After that announcement, Berkshire's stock dropped as much as 15% in the months following.
Of course, the S&P 500 Index was in "growth mode" at that time. It was staging an incredible recovery from its April lows. So Berkshire's relative strength versus the index collapsed.
Berkshire's fall also caused the Power Gauge (our proprietary system that shows which stocks are buys and which are sells) to rate the stock as "bearish" for the first time in nearly five years.
And even worse, our system hasn't given Berkshire a "bullish" rating since May. Take a look...
Sure, everyone knew Buffett would eventually step down as the head of Berkshire. But the announcement itself still came as a shock. And as I said back in June, investors are still asking – what is Berkshire Hathaway without Warren Buffett?
Buffett isn't just a famous investor... He's a beloved one. And Berkshire's stock has similar sentiment.
To be clear, I'm not saying Berkshire is doomed. But unfortunately, many investors allow themselves to get emotionally attached to the stocks they hold.
Folks, following your emotions is not a smart way to invest...
Stocks that you know and love can crash harder than you ever expected. And no one wants to lose money because they simply couldn't let go of an investment.
Looking ahead to next year, I'm foreseeing big changes for the market...
In short, there's a 65% chance that we'll see a bear market in 2026.
And there's a good chance that stocks you're holding right now might not fare well in this shifting environment.
But we don't have to lie down and take the losses, folks. We can protect ourselves...
Good Tools Make Informed Investments Easier Than Ever
Of course, here at Chaikin Analytics, we have the Power Gauge at our side. It's built from my decades of experience on Wall Street. And it's the centerpiece of everything we do at this firm.
Sure, stocks go up and down daily. It's the name of the game.
But it's difficult for the average investor to figure out if a stock's decline is temporary and if it will bounce back shortly... or if the stock has room to fall further and they should run for the exits.
It's even harder to make that decision when emotions cloud your judgment, folks.
If you follow the Power Gauge, you know the importance of having powerhouse tools in your corner.
That's why, on Tuesday, December 16, I'm stepping in front of the camera to make a critical announcement.
I'll be talking about an important tool...
And to help share the details on it, joining me is a special guest who has essentially dedicated his career to timing big shifts in the overall market.
We've never teamed up like this before. And we're doing it to share a brand-new, never-before-seen tool to help you prepare for 2026 specifically.
Folks, there's a good chance that we have a bear market in store for us next year...
As investors, it's critical to prepare accordingly. We don't want to let our emotions take hold... and lead us to ride a beloved stock down during a brutal, volatile sell-off.
That's why it's so critical to know what to sell in the short term. And what we should be holding through that volatility.
I urge everyone to tune in to this big event on Tuesday. It's free to attend. But you need to register in advance...
Get more details and reserve your spot for this critical message right here.
Good investing,
Marc Chaikin