A Pair of Bulls Are Entering the Arena

Unpopular bulls... Brett Eversole and Matt McCall team up in less than two hours... The 'wall of worry' is endless... A time for a 'catch up'... Thinking big... This new bull market isn't that new... Get the details tonight...

It can be hard to be optimistic today...

Stansberry Research senior editors Brett Eversole and Matt McCall sat down to record an interview together recently and found themselves commiserating. Both are bullish on the markets today, yet it can be difficult to find an audience willing to hear out the argument...

As Matt – the editor of the MegaTrend Investor and The McCall Report newsletters – said, sitting across from Brett for an in-person episode of his Making Money podcast last week...

For some reason, in this day and age that we live in this world, people tend to lean towards the negative and look for things that are wrong.

Brett, the lead editor of our True Wealth franchise, agreed and tagged the reason to the "brutal bear market" of last year. As he said of a sell-off like we saw in 2022...

It changes investor psychology. People start looking for problems. They start looking around for what's the next boogeyman, what's the next thing that's going to bring the market down.

Here in the U.S., as I (Corey McLaughlin) wrote just yesterday, the combination of still-high inflation and even higher debt costs is weighing on the lives of more and more people.

A recession, even if it's never called by the "official" scorekeepers, may still lie ahead... And we're inching toward another presidential election year in 2024 where I'd expect emotions to be stoked once again and will leave most citizens unsatisfied. That will provide a volatile backdrop for the nation and economy in general.

Those are just some of the sources of anxiety today... Yet, remember, we've also been of the mind that stocks hit a bottom last October. That's when the pace of inflation showed signs of peaking... The major U.S. indexes have pushed higher on balance since then.

What comes next?...

You will hear different views and outlooks here at Stansberry Research. It's part of what makes our business go. But in our world today, the next few hours and days are about Brett and Matt's outlook, and they are optimistic about the markets...

At 8 p.m. Eastern time tonight, Brett and Matt are going live with their latest outlook on the market, and if you've been on the fence about whether you should be buying or selling stocks today, their message is one you should consider.

As Matt said, "More people are joining our camp, but we're still an outlier," compared with the financial news and even among their Stansberry Research colleagues. Yet as he also mentioned, there's no doubt people are hurting, and the world has no shortage of conflicts and crises...

Stocks have climbed the proverbial 'wall of worry' for nearly a year...

Inflation. Banking crisis. Recession fears. The oversized influence of a few tech stocks on the market. China's economic slowdown. Speculation about more interest-rate hikes ahead. Any of these things and more could have been obstacles that knocked off the uptrend in many stocks since last October, but they haven't.

The benchmark S&P 500 is up roughly 25% since its October 2022 low and 17% year-to-date. The tech-heavy Nasdaq Composite Index, powered higher by a bid for AI-related stocks, is doing even better, up about 35% since its low in December 2022.

And while many popular tech names – like the so-called Magnificent Seven – have delivered outsized gains and no doubt influenced the indexes higher, market breadth – the number of stocks going up versus down – has been relatively strong.

Even today, after the pullback that began in August, nearly 50% of stocks trading on the New York Stock Exchange, for example, are trading above their 200-day moving average, a technical measure of a long-term trend.

A time for a 'catch up'...

To be sure, though, if you look at an equally-weighted index – which considers all stocks equal unlike the benchmark S&P 500 or Nasdaq that heavily weights Apple, or Nvidia, for instance, based on market cap – the stock market gains this year look much more modest.

The S&P 500 Equal Weight Index is up a little more than 4% since New Year's Day. Without giving too much away about tonight's broadcast, as Brett and Matt have discussed recently, this scenario could suggest more upside for the broader market ahead.

This is the unpopular bullish view right now, which Matt said he likes. Brett, who emphasizes momentum-based investing strategies in his work, wrote about this idea, too, earlier in the summer and we quoted his findings in the Digest in July.

When the S&P 500 Index significantly outperforms the Invesco S&P 500 Equal Weight Fund (RSP), for instance, history shows this is a bullish sign for the entire market. In his recent conversation with Matt, Brett sat down and talked a little bit more about this...

In a market where a few stocks are doing well and the rest are kind of moving along, you don't get a catch-down from the big stocks, you get a catch-up from the rest of the market. That's really what we saw start to happen in the summer.

Brett acknowledges the sell-off in the last few weeks, but he says it's temporary. He doesn't expect the Magnificent Seven – that is Apple (AAPL), Meta Platforms (META), Nvidia (NVDA), Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) – to the lead the market down.

In fact, the bullish run for stocks over the past 11 months has a long road ahead of it.

Brett says his momentum-focused investing strategy doesn't give him reason to expect a major downturn for stocks right now. I expect you'll hear much more about why he feels that way right now during tonight's event.

A time for big thinking, too...

As Matt's subscribers know, he takes the long view and seeks out investment opportunities in little-known, smaller companies that operate within innovative megatrends in the economy that Matt and his team identify...

I get a lot of grief from people because I tend to try to be very early into an investment and I've sometimes been really early and it goes sideways or down for a year or two... but I usually feel OK holding it, because I'm betting on innovation and technological breakthroughs and really just the world getting better every single day that we live here.

Together, Brett and Matt have put together their strategies to identify what sectors and which stocks in those sectors they believe are going to profit not just over the next three months but over the next two or three years by several hundreds of percent, Brett says...

When you look at history, the biggest gains come in small companies... and you get those biggest gains when new bull markets are kicking off and that's exactly where we are right now, and the crazy thing is, it's not that new. This bull market started in October.

I told you they were optimistic – and they have more reasons than I've discussed here. As Brett and Matt will explain in less than two hours, contrary to what your gut or mind might be telling you today, they believe right now is the time to think positively about stocks... and specific ones.

If you missed the AI craze earlier in the year, don't fret. They have other ideas. Tune in tonight to hear all the details directly from Brett and Matt, including information on how to access their top stock picks right now. Their new event goes live at 8 p.m. Eastern time tonight.

Click here to register and make sure you don't miss a minute. (And a note for Stansberry Alliance members: Be sure to check your inbox or StansberryResearch.com for this latest research from Brett and Matt, as you already have access to it.)

New 52-week highs (as of 9/11/23): Amazon (AMZN), Berkshire Hathaway (BRK-B), CBOE Global Markets (CBOE), Cameco (CCJ), Vita Coco (COCO), Comfort Systems USA (FIX), Alphabet (GOOGL), Intel (INTC), Eli Lilly (LLY), Novo Nordisk (NVO), Oracle (ORCL), Phillips 66 (PSX), Construction Partners (ROAD), Shell (SHEL), Trane Technologies (TT), Global X Uranium Fund (URA), Sprott Uranium Miners Fund (URNM), United States Commodity Index Fund (USCI), and Walmart (WMT).

In today's mailbag, feedback on yesterday's Digest, which included Dr. David "Doc" Eifrig's take on a concerning economic indicator... and a remembrance of 9/11... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com.

"Looking at the spread between GDP and GDI is maybe an indicator of how much the government spending is keeping GDP elevated!" – Subscriber Chris P.

"Corey, Thank you for writing about 9/11 in the Stansberry Digest. It is still painful, and gut-wrenching. Bless those souls who perished and the men and women who ran to help." – Subscriber F. Jason

All the best,

Corey McLaughlin
Baltimore, Maryland
September 12, 2023