This Could Be the Beginning of a New Bull Market

The S&P 500 Index finished yesterday up more than 20% from an important low...

That makes sense, considering market sentiment appears to be positive right now. But is this a short-term rally? Or are we at the beginning of a new bull market?

Let's talk about it...

Headline No. 1:

One analyst believes the bear market lows are in.

McCall's Call: October 13, 2022, was an important day in the stock market...

That morning, the Consumer Price Index showed that inflation was running hotter than expected. And after months of soaring inflation, this wasn't what investors wanted to hear.

Stocks had been falling sharply for most of the previous nine months. They were down 25%-plus from their January 2022 peak. And that morning, the S&P 500 was set to open another 2% lower at a fresh multiyear low.

But what came next was surprising...

After a small dip at the market's open, stocks rocketed higher. And the S&P 500 finished the day up nearly 3%. It was a sharp reversal that came on negative news.

Today, we know that October 13 marked an important intraday low for stocks. Since then, they've surged nearly 23%.

That may also come as a surprise to a lot of folks. The mainstream media would have you believe that the market is falling apart. But that's simply not the case...

U.S.-based stocks have been strong for months now. And technology stocks have led the rally – with the Nasdaq Composite Index up 32% from its intraday low.

But that's not all.

According to Chief Market Strategist Ryan Detrick from the Carson Group, the recent 20%-plus rally in stocks could signal that a new bull market is already here.

Since 1950, the S&P 500 has closed 20% above a bear market low 13 times. In 10 of those instances, stocks continued higher without hitting a new low – which means they reversed and hit fresh lows only three times. Two instances were after the tech bubble burst and the third was during the global financial crisis.

Even more important, the S&P 500 was up 10% on average over the next six months and 17.7% over the next 12 months. Those are solid gains, and they come with good odds, too...

The "win rate" was 76.9% over the next six months and 92.3% over the next 12 months.

You can see a summary of Detrick's study below...

Action like we've seen recently has a reliable track record of predicting higher stock prices. And I don't expect this time to be any different.

Still, it's worth noting that the market may be a little bit stretched to the upside today. So be prepared for volatility or even a correction that cools off the current bullish sentiment in the short term.

But over the next 12 months, bigger gains are likely ahead.

Headline No. 2:

Volvo unveiled a new lower-priced electric SUV.

McCall's Call: The electric-vehicle ("EV") price war is still going strong. In recent months, companies like Ford Motor (F) and Tesla (TSLA) have been slashing prices on their cars to try and drum up demand for first-time EV buyers.

Price is a huge sticking point for EV adoption. In fact, 31% of Americans listed price as the most important factor when considering an EV. And for good reason...

Last year, the average EV cost more than $75,000 in the U.S. when including tax credits. The average price of all vehicles sold (including EVs) in the U.S. came in around $45,000.

The latter price is more in line with what folks are looking for. One survey from consulting firm Deloitte even confirmed this by finding that 75% of folks who are thinking about buying an EV intend to spend less than $50,000 on their purchase.

So for EV adoption to really pick up steam, prices have to come way down.

And that's exactly what Volvo's newest offering intends to fix...

Earlier today, Volvo revealed its EX30 electric SUV at an event in Italy. It's a smaller version of the EX90 EV, which Volvo plans to sell for about $109,000 in Europe and $80,000 in the United States. Meanwhile, the EX30 will start at $35,000.

Regular readers know that I believe it's only a matter of time before the majority of car sales in the U.S. are EVs. But we're not there yet...

More than 10 million EVs were sold in the U.S. in 2022 – up 55% from the 6.7 million sold in 2021. And they made up about 9% of all new cars sold. But this growth is only just getting started.

Making EVs more affordable means slimmer profit margins in the short term. But it will help accelerate their speed of adoption. I estimate that EVs will have a market share closer to 25% of all car sales by the end of the Roaring 2020s.

I consider EVs and the future of transportation – what I call Transportation 2.0 – an inevitable megatrend. And as a result, it's something I believe you must have exposure to in your portfolio.

In fact, in the latest monthly issue of The McCall Report – which was just released this afternoon – I recommended a company that is perfectly positioned to profit from this trend.

It makes the connectors and sensors that make EVs possible. And it's setting up for a big move higher in the coming months.

Find out how to be among the first to learn its name and ticker symbol by clicking here now.

Here's to the future,

Matt McCall
Editor, Daily Insight
June 7, 2023

Did You Miss My Latest Podcast?

The headlines haven't disappointed so far this week... Tech giant Apple (AAPL) hit a new all-time high. But then, concerns surrounding its pricey new product caused the stock to take a tumble. Meanwhile, the U.S. Securities and Exchange Commission ("SEC") has been busy in the crypto space – and it has set its sights on Binance and Coinbase Global (COIN). So on this episode of Making Money With Matt McCall, I dive into all of it. If you're in the mood for one of my rants, this is an episode you won't want to miss.

I start off by discussing the latest action in Apple. Then, I focus on the biggest news. The SEC has sued Coinbase – the well-known and incredibly popular U.S. cryptocurrency exchange. So what does this mean for the future of cryptos, bitcoin (BTC), and U.S. investing in general? You'll have to tune in to find out.