Stocks Poised For Record Gains On Record Growth And Stimulus

With the economy set for historic growth this year, and stocks poised to soar, this is one of those times in the market that people will look back on either with great excitement for taking full advantage of it, or with utter regret for missing out on an opportunity of a lifetime.



Stocks got off to a strong start this year, then pulled back a bit in mid-February thru early March.



Panic set in for some investors as they braced for more downside. Some sold. Others shorted. And some refused to buy this market for fear of it going lower.



But then it didn’t.



And since then, all of the major indexes have made new all-time highs, and look ready to do it again.



If you missed out on this latest rally due to disbelief, or fear, it’s not too late.



Because it looks like there’s a lot more upside to go.



Fear Not



There was nothing ominous in the pullback we saw earlier in the year. It was just your normal, ordinary pullback.



Nor was there anything ominous in the modest pullback we saw just last week. Not every week can be an up week.



These are just normal ebbs and flows.



In fact, stocks usually pull back about -5% roughly 3-4 times per year. (A pullback is defined as a decline between -5% and -9.99%.)



And stocks usually correct -10% on average of about once a year. (A decline of -10% to -19.99% is called a correction.)



Every bull market has them.



These are the pauses that refresh before the next leg up.



While they’re never fun when they’re happening, if you know these are commonplace moves, you can instead look at them as opportunities to buy rather than places to sell.



New Highs Beget Higher Highs 



So why have so many people been so afraid of a pullback?



Is it because the market has performed so spectacularly over the past year?



More than likely, that’s the case.



For some reason, people seem reluctant to buy stocks after making new highs. I suppose they may feel like they missed the move, or that now stocks have more room to fall.



But statistically, this is just not true.



Studies have shown that stocks making new highs have a tendency of making even higher highs.



In fact, using S&P price data going all the way back to the 1950’s, it shows that stocks typically go up in the subsequent six months following new all-time highs.



This means that stocks making new highs aren’t at any greater risk of going down. Quite the contrary, there’s a higher probability of stocks going up even further! 



More . . .



——————————————————————————————————



Saturday Deadline: Claim your Free Copy of Finding #1 Stocks



One single idea changed Kevin Matras’ life as an investor, enabling him to tap into the greatest force driving stock prices. In Finding #1 Stocks, Kevin reveals his top stock-picking secrets and strategies based on this powerful idea. Now you can claim a free copy of the 300-page hardcover book.



Over the past five years (2016 through 2020), while the market climbed an impressive +103.9%, these strategies actually produced gains up to +130.5%, +381.1%, and even +580.6%



You can take full advantage of them without attending a single class or seminar, in a lot less time than you think. Opportunity ends Saturday, September 18



Get your free book now >>



——————————————————————————————————



Climbing The Wall Of Worry



Inflation is the latest worry to grip the market.



And some have begun to worry that if inflation gets too hot, the Fed might have to raise interest rates sooner rather than later.



But let’s remember that some inflation is good. Not too much, but some. And one person’s cost increase is another person’s profit.



It’s also important to know that stocks typically perform well in inflationary environments.



That’s why the Fed has a target of 2%, and not 0%. In fact, over the last several years, the Fed is on record as being more concerned over low inflation than high inflation.



And that’s why they are now willing to let it run hotter than normal, for longer than normal, before doing anything on rates. (Although, they will begin scaling back their bond buying, and the market cheered the news when announced.)



It’s true that inflation is too hot right now. And that’s in large part due to supply disruptions, worker shortages, and base effects (comparing current prices to last year’s pandemic-subdued numbers).



But these are considered transitory. And the aforementioned problems should start seeing some relief, especially as the enhanced unemployment benefits, which just came to an end the other week, will force many workers to rejoin the workforce, thus reducing the supply shortages and worker shortages, while simultaneously helping to ease inflation.



In fact, the Fed has reduced inflation expectations for 2022 and 2023, putting it at 2.1%.



Let’s also remember that inflation, in and of itself, doesn’t tank economies. High interest rates do.



But that’s literally years and years down the road. 



Record Low Interest Rates Are Here To Stay For Some Time 



As you know, the Fed has kept interest rates at record lows.



And they have repeatedly pledged to do whatever it takes to support the economy, and get back to full employment.



In doing so, they have constantly reiterated that they plan to keep interest rates near zero for the foreseeable future – that means through all of 2022 and a portion of 2023.



Even when they do begin to raise rates, roughly two years from now, they are essentially starting from zero. And it should be noted that over the last 50 years, there’s never been a recession (aside from last year’s pandemic-induced plunge), when the Fed Funds rate was under 4%.



