Smart investors don’t just think of the year ahead…they prepare for it.
The new year is coming up fast and the signs are looking positive as you will learn in my latest market briefing and forecast.
But to Make 2020 Your Record-Breaking Year (as we’ve discussed lately), you’ll actually want to be positioned well before the calendar changes!
You’ve got a few days for trading volumes to pick back up – while families get together for the U.S. Thanksgiving holiday – but things could take off rapidly after that. I’d say you’ll want to make your move no later than December 1st.
There are a few specific reasons why being in position by that date can be critical for your returns, so let’s take a look at them now.
First of all, you’ve got to consider seasonality. By then, we’ll start hearing results from retailers’ “Black Friday” sales, then “Cyber Monday” shortly thereafter. And, given that we’re in such a consumer-driven economy, I’m very interested to see how the holiday shopping season shapes up.
I expect strong results this holiday – but, either way, you’ve also got year-end “window dressing” on Wall Street. Only a few weeks remain until money managers will have to report their 2019 results. Trust me, they’ll want to do anything they can to boost those numbers. That means getting rid of “dead weight” in their portfolio…and pivoting to the market’s most powerful stocks.
This is also the end of a quarter, when we see ETF realignment. Since ETFs have become incredibly popular, there’s a lot of money involved there, too. These ETFs (especially the smart beta and equally weighted ETFs) tend to rebalance their holdings every quarter. This, in turn, has a big impact on individual stocks.
What do those factors mean for us? We always want to be where all this money is flowing.
In my stock-picking system, Portfolio Grader, the single biggest factor is a stock’s Quantitative Grade. And that’s exactly what this proprietary calculation measures: whether money is flowing into the stock – or fleeing it.
How to Get Started
As soon as you’re ready, I’ve got special reports for Platinum Growth Club waiting to help you. To prepare you for 2020, I’ve identified 99 Stocks to Sell Now, as well as my A-Rated Stocks to Buy Now.
Then there’s another, simple reason you’ll want to get positioned by December 1st:
It appears that the earnings recession we’ve faced this year will soon be at an end.
One of the biggest things I look for are positive earnings surprises; not only do they give stocks a short-term boost, they’re also a good omen for the future. Well, already for the third quarter, we saw 76% of companies reporting a positive earnings surprise!
And since the earnings results themselves were often weak, it makes year-over-year comparisons a lot easier next year. Then, given that analysts are expecting earnings growth to return in the first quarter of 2020, it all adds up to a great time to own stocks.
Investors who wait around will see those stocks take off without them – in anticipation of the earnings results I’m talking about. Because the market is forward looking, you always want to be first on the bandwagon with the best companies.
This is the pattern we’ve seen all along, during the greatest bull market of our lifetimes. And according to analysts at Bespoke, there’s another pattern that appears to be playing out now, just like we’ve seen several times in the last six years. On Friday, we’ll discuss its implications for market returns in the months and year ahead.
Note: Be sure to check out my brand-new 2020 forecast. I’m as sure about what comes next for this market as I have been about anything in my 40 years of investing.
My research shows that a rare combination of extremely powerful forces will send the market soaring to Dow 40,000 in the new year.
Now I know you might be skeptical. And I understand how you feel. This isn’t the first time the noise and the fearmongering in the financial media have tried to scare people out of the market.
But time and again, the market has just kept going up and up and up. And through it all I’ve shown my readers model portfolio gains of 457%, 751%, even 1,125%.
Look, I’ll be the first to tell you when I think the party is over. But right now, the last place you want to be is on the sidelines.
Missing this Great Market Melt Up to Dow 40,000 in the months ahead would be a devastating mistake. So I’ve posted my full forecast for you here. See my research for yourself and get the simple steps you can take right now to prepare for the massive market move ahead.