• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

This Is Not a 'Once in a Lifetime' Opportunity, There Will Be Plenty

The big gains will come in a bull market, not when stocks are struggling to find support in a bear market.
By JAMES "REV SHARK" DEPORRE
Mar 20, 2020 | 11:49 AM EDT
Stocks quotes in this article: DIS

Well known trader Mark Minervini posted a tweet this morning that distills much of what I have been trying to communicate about the market recently:

Everyone is trying to nail the bottom of this "once is a lifetime" buying opportunity. First of all, it's not a once in a lifetime opportunity. Second, picking the bottom isn't the opportunity. The bull market that follows is the opportunity. And there's plenty of time for that.

— Mark Minervini (@markminervini) March 19, 2020

In recent weeks there has been a flood of "experts" urging that we rush to buy the great opportunities that are being created during the coronavirus crisis. Their argument is that the crisis will pass and these stocks will rally back to their prior levels.

While that logic is most likely correct, it is the execution of the strategy that is the issue. Buying on the basis that stocks will eventually recover is suboptimal because the entry points are likely to be poor and the risk is higher without a thoughtful strategy.

As Minervini notes, this is not a "once in a lifetime" opportunity. The opportunities to buy will be numerous in the days and months ahead. The big gains will come in a bull market, not when stocks are struggling to find support in a bear market. This feeling that we will miss out if we don't rush to put our precious capital at work is understandable but it is not rational.

I've been using Disney (DIS) as an example of something that I would like to build as a long-term holding. I made a couple of small buys so far but at this point, I'm taking the opportunity to sell some into the bounce that started Thursday and continued into Friday morning.

Why would someone sell a "long-term" holding like Disney? Because I'm still building the position and trying to obtain the best cost basis with the lowest risk.

I believe it is highly unlikely that Disney is going to run straight back up from here. In fact I believe the greater likelihood is that it will take quite a while before it can completely discount all the uncertainty it must deal with.

If I'm wrong and it continues to run higher, I have no concern about paying up at a later date when a true bull market develops. If I'm right I can work on getting a better cost basis and profit even more.

It is easy to feel like you are missing out when the market has a strong countertrend bounce but remind yourself that this is a bear market and that the big money is made in bull markets. The best risk-adjusted returns are made in uptrends, not downtrends.

(Disney is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells DIS? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication Rev Shark was long DIS.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long DIS.

TAGS: Investing | Markets | Stocks | Trading | Coronavirus

More from Stocks

The Markets Also Rise Quickly

James "Rev Shark" DePorre
Mar 1, 2021 4:22 PM EST

Fear of missing out permeated the day as the indexes bounced back.

BlackBerry's Calling

Mark Sebastian
Mar 1, 2021 3:27 PM EST

Here's a play in the stock and why I think it will dial back down.

NantKwest's Charts Are Extended When Compared to the Popular Moving Averages

Bruce Kamich
Mar 1, 2021 3:15 PM EST

Let's stand aside for now and see how things unfold.

The Battle Over Cannabis Operator Verano Holdings' Stock

Debra Borchardt
Mar 1, 2021 2:00 PM EST

Sol Global and MMCap are fighting in court over who owns or owes what of the company's shares.

Is Chevron Finally Ready to Make an Upside Breakout?

Bruce Kamich
Mar 1, 2021 1:44 PM EST

Let's check out some charts on the energy giant.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 06:05 PM EST PAUL PRICE

    Michael's (MIK) up on take-over rumors

    The NYT says talks are underway regarding a buyo...
  • 08:09 AM EST GARY BERMAN

    Monday Morning Fibocall for 3/1/2021

    Always a good idea to know where our bounce zones ...
  • 11:51 AM EST REAL MONEY

    Watch Bob Lang and Doug Kass Discuss Short-Selling!

    Bob Lang and Doug Kass with an engaging and educat...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login