It was a terrible year for the stock market. So, as investors, we may struggle to be grateful for much at the Thanksgiving dinner table.
But let me give you something to cheer you up. We are most likely seeing the birth of the new bull market right now. And if you make the right choices today, you could make yourself a small fortune by next Thanksgiving.
Hard to believe given how stocks have performed in 2022? I understand. But the data is irrefutable. And any good investor will tell you that to make a lot of money in the markets, you need to ignore your emotions and follow the data.
Well, here’s the data.
In mid-October, the S&P500 was down more than 24% from its yearly high and traded at less than 18 times trailing earnings. In other words, not only were the stocks beaten, but they were also cheap.
It turns out to be an incredibly rare combination. Over the past 70 years, the S&P has found itself in a similar “beaten and cheap” situation (down more than 24% and trading at less than 18 times earnings) in just 103 weeks; only 2.9% of the time.
This is also an incredibly bullish combination. In those 103 weeks, stocks were higher a year later 99% of the time! The average yield: a whopping 26.4%.
There’s only been one week in the last 70 years that stocks haven’t recovered from situations like the ones we saw in October 2022.
It was when? The first week of October 2008, the day after Lehman’s bankruptcy – a truly unusual and unprecedented time. Even then, however, stocks were higher 14 months later.
Put another way…
More … than 70 years historical data shows that there is a 99% chance stocks will soar over the next 12 months – and a 100% chance they will recover over the next 15 months.
And the rally is unlikely to be small. We are talking about gains greater than 25%.
The final word on this buying opportunity
Based on individual stock, I think some stocks could go up over 500% next year. After all, the first rounds of new bull markets are where all the big money is won.
That’s why the smart money is gearing up for a mega-rally next year!
Of course, it’s been a terrible year for the market. But guess what? Next year promises to be excellent. And if you take advantage of your opportunity today, the 2023 Thanksgiving turkey could be a lot bigger than this year’s.
It’s time to be bullish. Learn more about the historic stock market opportunity today.
As of the date of publication, Luke Lango had (neither directly nor indirectly) any position in the securities mentioned in this article.