The stock market is a battlefield. Everyday, millions of investors clash, fighting for profits in a never-ending struggle to beat the market. But this week, the fighting has gotten ugly, and a lot of good investors – maybe even you – are getting slaughtered.
Wall Street's “experts” are throwing gas on the fire, screaming that the market is about to crash, and it's time to head for the hills, but here at “Today’s Top Stocks” we aren’t listening, and you shouldn’t either.
In fact, we think this panic is creating a “once in a decade” opportunity, and we’re going to show you how to take advantage.
But first, let’s consider what’s really happening in the market.
As you know, September is historically the weakest month of the year for stocks. The S&P 500 has posted losses more than half the time, and this year is shaping up to be no different. On Tuesday, the benchmark index plunged 2%, triggering fear and panic across the board.
But this “September Swoon” isn’t driven by a sudden economic collapse. The American economy is still the strongest in the world; it’s just experiencing a modest slowdown, thanks to stubbornly high interest rates.
In fact, the economy is slowing perfectly for the Fed to finally start lowering rates, which is exactly what they’re signalling, and that’s why this September selloff is different.
This dip isn’t a sign of impending doom; it’s a chance for savvy investors to scoop up “best in breed” stocks at a huge discount. And I’m going to show you how to do it.
Instead of listening to the Wall Street noise machine, we’re going to leverage a simple strategy that has a proven track record of success: following the corporate insiders.
Think about it – who knows more about a company than the people running it? The suits on Wall Street are just guessing, but the insiders have their ear to the ground, and their wallets tell the real story.
When insiders are selling massive amounts of their own stock, it’s a massive red flag, but right now, we’re seeing a massive spike in insider buying – a clear sign that a major market rally is on the horizon.
1. Amphenol (APH)
This dividend stock is a leader in interconnect products used in military, commercial aerospace, and industrial applications. As Ian Wyatt of Wyatt Research reports:
“APH is a great place to earn additional income using covered call strategies. That’s because shares tend to trade in a tight range – making it ideal for generating premium income.”
I agree with Ian’s thesis on APH. We’re looking at a rock-solid blue chip, sporting a 1.5% dividend yield and 8 consecutive years of dividend growth. It has a forward P/E of 18, which is in-line with its historical average, and Wall Street analysts are forecasting 5% annual earnings growth over the next few years. The recent selloff has created an attractive entry point, but savvy investors are already piling in, recognizing the upside potential.
2. Parker-Hannifin (PH)
This “dividend aristocrat” has a long track record of success, boasting an incredible 67 consecutive years of dividend increases. According to Ian Wyatt:
“[Parker-Hannifin](https://www.wyattresearch.com/daily-profit/copy-these-85-winning-trades-in-september/) also tends to trade in a tight trading range – making it an ideal income trade. And our research uncovered an opportunity to earn an extra 48.5% annualized profits.”
Parker Hannifin’s 1.8% dividend yield is on the low side. But I like what I’m see with its 10% projected annual earnings growth. Their recent quarterly earnings report outperformed expectations, a testament to the company’s strength and growth potential going forward.
3. Charles Schwab (SCHW)
This discount brokerage is a market leader and a value investor’s dream. Ian Wyatt also highlighted this stock as a top recommendation in one of his recent watchlist articles:
“[Schwab](https://www.wyattresearch.com/daily-profit/copy-these-85-winning-trades-in-september/) is a leading financial services company and the profits continue to grow. It also tends to trade in a tight range, making it ideal for income trading.”
Schwab has a 1.5% annual dividend yield, but I am excited about the recent spike in institutional buying pressure. Wall Street analysts are forecasting that its EPS will grow by more than 15% in the next year, leading to potentially explosive share price growth.
While the “experts” are panicking, remember that the best investors in the world aren’t losing any sleep. Warren Buffett, for example, held onto 99% of his Bank of America stake, even as he unloaded millions of shares last month. If this dip is good enough for him, it's good enough for us.
But Buffett’s “value” investing strategy isn’t the only way to play the market. If you want to earn those truly outsized returns, the secret is to follow the corporate insiders into stocks before the rally even begins.
This week's selloff is giving you that “once in a decade” opportunity to get in before the buying frenzy even begins.
Remember: Every time the insiders pile into one of these stocks, it's a sign of strength; it's a sign of opportunity; and it's a sign of what's to come.
Tomorrow, we’ll continue our stock market analysis by revealing the #1 trading strategy for navigating volatile markets.
