It's not Nvidia, Meta Platforms, Alphabet, or Amazon. But thanks to a recent major deal, an under-the-radar stock could become the No. 1 winner of the 2023 AI boom. "This company just teamed up with one of the biggest power players in the AI industry... yet you can still buy it for just one-twelfth the price of Nvidia – the time to buy is NOW," says Marc Chaikin.
At TradeSmith we don't seek to scare you… but to prepare you. If you're worried about your stock portfolio heading into this potential shutdown, I've got you covered.
Instead of opining on the latest media buzzwords, let's see the PROOF.
Data Tells the Story
Since 1978, we've had 16 government shutdowns that've lasted at least a day. The average length of time a shutdown has lasted in those instances is 12 days.
So, prepare yourself… we could be shutting down for a week or longer.
You may be concerned about your stock positions. BUT history says you should take any shutdown in stride.
Over the past 40+ years, beginning on the first day of a shutdown, the S&P 500 has gained 4.2% in the 3 following months.
6-months later, stocks lift 9.7%.
12-months later, stocks fly 16%!
If you're feeling heartburn over the pending shutdown, let it go. History paints prior episodes with a bright green brush.
The September doldrums have been commonplace in the past three decades. The media knows this setup all too well. That's why they feed the bearish narratives in September.
Since 1990, September falls an average of .8%, spilling over into Q4, which then sees stocks ramp up from October through December.
Check it out:
This should bring a smile to your face.
HOWEVER, the fun doesn't stop there. Pre-election years like 2023 are a powerful subset of this seasonal shift.
Since 1990, pre-election years have kicked off a monster rally beginning in the fourth quarter.
October dazzles with a 4.4% average gain for the S&P 500. December caps off the quarter with a 3.1% rally:
As I prepared you then for September shenanigans… I'm preparing you now for better days ahead into yearend.
The government may indeed shut down… and history says that's OK. Just don't shut down your portfolio.
The evidential proof shows you'll regret it.
If you're like me and are on the lookout for stocks primed to pop in Q4, check out TradeSmith'sQuantum Edge Pro (a friendly reminder that paid-up subscribers must be logged in to access recent trades).
Analyst Jason Bodner, a seasoned Wall Street vet, has been preparing readers for a red September for many weeks. He's prepping his Q4 buy list now.
TradeSmith is not registered as an investment adviser and operates under the publishers' exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith's content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results.
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