Zacks - Logo

Open Letter to Those Who Expect to "Ride Out" the Next Bear Market

Zacks Strategists warn of an urgent threat to your stock portfolio. Only by acting in time can you change the likelihood of crushing losses to the prospect of substantial profits.

Fellow Investor,

It's never a bad thing to get ready:

Don't stand pat while the next bear market decimates your nest egg.

And make no mistake, if it hasn't started already, that bear is surely on its way. The bull market has been in place since 2009. It's now the second oldest in U.S. history.

Past experience teaches us a hard lesson. When the bear strikes with full force, most portfolios will be utterly mauled.

Remember the last recession?

S&P Bear Market

For most investors it felt like a punch in the gut. Fortunes were lost. Dreams were broken.

Americans who "rode out" their stocks lost $11.2 trillion dollars. In less than 18 months, the S&P 500 plummeted more than 56%.

But here's the amazing thing. During that same time, a few investors achieved something different. They not only survived that extended crash...

They Made a LOT of Money from It!

In fact, the more the overall market suffered, the more they profited.

How did they do it?

Simple. They shorted stocks, which is flat-out the best way to profit while the market cascades downward. They raked in money while most investors watched their savings flutter away.

Here's the good news. Now you too have the chance to make a killing - during bears as well as bulls!

Introducing the Most Powerful Anti-Bear Weapon Ever Developed at Zacks.

We marshalled all of Zacks' research capabilities to build and test a strategy for detecting stocks that are most likely to fall far more than the average.

Working with over 650 stock characteristics, we refined, tested and retested the strategy over and over again. In the end, 8 traits were isolated to distill 10 stocks each week that offer the greatest chance of dropping in price.

Wait, before we go further ...

Many investors flinch at the notion of shorting stocks. They don't know which to pick and how to make the trades.

So let me assure you. One of the best things about our new Zacks Short List service is that it's designed to make things easy. It alerts you which stocks to short and when. Plus, you get a Bonus Guide that walks you through the process.

Jaw-Dropping Test Results

Best of all, as shown by a 10-year study, this strategy can really pay off...

Shortlist vs S&P

The official Bear market July, 2008 through Q1 2009, dropped -33.8%.

But if you had shorted stocks from the Zacks Short List, you'd have GAINED +69.3%.

What can this mean to your portfolio? Let's say you invested $100,000 into Short List stocks rather than the overall market. Independent of fees, instead of losing $33,800, you would have gained a cool $69,300!

Shortlist vs S&P

What's more, when we look at the previous bear market which stretched from April, 2000 through October, 2002, results were even more astonishing.

Stocks dropped -39.5%, and yet tests show that the Short List would have gained +159.5%.

It's also worth looking at 2015. While not a bear market, the S&P 500 thrashed with volatility, struggling to reach +1.4%. But Short List stocks knocked that number out of the park with a gain of +13.7%.

This is the kind of performance that is sorely needed, especially during troubled market conditions. Here are a few examples that show what Zacks' computer-driven strategy would have generated during the last recession:1

  • Caterpillar shorted at 33.28, dips to 26.66 in 2 weeks for a +19.9% gain.
  • Citigroup shorted at 148.8, dips to 121.4 in 5 weeks for a +74.7% gain.
  • Costco shorted at 62.60, dips to 50.93 in 3 weeks for a +18.6% gain.
  • Eaton Vance shorted at 35.56, dips to 20.67 in 5 weeks for a +41.9% gain.
  • Royal Gold shorted at 37.32, dips to 29.0 in 1 weeks for a +22.3% gain.
  • Verisign shorted at 38.24, dips to 30.95 in 6 weeks for a +19.1% gain.

