The stock market certainly started April (and the second quarter) off with a bang!
The S&P 500 broke 4,000 for the first time ever, and by Monday, the Dow was back at all-time highs, too. Now, even though there was a little consolidation today, I firmly expect the good times to keep on rolling.
Consider this: According to the folks at Bespoke, April has consistently been the strongest month for the stock market in the past 50 years, with the Dow posting an average 2.24% gain. In the last 20 years, the index has been up 85% of the time.
The S&P 500’s performance has been equally impressive in April. In fact, Bespoke pointed out that it didn’t matter if the S&P 500 was up or down year-to-date heading into the month of April, the S&P 500 has historically climbed steadily higher during the month. Since 1983, the S&P 500 has climbed an average 1.89% in April.
Now, it’s important to note that April’s gains are slow and steady. Historically, the S&P 500 tends to trade relatively sideways with an upward bias in the first couple weeks of April. But after that, watch out; the S&P 500 starts to hit the gas. I’m betting you know why, too: first-quarter earnings announcement season kicks off around April 15.
I suspect that this April will be no different, as first-quarter results will represent peak earnings for the S&P 500. In other words, this is as good as it gets, folks.
As you may recall, thanks to easier year-over-year comparisons and the economic recovery starting to gain steam here in the U.S., many companies’ earnings and sales momentum accelerated during the first quarter. Factset expects S&P 500 companies’ earnings to rise 23.8% year-over-year and revenue to climb 6.3% year-over-year.
Speaking of the economic recovery, it certainly is robust. On Friday, the Labor Department revealed that new jobs climbed to 916,000, well above economists’ expectations for 675,000. In addition, the unemployment rate slipped to 6%. Manufacturing is also at a 37-year high, which is especially impressive considering the LED and OLED chip and plastic shortages.
Looking ahead to the March retail sales, I expect them to get a boost due to the $1,400 stimulus checks sent out to folks in March. We saw this occur in January after the federal government released $600 debit cards, which helped retail sales soar 7.6%. With a nearly additional $1,000 to spend, March retail sales should be even higher.
The bottom line: There are several catalysts to keep the stock market firing on all cylinders.
Is Your Portfolio Positioned to Prosper?
But is your portfolio positioned to prosper from the coming strength?
I am pleased to say that my Platinum Growth Club Model Portfolio sure is. I’ve been doing a lot of spring cleaning by fine-tuning my Model Portfolio over the past months to make sure that it is filled with the crème de la crème. And by this, I mean stocks that boast at least double-digit annual forecasted earnings and sales growth.
The reality is I expect the fundamentally superior stocks to lead the way higher during the first-quarter earnings season. In other words, whoever provides strong earnings and positive guidance will win, and I fully expect my Platinum Growth Club Model Portfolio stocks to emerge as the market leaders.
I have more than 100 stocks across all of my services (plus 18 LEAPS call options, or Long-term Equity Anticipation Securities in my Power Options trading service), and each and every one has strong earnings and sales growth. So, I look for my stocks to post wave-after-wave of positive earnings results, which, in turn, should drop kick and drive my stocks higher.
Of course, you don’t have to invest in all 100+ stocks. If you’d rather start small, I’ve got you covered there, too. My Platinum Growth Club service comes with my exclusive Model Portfolio. I handpick all of my Model Portfolio recommendations from my different stock services – Growth Investor, Breakthrough Stocks and Accelerated Profits – so you can rest assured that you’re always invested in the best of the best.
So, if you want to make sure your portfolio is “locked and loaded,” I encourage you to sign up for Platinum Growth Club today. It’s a great time, as I just released a new Breakthrough Stocks recommendation this morning and will be unveiling two more in this Friday’s Breakthrough Stocks April Monthly Issue. I will also be issuing a Trade Alert for a new buy in Accelerated Profits in the next few days, so there are plenty of brand-new opportunities for you to take advantage of. Remember, as a Platinum Growth Club subscriber, you have access to every recommendation, every Weekly Update, every Monthly Issue, and more!
The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: