Editor's note: Don't leave gains on the table...

The stock market has pulled back this month following an impressive first-half performance – leaving many investors concerned about 2022's declines returning as we approach 2024. But according to Marc Chaikin – founder of our corporate affiliate Chaikin Analytics – this dip could lead to huge gains for investors who are paying attention...

That's why Marc believes it's critical for investors to continue putting their money to work in order to position themselves to profit once the market reverses.

In today's Masters Series, adapted from the August 10 issue of the Chaikin PowerFeed daily e-letter, Marc discusses the issues weighing on stocks right now... talks about how this market turmoil is opening the door for a slew of high-upside opportunities... and details how investors can take advantage of this unique setup...

For Now, I'll Be Buying the Dip

By Marc Chaikin, founder, Chaikin Analytics

You've probably heard that the stock market climbs a "wall of worry"...

Well, folks... this is what it feels like.

I'm sure you've seen all the "bearish" headlines about a credit crunch, an impending recession, a sharp drop in corporate earnings, and other cases of doom and gloom.

Today, many investors are concerned about the state of the U.S. economy...

Are we on the brink of a recession? Will it be a "soft" or "hard" landing?

And of course, people are still keeping their eyes on interest rates today. They're directly tied to the inflation picture and the future of corporate earnings.

But in the real world of buyers and sellers... the buyers are still in charge.

That's what a bull market is all about. And it's playing out in real time right now...

Not long ago, the stock market finished a strong first half of 2023. The S&P 500 Index gained about 16% through the end of June, while the Nasdaq Composite Index surged roughly 32%.

This bull market is different, though...

You see, technology stocks are leading the charge once again as the artificial-intelligence arms race has provided a massive boost for the sector. But this time, energy and financial stocks have been left behind in "bearish" and "neutral" trends.

When you add in the aversion to interest-rate-sensitive sectors like utilities and consumer staples, you're left with what I call a "bifurcated bull market."

In other words... we're living in a stock picker's market.

Collectively, second-quarter earnings were expected to fall about 7% year over year. That would make three consecutive quarters of declining earnings for companies in the S&P 500.

If that's not a recession, we need to redefine the term.

We're now on track for a roughly 5% decline in corporate earnings in 2023. That would be the largest year-over-year decline since the pandemic-driven results in 2020.

The fundamental bears have been front and center in the financial media, of course. They're waiting for the other shoe to drop.

But it's not all bad...

Just look at Amazon (AMZN). In its most recent quarter, the online retail giant beat Wall Street estimates on profits and revenue. And it raised its guidance for the coming quarter.

That's a ringing endorsement for the strength of the U.S. economy. So it's no surprise that stocks have been making new highs and breaking above previous resistance levels...

Folks, the market is still grinding higher. Despite the turbulent earnings season, the S&P 500 is up around 3% since late June. And the Nasdaq is also up about 3% over that span.

Now, those numbers aren't huge. But it shows us that the market is still working its way up.

It's also OK if we see a short-term pullback. That's healthy in a longer-term bull market.

In short, I'm still "bullish" on stocks today. And I still recommend focusing on opportunities in strong industry groups with "bullish" or better Power Gauge ratings.

Continue to take advantage of any broad market pullbacks between 3% and 5%. That's when you want to add to your current holdings.

Put simply, the stock market is showing significant signs of strength. And the recent trend remains firmly in our favor.

I expect to see further gains throughout the rest of 2023.

Even if the S&P 500 sees its usual bumps in the road in September and October, a strong December finish could carry the index up to between 4,800 and 5,000. That's 7% to 12% potential upside from its current level.

A "buy the dip" approach is the right strategy in the current market climate.

Good investing,

Marc Chaikin

Editor's note: Marc called this bull market way back in January. And he predicted the bank fallouts that took place earlier this year several months in advance. Now, he's stepping forward to warn investors about one final twist before the end of 2023...

The twist is, you can use a strategy that's designed to generate quick gains for this specific time in the market. So, Marc recently hosted an online presentation to share this unique moneymaking tactic. Click here to watch the full replay...