Last week, Marc Chaikin discussed that many investors have been on the sidelines. Those folks missed the big gains in recent months. And if they're still sitting out, that means they're missing more upside ahead.
Editor's note: As you know, stocks have surged from their April lows...
Last week, Marc Chaikin discussed that many investors have been on the sidelines. Those folks missed the big gains in recent months. And if they're still sitting out, that means they're missing more upside ahead.
Over at our corporate affiliate Stansberry Research, our friend Brett Eversole has a similar message...
Today's essay is adapted from the July 22 edition of Brett's free DailyWealth e-letter. In it, he explains how you shouldn't fall for a common investing trap in the wake of a recent rare signal in stocks...
The Three Most Expensive Words in Investing
By Brett Eversole, editor, Stansberry Research
It doesn't matter if you're a professional money manager or individual investor...
If you want your portfolio to succeed, you've got to think about a lot more than just finding investment ideas.
Sure, the good ideas matter. It's hard to create a masterpiece with only a box of broken crayons. But owning great stocks is only part of the picture.
You've also got to manage your behavior.
You can't always trust your instincts. They're often the enemy of long-term returns.
Right now, you might be falling for the three most expensive words in investing... I missed it.
Stocks have soared in recent months. You might feel like the gains are already over. But as you'll see, that's a mistake...
The recent rally has more room to run. Let me explain...
In his first treatise as CEO of our parent company MarketWise, Dr. David "Doc" Eifrig raises some difficult truths: This country can't keep its promises to anyone – not to public servants and soldiers, not to people in disaster zones, not even to keep airplanes safely flying in the sky. So why would anyone think their pension... 401(k)... health care... or Social Security is safe, either? Here's what you must do today to protect yourself... and how to solve the three biggest pitfalls of retirement.
Today's price movements in gold are identical to setups we've seen before, including the precious metal's historic 2,300% leap in the 1970s after President Richard Nixon took the U.S. off the gold standard. And even though many experts are focused on the $4,000 target price, new evidence suggests gold could soar past $5,000. What's more, there's a unique way for you to cash in on today's frenzy that's directly tied to the price of gold. See this important gold update here.
The "I missed it" feeling starts creeping in anytime a major rally unfolds.
You start thinking about how much money you could have made... if you had bought at the beginning of the rally. And even if you did own that asset from the get-go, you feel like you should have owned more.
So you tell yourself it's too late to buy in now. Prices have already soared. You sit paralyzed, convinced that you missed it.
The situation is all too familiar. But you shouldn't fall for this way of thinking. And the run-up we just experienced proves it...
This Rare Signal Points to More Gains Ahead
You see, stocks recently finished one of their most impressive three-month rallies in history. The S&P 500 Index was up 26% in the three months after its April low. And that pushed the index back to all-time highs. Take a look...
A massive short-term jump like this is a perfect breeding ground for regrets and paralysis. But according to history, you haven't missed it. There are still big gains to come.
We've only seen five other unique instances of a 26%-plus three-month rally since 1950. And in every case, stocks continued to soar. Take a look...
One of the best ways to succeed as an investor is to focus on the trend. Assets that are rising tend to keep rising. This tendency is the antithesis of "I missed it." And history shows it's about to play out once again.
Similar three-month rallies led to 8.1% gains in three months... 11.5% gains in six months... and 23.4% gains over a year. That's massive outperformance versus the typical buy-and-hold strategy. Plus, stocks were higher a year later 100% of the time.
What's more, only one of these five instances happened late in a bull market. That was in January 1999. Stocks peaked a little more than a year later.
But in the other four cases, the rally occurred near the beginning of a major bull market.
This is a powerful setup. It tells us that we haven't missed it. The gains should keep piling up from here... and stocks have the potential to keep soaring for years as the bull market continues.
It's easy to worry about missing your chance after the kind of rally we just saw. But don't fall victim to that mistake. There's still plenty of upside ahead.
Good investing,
Brett Eversole Editor's note: At DailyWealth, Brett and his Stansberry colleagues share insights like this each weekday morning that the markets are open. And just like the Chaikin PowerFeed, this e-letter is completely free to read.
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks have turned somewhat Bullish. Major indexes are all bullish.
* * * *
Sector Tracker
Sector movement over the last 5 days
Utilities
+2.14%
Communication
+1.13%
Consumer Staples
-0.89%
Industrials
-1.27%
Health Care
-1.44%
Information Technology
-1.5%
Financial
-2.08%
Real Estate
-2.27%
Materials
-2.42%
Consumer Discretionary
-2.54%
Energy
-3.87%
* * * *
Industry Focus
Semiconductor Services
19
20
2
Over the past 6 months, the Semiconductor subsector (XSD) has outperformed the S&P 500 by +0.91%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #3 of 21 subsectors and has moved up 4 slots over the past week.
Top Stocks
CRDO
Credo Technology Gro
NVDA
NVIDIA Corporation
CRUS
Cirrus Logic, Inc.
* * * *
Top Movers
Gainers
AXON
+16.41%
PLTR
+7.85%
LDOS
+7.45%
BR
+6.79%
ADM
+6.0%
Losers
IT
-27.55%
VRTX
-20.6%
TDG
-11.94%
ZBRA
-11.35%
FIS
-8.54%
* * * *
Earnings Report
Earnings Surprises
PFE Pfizer Inc.
Q2
$0.78
Beat by $0.21
FOXA Fox Corporation
Q4
$1.27
Beat by $0.26
CMI Cummins Inc.
Q2
$6.43
Beat by $1.22
MPC Marathon Petroleum Corporation
Q2
$3.96
Beat by $0.73
LDOS Leidos Holdings, Inc.
Q2
$3.21
Beat by $0.56
* * * *
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