And at quarter point moves (even half point moves), it would take years to get to that level.



Bullish Economic Growth



In the meantime, the market has been focusing on the historic economic growth.



With full-year GDP expected to come in at the fastest pace in 37 years, it’s easy to see why stocks have been going up.



Then add in the unprecedented fiscal stimulus that has already been approved by Congress, not to mention the infrastructure package that is likely on the way in the near offing, let alone the domestic spending bill that’s currently being debated (whatever the final price tag ends up being), and the economy looks set to soar.



Add all that up, coupled with the reopening of the economy (delta variant notwithstanding), and we’re about to see a record amount of pent-up economic demand meet a record amount of stimulus money.



And that’s a recipe for explosive economic growth and stock market gains.



That’s also why people are expecting this to be the beginning of a multiyear boom.



History In The Making



What we’re seeing right now is history in the making.



And historic times typically lead to historic price gains.



So you need to make sure you’re taking full advantage of it.



And not squandering this opportunity with preventable mistakes.



If you ever wished you could have traded historic times in the market differently, now is your chance.



Because the next historic run-up could be upon us.



Do What Works 



So how do you fully take advantage of this historic opportunity?



By implementing tried and true methods that work to find the best stocks.



For example, did you know that stocks with a Zacks Rank #1 Strong Buy have beaten the market in 26 of the last 32 years with an average annual return of 24.7% per year? That’s nearly 2.5 x the S&P. But when doing this year after year, that can add up to a lot more than just two and a half times the returns.



And did you also know that stocks in the top 50% of Zacks Ranked Industries outperform those in the bottom 50% by a factor of 2 to 1? There’s a reason why they say that half of a stock’s price movement can be attributed to the group that it’s in. Because it’s true!



Those two things will give any investor a huge probability of success and put you well on your way to beating the market.



But you’re not there yet, as those two items alone will only narrow down a field of 10,000 stocks to the top 100 or so. Way too many to trade at once.



So the next step is to get that list down to the best 5-10 stocks that you can buy.



Proven Profitable Strategies 



Picking the best stocks is a lot easier when there’s a proven, profitable method to do it.



And by concentrating on what has proven to work in the past, you’ll have a better idea as to what your probability of success will be now and in the future.



For example, if your strategy did nothing but lose money year after year, trade after trade, over and over again, there’s no way you’d want to use that strategy to pick stocks with. Why? Because it’s proven to pick bad stocks.



On the other hand, if your strategy did great year after year, trade after trade, over and over again, you’d of course want to use that strategy to pick stocks with. Why? Because it’s proven to pick winning stocks.



Of course, this won’t preclude you from ever having another losing trade. But if your stock picking strategy picks winners more often than losers, you can feel confident that your next trade will have a high probability of success.



Here are a few of my favorite strategies that have regularly crushed the market year after year.



New Highs: As mentioned earlier, studies have shown that stocks making new highs have a tendency of making even higher highs. And this strategy proves it. The alignment of positive price action and strong fundamentals creates all the necessary conditions to see these stocks soar to even greater heights. Over the last 21 years (2000 thru 2020), using a 1-week rebalance, the average annual return has been 45.5% vs. the S&P’s 6.6%, which is nearly 7 x the market.



Small-Cap Growth: Small-caps have historically outperformed the market time and time again. Often these are newer companies in the early part of their growth cycle, which is when they grow the fastest. This strategy combines the aggressive growth of small-caps with our special blend of growth and valuation metrics for explosive returns. Over the last 21 years (2000 thru 2020), using a 1-week rebalance, the average annual return has been 51.2%, beating the market by 7.6 x the returns.



Filtered Zacks Rank 5: This strategy leverages the Zacks Rank #1 Strong Buys, and adds two time-tested filters to narrow the list of stocks down to five high probability picks each week. Over the last 21 years (2000 thru 2020), using a 1-week rebalance, the average annual return has been 51.3%, which is 7.7 x the market.



The best part about these strategies (aside from the returns) is that all of the testing and hard work has already been done. There’s no guesswork involved. Just point and click and start getting into better stocks on your very next trade. 



Where To Start



Now that the economic recovery is in full swing, there’s a simple way to add a big performance advantage for your stock-picking success. It’s called the Zacks Method for Trading: Home Study Course.



With this fun, interactive online program, you can master the Zacks Rank in your own home and at your own pace. You don’t have to attend a single class or seminar.



Zacks Method for Trading covers the investment ideas I just shared and guides you to better trading step by step, plus so much more.



