Has Nasdaq Price Pop Signalled The End For Bear Market Bargains?

By: Greg Maxwell
Investing

This is not a trick question although the answer may surprise you.

Would you rather have bought Amazon in 1999 or 2001?

You see, in December 1999 Amazon shares were sitting at (a split adjusted) US$106.70.

And almost two years later in September 2001 were down a staggering 94% to US$5.97.

Mind you, whichever you choose you're still doing pretty well. 

Because Amazon's current price is US$189.08…

But the difference goes to show, sometimes it can really pay to wait for a pullback.

It also pays to remember while Amazon has become a behemoth, the same year it cratered, many other dot com stocks did not come back – Like Pets.com, Flooz.com, and many others.

However, if you can pick the right stocks, the difference made in market pullbacks could potentially be where millionaires are made and lost.

And just like in 2001, we think the recent market uncertainty has led to some great companies being unfairly treated by the broader market sell off.

Just like Amazon, we think some top quality stocks are "on sale".

And what's more, there's also something else we see right now… 

With some green shoots of recovery in the US economy potentially breaking through –  like all good deals, this "sale window" could soon be closing. 

You see, what is good news for US companies and economy… 

Could be bad news for investors looking to pick up some potential bargains before the next bull market run.

After all, the Nasdaq just closed their best six-month performance in 40 years…

Individual tech stocks have been going gangbusters, shooting up over 200% and 56%.

And when we start to see headlines like…

     "Investors are entering August in a bullish mood"

– Yahoo Finance

     "Wayfair's Investor Day Has Analysts Feeling Bullish"

– Barrons

     "Billionaire Ken Fisher Sees a Bullish Tailwind Ahead for Stocks…"

– Yahoo Finance

… It seems some bullish investors are already licking their lips for a potential market surge.

It's still early signs and we're not going to sit here and make predictions on which way the US economy might go. We'll just stick to what we're good at. 

Picking stocks. 

As you may know, at Motley Fool Share Advisor we've been following the US markets and recommending US stocks to Aussie investors for over a decade. 

And through the short term uncertainty, we've been racking up an impressive track record in the process. 

With US recommendations like; 

Netflix back in July 2012, when shares were just US$8.42. And for members who took our advice and purchased would have seen a 45% return every year since. Or an incredible 7,967% total gain. 

And Apple in December 2011, when shares were just US$12.23 — delivering an eye popping 26% a year or total gain of 1,622%.

Don't forget Amazon because in February of 2012, when shares were just US$8.94 — we recommended it. And members who heeded our advice would be producing a 28% per year gain, or 1,981% total gain since.

Of course these are some of our very best US recommendations and I don't mention them to be representative – We've certainly picked stocks that have lost money too. 

However, I say this to show, with our experience and track record in the US markets and with potential signs of recovery shining through, we think time could soon be running out to pick up some top flight US companies at low low valuations. 

A short while back our team compiled a list of four stocks whose prices tanked due to recent market sentiment — and yet, we thought had strong underlying fundamentals to set them up for a lot of future success. In other words, great pullback buys. 

However things are getting critical. Because of those four stock calls, one of them has just popped. Shooting up over 200%.  

Now while we think all four are still screaming buys and the opportunity is still on the table… 

It just means it might not be for much longer. 

Which is why to make the most of what could be a rapidly closing window, now could be the last chance to take full advantage and get access to our "Pullback Stocks 2023: 4 World Class Stocks To Transform Your Wealth" report. Even better, it's available FREE to Share Advisor members.

When you enter your email below you'll get all the details on how you can access this research. 

Don't look back five years from now, thinking about what might have been.

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Returns as of 22 June 2024. Motley Fool contributor Greg Maxwell has no position in any of the stocks mentioned. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, and Netflix. The Motley Fool Australia has recommended Amazon.com, Apple, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. Past performance is not an indicator of future results and all investing involves risk of loss. For more information about The Motley Fool see our Financial Services Guide. All returns cited are hypothetical and based on the percentage change between the stock price at the time of recommendation and the current or sell price (if the position has been closed) at the time of publication. Brokerage, taxes and any other associated costs are not taken into account. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. Any money back guarantee is strictly limited to the subscription price paid for the product.