More recently, in volatile 2016, the strategy keeps winning:

  • Alexion Pharma shorted at 190.75, dips to 145.93 in 2 weeks for a +23.5% gain.
  • Liberty Global shorted at 42.36, dips to 33.16 in 2 weeks for a +21.7% gain.
  • Tesla shorted at 211.00, dips to 162.60 in 4 weeks for a +22.9% gain.
  • TripAdvisor shorted at 76.18 dips to 58.37 in 4 weeks for a +23.4% gain.
  • Vertex Pharma shorted at 125.83, dips to 94.71 in 3 weeks for a +24.7% gain.
  • Yahoo shorted at 33.26, dips to 29.14 in 2 weeks for a +12.4% gain.

Short List Secrets

We don't want to make our exact formula for this success public. It's important to limit the number of investors who make the most money on these stocks as they move downward.

But I will share this telling fact: The strategy doesn't simply identify companies that are struggling.

Everyone can find bad apples in the barrel.

Instead it turns up stocks that are likely to do WORSE in the near future. They have excessive valuations and are overleveraged. Also, estimates of their earnings are being revised downward as evidenced by their weak Zacks Ranks.

No one else has this mathematical formula.

And every Tuesday, you can automatically be alerted to 10 companies that are poised to drop in price. You'll be shown exactly what to do and how to do it.

What's the Cost?

Short List is an exclusive service. And its recommendations are shared with a very limited group of investors. These investors typically pay $995 a year for private buy, hold and sell recommendations, e-alerts, and daily commentary. But we are offering Short List in a way that allows you to sample it, and compare it with all of our other services and strategies.

Starting today you can enjoy access for a full month, PLUS you'll receive every other service that Zacks offers for a total cost of only $1. Get In Now »

Just think what you get through this unique Zacks Ultimate arrangement:

  • All Zacks Buys and Sells (including the Short List.)
  • One Month.
  • One Dollar.
  • Not One Cent of Further Obligation.

What's the catch? There really isn't one. We offer this arrangement to you because Zacks Ultimate serves as a showroom where you can check out any or all of our high-performance portfolios. Then you may join the ones that suit you best. Or join none of them. The choice is up to you. Take advantage now »

▸ More information about Zacks Ultimate.

Let me make a suggestion: Go ahead and explore Short List Trader plus our other active trading and long-term investing portfolios packed inside Zacks Ultimate. Below you will see a list of all the services available to you for the next 30 days.

You might sample our earnings surprise stocks and insider trades (the legal kind). Or check out our value picks and stocks under $10. You can even explore the giant long-term upside potential of the Home Run Investor. No matter what kind of investor you are, there are timely buy and sell recommendations to help you make more money in the market.

Too much information? Not at all. During the next 30 days you can focus on Short List and browse the others, trying whatever captures your interest.

And then, after your $1 for 1 month trial, you have three simple choices:

  • 1. Walk out of the showroom anytime you please and not pay one cent more.
  • 2. Continue your see-it-all Zacks Ultimate subscription for only $299 a month.
  • 3. Join just one or more of the individual portfolios.

Once again, the choice is entirely up to you.

Backed by 2 Airtight Guarantees

Satisfaction Guarantee Shield

Don't worry, you are covered by a Satisfaction Guarantee. You may cancel up to 90 days after your trial is over. And if you feel we have not exceeded your expectations, then we will refund every last cent - including the $1 you paid for the trial. No problem.

But that isn't the half of it.

Perfomance Guarantee Shield

You're also backed by a full-year, money-back Performance Guarantee. Details. That means if we don't help you beat the market, we don't deserve your money.

No one else offers a combination of money-back assurances like these. That's because no one else has a proven system like the Zacks Rank that beats the market so consistently, year after year.

Be First to See New Short List Stocks »

Don't wait another day to prepare for a bear market. And please don't try to ride out your losses. Instead, take advantage of this opportunity to exploit a new and yet test-proven strategy for making money - not in spite of but because of market downturns.

It's easier than you think and potentially more lucrative than you may have dreamed.

Get started with the Short List online, or call toll-free at 1.888.775.8348, M-F, 10 am to 6 pm. ET. Outside the U.S., phone 1.312.265.9309.

This could be the best $1 purchase you will ever make for your family's future.

Simpler still, click here for access to the stocks.