Stocks Up On Friday, Sharply Higher For The Week  Image: Shutterstock Stocks closed higher on Friday, led by the Nasdaq with 1.88%, followed by the S&P with 0.92%. For the week, all of the indexes were sharply higher with the Dow up 4.15%, the S&P up 5.90%, the Nasdaq up 8.10%, and the small-cap Russell 2000 up 4.60%. Ever since the markets made their key upside reversal on October 13, stocks have been on a tear. Since then, GDP came in stronger than expected, the Fed raised rates, but hinted at slowing their rate hike pace, we got a better than expected jobs report, we're in the midst of a better than expected earnings season, we went thru the midterm elections, and got a CPI report that showed inflation has finally begun to moderate. And stocks powered higher thru all of it. But it looks like this could be just the beginning of the rally. The 4-year Presidential Cycle shows that Q4 of year 2 (midterm year), is the second strongest quarter of all 16 quarters, with Q1 of year 3, being the strongest quarter. Moreover, year 3 (that's 2023), of the 4-year Presidential Cycle is the best year of all 4 years. So we are literally at the beginning of one of the best times for stocks. In fact, since 1950, stocks have always gone up in the year after midterms. And the average 12-month forward returns are 18.6%. So there's plenty of reason to believe there's a lot more upside to go. But there's no denying it's been a tough year up until recently. Although, even while stocks were falling earlier this year, the energy sector was soaring. Energy was the top performing sector. And one of the most exciting spaces within that sector, with huge upside potential, is alternative energy. Companies and countries are investing billions of dollars (even trillions), in the rush for new and reliable clean, green and renewable energy of all types. And it's promising to be one of the most profitable investment spaces for years to come. Because the world isn't trying to figure out how to get off of alternative energy like they are fossil fuels, they're trying to figure out how it can replace fossil fuels and power the future. The opportunities could be as spectacular as the burgeoning technology sector was many years ago. And that's why we've created our new trading service, Zacks Alternative Energy Innovators. It just launched. And its first picks are set to be released this morning (Monday, 11/14). Click here to learn all about our exciting new service, Zacks Alternative Energy Innovators. Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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