The Waves Are Choppy, but the Tide Is Rising

Brett Eversole and Matt McCall on the markets... The waves, the ripples, and the tide... Invoking Charles Dow, circa the 1800s... Most people will make this mistake... Stocks to ride the trend higher...

Two of our top 'bulls' chopped it up...

Last night, Stansberry Research senior analysts Brett Eversole and Matt McCall "entered the arena," as I (Corey McLaughlin) put it in yesterday's Digest. In front of thousands of viewers who watched their brand-new presentation, Brett and Matt made their case about why they're bullish on stocks right now...

If you missed this totally free event, you can catch a replay right here.

Admittedly, Brett and Matt know their upbeat outlook on the market might be an unpopular message to send today. We don't need to tell you about the litany of concerns facing the world and the U.S. economy today.

But to hear Brett (the lead analyst of our True Wealth franchise) and Matt (the editor of the MegaTrend Investor and The McCall Report newsletters) tell it, today's environment doesn't have to be bad news for stocks in the months and years ahead.

As they detailed throughout the presentation, widespread pessimism about the stock market today is actually a reason to be bullish. And they shared how they are telling their subscribers to position their portfolios for the biggest gains possible.

As Matt put it during the event, which covered a lot of ground...

I'm an optimist... but I'm also a realist.

For instance, I don't think anyone predicts the U.S. debt level is going to magically shrink to a healthy level. Obviously, this isn't good for America in the long run. Or look at credit-card debt. It just soared to $1 trillion for the first time ever, and the average interest rate on those cards is over 20%. Simply mind-blowing.

But the fact is, nobody knows when the day of reckoning will come. It could be 20, 50, 100 years away. Maybe even longer. Who knows?

In the meantime, Matt – who seeks out long-term winners from little-known companies in high-growth industries – said he doesn't want to be sitting on the sidelines missing out on potential gains that he fully expects to see. As he said last night...

Here's a prediction I am 100% confident about: Despite all that you can find wrong with the world, incredible innovations continue to happen. New technologies will continue to be developed. And as they go mainstream, huge sums of money will be made for investors in the right stocks.

Brett, meanwhile, believes a new bull market has begun...

And he says it's not even that "new" now that it stretches back nearly a year to last October. As I wrote yesterday, stocks have been climbing the proverbial "wall of worry" – which is typically what you see in bull markets...

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.

Depending on your definition, and if you consider the really long term, you could also make the case that the bull market never left. This may come as surprising news to some readers, but Brett has made this case himself here in the Digest as far back as January...

Back then, Brett shared a similar unpopular message that while U.S. stocks were still in a short-term or "cyclical" 12- to 18-month bear market, stocks were still in a longer-term or "secular" uptrend that typically lasts a decade or two. He wrote in the January 30 Digest...

We also get shorter, cyclical trends that might move opposite the direction of the secular moves... You'll notice big moves higher during the secular bear markets and big moves lower during secular bull markets.

But the secular trend always takes over again. And that's the true driver of stock returns.

I can't overstate how important it is to understand the secular trend. It's the difference between flying forward with a gale-force wind at your back or getting hit with one head-on.

You can read more about this concept in the follow-up essay Brett wrote back on January 31, where he also detailed just how high he believes the Dow Jones Industrial Average could go in less than a decade.

Today, Brett says stocks are once again trending higher in the short term – and that's still within the secular trend that could last for years. Last night, he hit on this point again from a different angle...

The waves, the ripples, and the tide...

Brett talked about one of the oldest technical indicators out there: an idea developed by Charles Dow, one of the co-founders of Dow Jones, back in the late 1800s. This may have been my favorite part of the entire event... I can't resist timeless and time-tested indicators or market insight.

As Brett explained, Dow likened the market's moves to ocean waves...

At the most basic level, there are ripples...

These are the day-to-day fluctuations of stocks, up 1% one day... down 2% the next. Maybe every few months, you see a bigger 4% move. You could say this is what we saw in the major U.S. indexes in August, for example...

These might feel like big, volatile events the day they happen, but over time, you realize they're nothing more than ripples.

Next, you have the waves...

These are bigger and slightly longer trends in stocks... They're a bit more noteworthy and last longer than ripples but aren't an "all clear" long-term signal for stocks... You could say various periods in late 2022 or this year qualify.

Lastly, there's the tide, which represents the long-term trend in this analogy...

Dow tracked two major sectors to determine whether the "tide" was rising or falling. Following Dow's strategy would have worked much more recently, too, like in the rebound from the dot-com bust in the early 2000s and the wake of the financial crisis in 2009.

I won't spoil the details, but as Brett shared, these two sectors have been headed higher in tandem lately – another signal to him that a new longer-term uptrend is ongoing. I can promise you won't see this discussion anywhere in the mainstream financial news.

Brett and Matt covered a ton more last night...

They covered everything from inflation, GDP, and whether shares of Nvidia (NVDA) are in a bubble right now... to what to make of the "inverted yield curve," the plight of "perma-bears," and why they think a flood of cash could pour into stocks, pushing prices higher. As Brett said...

More and more folks admit to "feeling" bullish lately.

But the fact is, even after stocks rallied more than 20% off last year's bottom... and even with the momentum of gains that began with the AI frenzy, most people are still not in stocks.

He suspects more and more will, but when they do start buying en masse again, most people will chase the "wrong" stocks. They'll try to catch yesterday's fads – like certain AI-related stocks, for example – and end up getting burned.

Instead of doing that, Brett and Matt have come up with a list of the "right" stocks to buy today. They shared how folks could access these stock picks and ride the tide higher to perhaps hundreds-of-percent gains...

These stocks are rooted in Matt's long-term investing approach in sectors with potential long-term growth... and the results of the proven system that Brett has used over the years to pinpoint opportunities for massive gains.

Brett said that rather than chasing stocks that have already soared...

You have to dig a little deeper. You have to look in the less obvious places. You have to know what's coming next.

The good news is Matt and I believe we've found the 10 best stocks for you to buy as soon as possible. That's because, as we're about to show you, we know which stocks should skyrocket from here.

We know this is based on investing history, market momentum, shifts in investor sentiment, technical analysis, and based on a multimillion-dollar investment system that's outperformed the average hedge fund more than six times over for more than a decade.

So be sure to check out their event if you haven't already.

You can watch a replay for free right here.

And as I said yesterday, Stansberry Alliance members, you are welcome to tune in, but you can also find this latest research from Matt and Brett and their actionable advice in your inbox or on the Stansberry Research website.

New 52-week highs (as of 9/12/23): Array Technologies (ARRY), Berkshire Hathaway (BRK-B), Cameco (CCJ), Vita Coco (COCO), Intel (INTC), Liberty Energy (LBRT), Eli Lilly (LLY), Omega Healthcare Investors (OHI), VanEck Oil Services Fund (OIH), Phillips 66 (PSX), Construction Partners (ROAD), Shell (SHEL), SLB (SLB), Sprott Physical Uranium Trust (U-U.TO), Sprott Uranium Miners Fund (URNM), United States Commodity Index Fund (USCI), and Walmart (WMT).

In today's mailbag, thoughts about at least one source of inflation fuel... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com and tell us what's on your mind.

"Recently labor unions have scored massive increases in their contracts. UPS, an employer with thousands of employees settled a wage dispute with management for pie-in-the-sky wages and benefits. Now teachers and their unions are about to do the same. Next up is the longshoremen's contract which also has thousands of employees. If politicians can't see the ramifications of all of this and its eventual stress on inflation then they have their head in the sand." – Subscriber John M.

All the best,

Corey McLaughlin
Baltimore, Maryland
September 13, 2023