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Embrace the stock breakout for colossal gains in 2023

You might not believe it. But the stock market is booming”escape mode” right away.

Shares rose yesterday after the December PCE report confirmed that inflation continued to tumble in December. The PCE inflation rate fell 50 basis points to 5%, marking the second consecutive month of 50 basis points of disinflation.

At this rate, inflation will be back to “normal” by April!

In response, the market soared. The S&P500 increased by more than 0.5%, while Nasdaq jumped more than 1.2%.

The rallies continue what has been a hot start to the year. Year-to-date, the S&P 500 is already up more than 6%, while the tech-heavy Nasdaq is up more than 10% — and it’s not even February yet.

Some stocks fare even better. For example, our Core Portfolio is already up nearly 20% this year!

At this point, it has become quite clear that a new bull market is emerging.

Stocks aren’t doing what they’re doing right now: rallying day after day, week after week, to retake the long-term moving averages, with widespread participation from all stocks and risky assets like technology, small caps and growth lead the way – unless they enter a new bull market.

If it looks like a duck, walks like a duck, and quacks like a duck, it’s probably a duck.

This, folks, is probably a new bull market.

Right now, all the signs are pointing up.

But why?

In a nutshell, everything is getting better – and no one saw it coming.

Surprisingly Supportive Macros

The market overreacted to the particularly bad circumstances of 2022 and thought they would persist through 2023 and beyond. It’s normal. When bad things happen, humans tend to think things won’t get better.

But things are looking up. These particularly bad circumstances die here in 2023. And as they do, stocks come back to life.

Despite all the talk of runaway inflation, almost all indicators are collapsing, implying that inflation should return to “normal” levels by March, April or May. Just look at yesterday’s PCE numbers from December. Inflation is on track to normalize by spring. The CPI figures tell the same story.

Despite all the talk of a deep recession, nearly all consumer spending indicators remain resilient and point to continued growth in the US economy. just look Visait is (V) and MasterCardit is (MY) last week’s quarterly earnings reports. Both pointed to continued high spending in the last three months of 2022 and rising spending in the first month of 2023.

A table detailing updated quarterly Mastercard data

Despite all the rhetoric about an ultra-hawkish Fed, over the past few weeks almost every member of the Fed has said their job is nearly done.

And despite all the talk of another 20+% crash in stocks, nearly every technical indicator suggests the stock market is in breakout mode right now. Just look at the classic technical breakout that the S&P 500 is staging!

A chart tracking the movement of the S&P 500, highlighting its technical breakout

Everyone thought things were going to get worse. Now they are better. So, the stock market is in breakout mode.

And this escape has legs.

Stock breakout has power

Current economic conditions will continue to improve as we move forward into 2023. Inflation will continue to decline. The Fed will take its foot off the accelerator pedal. And the economy will stabilize.

During all that is happening, stocks will continue to soar.

The gains will not be small.

Remember: Fortunes are made in bear markets.

Specifically, fortunes are made in months when bear markets suddenly turn into new bull markets. And that is exactly what is happening right now!

History says that the S&P 500 rises about 10% each year. In a very good year, the market will increase by 20%.

But in the months when bear markets turn into bull markets, these gains are injected with steroids.

For example, in the raging bull market of 2019, the S&P 500 rose about 25% in one year. But when the COVID-19 crash turned into a new bull market in March 2020, the S&P 500 rose over 60% over the next five months!

A graph showing the evolution of the S&P 500 during the crash caused by COVID-19 and the year after

In the three bull market years leading up to the 2008 financial crisis, the S&P 500 rose about 40%. But when the crisis ended and turned into a new bull market in March 2009, the S&P 500 jumped about 80% over the next year.

A chart showing the performance of the S&P 500 during the Great Financial Crisis and the year after

Even in the last two years of the biggest bull market of all time – the dot-com boom of the late 1990s – the S&P 500 still only rose about 25%. But after the dot-com crash bottomed out and turned into a new bull market in late 2002, the S&P 500 rose about 50% over the next year and changed.

A graph showing the evolution of the S&P 500 during the dot-com crash and the year after

You get the point…

The biggest returns in Wall Street history almost always happen when bear markets turn into bull markets.

The last word

And that is exactly what is happening right now.

Therefore, at this very moment, a generational opportunity is presented to you to achieve huge gains in the stock market.

Are you going to capitalize on this opportunity?

My team and I have put together a list of the best stocks to buy for this 2023 market breakthrough.

We think a number of them could skyrocket more than 100% in the next 12 months alone.

So if you are really interested in getting huge returns in this stock market breakout, you need to find out about these actions.

As of the date of publication, Luke Lango had (neither directly nor indirectly) any position in the securities mentioned in this article.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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