You’ll quickly see how to get the most out of the proven system that has more than doubled the market for over three decades. Discover what kind of trader you are, how to find stocks with the highest probability of success, and how to trade them so you can consistently beat the market no matter where stock prices are headed.



You’ll get the formulas behind our top-performing strategies suited for a variety of different trading styles.



The best of these strategies produced gains up to +130.5%, +381.1% and even +580.6% over the past five years (2016 through 2020).¹



The course will also help you create and test your own stock-picking strategies.



Today is the perfect time to get in. I’m giving participants free hardbound copies of my book, Finding #1 Stocks, a $49.95 value. Its 300 pages unfold virtually every trading secret I’ve learned over the last 25 years to beat the market.



Please note: Copies of the book are limited and your opportunity to get one free ends Saturday, September 18, unless we run out of books first. If you’re interested, I encourage you to check this out now.



Find out more about Zacks Method for Trading: Home Study Course >>



Thanks and good trading,



Kevin



Zacks Executive VP Kevin Matras is responsible for all of our trading and investing services. He developed many of our most powerful market-beating strategies and directs the Zacks Method for Trading: Home Study Course.



¹ The results listed above are not (or may not be) representative of the performance of all strategies developed by Zacks Investment Research.







 

Click to get this free report, Zacks Investment Research

– Zacks






Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research

Internet Explorer Channel Network
News Related

OTHER NEWS

Sigma Labs, Inc. (SGLB) Reports Q3 Loss, Tops Revenue Estimates

Sigma Labs, Inc. (SGLB) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to loss of $0.42 ... Read more »

Shell Oil (RDS.A) Stock Sinks As Market Gains: What You Should Know

Shell Oil (RDS.A) closed at $48.85 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500’s daily gain of 0.3%. – ... Read more »

SVB Financial (SIVB) Q3 Earnings and Revenues Beat Estimates

SVB Financial (SIVB) came out with quarterly earnings of $7.26 per share, beating the Zacks Consensus Estimate of $5.06 per share. This compares to earnings of $8.47 per share a ... Read more »

Twilio (TWLO) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Twilio (TWLO) closed at $369.23, marking a +0.72% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.3%. – Zacks ... Read more »

Boston Beer (SAM) Q3 Earnings Lag Estimates

Boston Beer (SAM) came out with quarterly earnings of $2.97 per share, missing the Zacks Consensus Estimate of $4.04 per share. This compares to earnings of $6.10 per share a ... Read more »

Texas Instruments (TXN) Outpaces Stock Market Gains: What You Should Know

Texas Instruments (TXN) closed the most recent trading day at $201.29, moving +0.96% from the previous trading session. This change outpaced the S&P 500’s 0.3% gain on the day. – ... Read more »

Alpine Income (PINE) Q3 FFO and Revenues Surpass Estimates

Alpine Income (PINE) came out with quarterly funds from operations (FFO) of $0.37 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to FFO of $0.35 ... Read more »

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

How many entrepreneurs are as confident now as they were before the Covid-19 pandemic began? Yes, we know the majority of the S&P 500 are companies that began in down ... Read more »

Capstar Financial (CSTR) Surpasses Q3 Earnings and Revenue Estimates

Capstar Financial (CSTR) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.43 per share a ... Read more »

This Dow laggard's chart is so bad, it's good, trader says

The Dow Jones Industrial Average may have hit a record this week, but some of its components still have room to catch up. One-third of the Dow is still more ... Read more »

Stock futures dip slightly after S&P 500 hits new record close

A specialist trader works inside a booth on the floor of the New York Stock Exchange (NYSE) in New York City, October 6, 2021.Brendan McDermid | Reuters Stock futures dipped ... Read more »

Financial watchdog to investigate British Steel Pension Scheme scandal

© Getty Tata Steel Nearly 8,000 people transferred out of the BSPS ahead of a restructuring of the scheme in 2018, after receiving advice from financial advisers. Together, they accounted ... Read more »

Martin Lewis explains three things homeowners must do now as mortgage rates could soar

Martin Lewis has explained three things homeowners must do now over fears mortgage rates could be about to soar. The MoneySavingExpert used his ITV show this evening to explain how ... Read more »

Stocks making the biggest moves after hours: Snap, Intel, Chipotle and more

People walk past Snap Inc. Snapchat signage displayed in downtown Los Angeles, California on October 2, 2021.Patrick T. Fallon | AFP | Getty Images Check out the companies making headlines ... Read more »

Bigger state and local tax deductions still possible as Democrats grapple over spending plan

House Speaker Nancy Pelosi, D-Calif., speaks outside of the U.S. Capitol on Oct. 20, 2021.Mandel Ngan | AFP | Getty Images As Democrats wrestle over their spending package, key lawmakers ... Read more »

