I can’t tell you when the market will bottom but I can tell you there are some of the most attractive investment opportunities I’ve seen since March 2020.  Many of the highest growth glamour stocks are down 70-80%.  They have dropped below where they were either before the Pandemic, or in some circumstances, below their March 2020 lows. This is fertile ground for value investors and I think we have the potential to make a lot of money coming out of this as long as we don’t see a World War, or a major escalation in Taiwan, which are the two primary risk factors I’d flag. Below I’m going to share two of my favorite stocks with you.  One research article I wrote and other was by one of the better analysts on Seeking Alpha.  The two stocks are LendingClub and Ally Financial.

Tim’s Ally Financial Article

On the LendingClub article I wanted to highlight a recent trade.  With the stock at $13.15, we were able to sell a $7 January 2023 put for $.60.  This is a 9.3% target profit on the maximum risk in 240 days or 14.3% annualized.  Your breakeven is $6.40 so the stock could drop 51% before you would take a loss.  We have puts that are higher too and are more lucrative, but I just wanted to highlight how conservative we can be and still generate a mid-teens return in this environment.  If you want to make money, now is a fabulous time.  Don’t let yourself get scared out of stocks when they are finally cheap!  The other way to think about this is that these are the types of options we have in our portfolios.  All we need to do is let them expire to realize the profits, which is basically the realization of our short option values.  Option prices are high because volatility is extreme and there is still a decent amount of time left on the options.  Here is the LendingClub Article.