They said it.
Oh, my goodness.
The Federal Reserve said that word.
The dreaded one.
The one that’s only whispered quietly into the ear of the President – and then the messenger is fired and banished.
It’s a bad word. Naughty.
The “R” word!
The word YOU CAN’T SAY… if you’re an economist influencing the largest economy in the world. It’s the word to which they changed the definition last year…
Just so that they could AVOID saying it.
But they said it yesterday at 2pm ET.
And I’m thanking them. Why? Because this one word reshapes the U.S. economy and gives us – for the first time in years – a special opportunity that might not return in this decade.
2023 Recession Stocks Are In Focus
The Federal Reserve’s economic team relayed the following in the minutes from the central bank’s March 2023 meeting. The “United States will enter a mild recession during the year’s second half.”
Recession!
After 13 years of low-interest rates, cheap money, crazy valuations, tech booms, crypto bonanza, and more irrationality – the economy will contract.
After changing the definition of a recession last year to fit their political will…
The news sent a lot of investors to the exits on Wednesday afternoon.
But me? I just took out a calculator and started doing some math.
You see, while everyone else is running for the hills, I’m rubbing my hands together.
What stocks will I be able to buy in the future that will trade at insane values?
What 2023 recession stocks will give me a once-in-a-decade opportunity to buy cheap, generate incredible income, and set myself up for a potential MASSIVE gain within 18 to 24 months?
Well, that’s where my single favorite value strategy comes into play.
Buying Dirt Cheap 2023 Recession Stocks
The current financial markets are not as bad as in 2008.
And while 2008 was the greatest financial collapse since the Great Depression, it was NOTHING like the previous financial panics and crashes we saw in the 19th century.
The Panic of 1837 was one of the worst financial crises to EVER hit an economy. It shouldn’t surprise you that rampant land speculation as the United States expanded west became a huge source of boom-and-bust cycles.
This event was so bad that banks in New York City ran out of gold and silver. The value of stocks, land, wages, and more absolutely collapsed.
But crisis always creates opportunity.
In fact, one investor named Commodore Vanderbilt figured out that he could buy stocks that were trading for less than the actual value of the company.
All he had to do was wait for the economy to recover, wait for the financial system to get more liquidity into it, or wait until the company went belly up – because the assets owned by the company would just get sold – AND HE’D GET PAID.
This is what created MASSIVE generational wealth for the Vanderbilt family.
And across every financial panic and crash, this simple strategy has been used by some of the smartest, wealthiest investors on the planet to increase their wealth, power, and prestige.
It was employed by JPMorgan after the Panic of 1907.
It was a favorite strategy of hedge fund managers in 2002, 2008, and 2020.
And now it can be your secret weapon.
This isn’t some wild hidden secret only talked about in tennis clubs and golf courses.
This is just basic math.
All I need to do is get out my calculator, determine the value of the assets owned by the company, subtract the debt, and numerate what the value of this stock would be if the company went out of business tomorrow.
But here’s the thing. I don’t actually need to do all the long-form mathematics.
There are basic metrics that can and will tell you if a stock is trading for less than the company’s true value.
As I’ve noted, I can use Tangible Book Value, Enterprise Value (EV) calculations, and liquidation value.
But the best value based number – the one that tells us what we should safely utilize to determine what the market values the stock at – is our Tactical Wealth Score.
If a stock has a Tactical Wealth Score of under 0.5, this could immediately flag a possibility of a 100% gain or more within 18 months.
We use the Tactical Wealth Score to identify opportunities that have strong management teams, very low credit problems, deep value, and even strong income potential.
Companies that are worth less than the sum of their parts are the ideal Recession Stocks, as they have less downside and are poised for slingshot gains when the dust clears and the recession ends.
Over at Tactical Wealth Investor, these are the very stocks we target. If you want access to these stocks, all you have to do is check out this short presentation. Then, you’ll be ready to invest like a Vanderbilt – and start building real wealth.
If you’re already a member of Tactical Wealth Investor, you can expect my portfolio update early next week.
To your wealth,
Garrett Baldwin
Market Momentum is Yellow
Momentum is still mixed in this environment, but the threat of a recession has a lot of institutions heading for the exits after Wednesday’s late-day selloff. Now is the time to start hedging against any surprise downturn in the market and focus on long-term value as opportunities emerge.
*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