3 Defense Equipment Stocks to Buy Amid Supply Chain Disruption

Frequent mergers and acquisitions tend to boost revenue generation prospects along with production efficiency of stocks in the Aerospace-Defense Equipment industry. Moreover, the recent recovery observed in the global commercial ... Read more »

Fed to ban policymakers from owning individual stocks, restrict trading following controversy

The Marriner S. Eccles Federal Reserve building in Washington, D.C., on Friday, Sept. 17, 2021.Stefani Reynolds | Bloomberg | Getty Images Responding to a growing controversy over investing practices, the ... Read more »

Expanded child tax credit may last for 1 more year instead of 5 as Democrats cut economic plan

Getty Images The enhanced child tax credit has sent monthly checks to millions of American families since July. Now, it's one of the programs on the chopping block as Democrats ... Read more »

What to expect as Education Department gets ready to resume student loan payments

The U.S. Department of Education in Washington, D.C.Caroline Brehman | CQ-Roll Call, Inc. | Getty Images In March 2020, the U.S. Department of Education offered the millions of Americans with ... Read more »

The worst-off of Istanbul: Pakistani and Afghan waste paper collectors

This article first appeared on our partner site, Independent Turkish © Independent Turkey The jobs of the waste paper collectors are under threat – Independent Turkey Waste paper collectors across ... Read more »

Goldman Sachs wants to build an investor-friendly SPAC business following market bust

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, Sept. 20, 2021.Michael Nagle | Bloomberg | Getty Images Goldman Sachs just closed its ... Read more »

1 in 5 gig drivers got unemployment benefits at pandemic peak

hxyume | E+ | Getty Images About 1 out of every 5 drivers in the gig economy was collecting unemployment benefits at the pandemic's peak, according to a new analysis ... Read more »

Low-income households in Scotland falling behind on bill payments, report reveals

Almost a third of low-income households in Scotland are behind on bill payments, a report from the Joseph Rowntree Foundation (JRF) has warned. © People in low income households are ... Read more »

Two under-the-radar stocks could help hedge against inflation, trader says

Rising concerns around inflation have one trader looking past the market's most popular names for protection. “In these markets, we want stocks that are able to maintain their margins and ... Read more »

Fraudsters trying to convince people to ignore ‘no match' bank transfer warnings

Fraudsters are trying to convince people to ignore “no match” warnings when the bank account they are transferring money into does not match the name of the person they think ... Read more »

Legal costs for families of R116 victims to be resolved ‘very quickly' – Ryan

© Julien Behal Photography Transport Minister Eamon Ryan said the issue of legal costs imposed on the families of the victims of the Irish Coast Guard helicopter R116 crash ‘will ... Read more »

London borough with highest-risk mortgages in all of Britain revealed

Home buyers in Wandsworth take out more mortgages classified as “highrisk” than anywhere else in the country, figures reveal on Thursday. © PA PA-61549958.jpg The south-west London neighbourhood, seen as ... Read more »

SL Green (SLG) Q3 FFO Surpasses, Revenues Miss Estimates

SL Green Realty Corp. SLG delivered third-quarter 2021 funds from operations (FFO) per share of $1.78, beating the Zacks Consensus Estimate of $1.58. Further, the reported figure compares favorably with ... Read more »

Bookingjini Raises $1.2 Mn From Mumbai Angels Network

Mumbai Angels Network, a startup investment platform for early-stage venture investments, announced to have invested $1.2 million out of a total investment of $3.3 million in Bookingjini, a hospitality SaaS ... Read more »

Crown Castle (CCI) Surpasses Q3 FFO and Revenue Estimates

Crown Castle International Corp.’s CCI third-quarter 2021 adjusted funds from operations (AFFO) per share of $1.77 surpassed the Zacks Consensus Estimate of $1.72. Moreover, the figure came in 13% higher ... Read more »

Having More than Once Source of Income Can Make You Rich. Here's How to Make it Happen

Did you know that really rich people rely on several sources of income — not just one?  Depositphotos.com contributor/Depositphotos.com – MarketBeat The reality is that a total of 54% of ... Read more »

Old Second Bancorp (OSBC) Q3 Earnings and Revenues Surpass Estimates

Old Second Bancorp (OSBC) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.34 per share ... Read more »

Edtech Startup Questt Raises $6.75 Mn In Series A Fund

Questt, an edtech startup, focused on improving learning outcomes by enabling predictive and adaptive learning, on Thursday announced that it has raised $6.75 million in Series A funds. The round ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic