Editor's note: In today's Masters Series essay, our friend Matt McCall – senior editor at our corporate affiliate InvestorPlace – shares why he's "super bullish"... the chart that convinced his boss to put hundreds of thousands of dollars into the stock market... and how you can learn which companies he's eyeing right now to make "10X" gains.

The No. 1 Reason I'm 'All In' on Stocks

By Matt McCall, Senior Editor, InvestorPlace

Every week, I sift through hundreds (if not thousands) of charts and data points as part of my investment analysis.

Like many people, I feel most of the information I come across is forgettable. While it might be interesting or notable, it's ultimately not important.

And then, you have unforgettable data. This is the REALLY important information.

That's the kind of information I have for you today... It's the No. 1 reason I'm "all in" on stocks. It's the top reason I believe we're in for a major market rally over the next 12 months.

In fact, this data caught my eye so strongly that I sent it to my CEO, Brian Hunt, in the middle of the night.

The next day, Brian told me at lunch that he moved $368,000 into the stock market right after seeing the chart I sent. Naturally, I laughed and assumed he was joking... but he wasn't.

This is a guy who has lived and breathed the stock market for the last 20 years. This is not some amateur investor who is new to the game. Brian is also a deliberate guy who typically doesn't make major financial decisions at the drop of a hat.

But after seeing what I'm going to show you today, that's just what he did.

But then again, I should not be surprised because I also have been busy buying stocks since that chart popped up on my screen.

This "super bullish" information comes to us from financial advisor LPL Financial.

It's a study that shows what happens after the Federal Reserve cuts interest rates when the stock market is near all-time highs, which the central bank did this week.

It had happened 17 previous times since 1980...

In all 17 instances, the S&P 500 was higher one year later.

Even more impressive, stocks gained an average of 15% in the year following the rate cut.

Here's the breakdown of annual returns...

Much of the time, making an investment decision is difficult and complicated. This isn't one of them.

It's very simple. President Donald Trump knows lower rates will boost the market. He knows a strong market will help him get re-elected. Trump wants to get re-elected. He wants low interest rates.

If you're still not sold after seeing the chart above, here are some more numbers...

Research firm Fundstrat looked at instances when the Fed cut interest rates during an expansionary period for the U.S. economy, going back to 1971. Every single time, the market was higher three, six, nine, and 12 months later. And the returns were impressive...

One year later, the average gain was 16.5%.

A 16.5% return from today would push the S&P 500 above 3,500.

For context, the average 12-month return for the S&P over the last 50 years is about 8%. So, in this particular situation of a rate cut near market highs, we see nearly twice the average returns.

Right now, the S&P 500 is sitting near an all-time high – and the Fed just announced its 25-basis-point rate cut earlier this week.

Now, while a one-year gain of 16.5% is impressive for the S&P 500, keep in mind that it's a broad index. By nature, broad indexes contain lots of average and weak companies. I believe high-quality growth stocks in the midst of emerging megatrends will do much better than the broad market.

These emerging megatrends include the 5G infrastructure buildout, self-driving vehicles, advanced batteries, the Internet of Things, gene therapy, and cannabis.

These hyper-growth megatrends are set to create stock market winners that gain many times more than the broad market. (This is what I talked about at my "10X Innovation Summit" live event this past Wednesday.)

But mark my words: Stocks are in a bull market. Low interest rates will act as an accelerant on that bull market.

If you're not yet long stocks, get long soon. If you're already long stocks, get longer.

Regards,

Matt McCall

Editor's note: Want to know the specific stocks that Matt is looking at right now? Well, earlier this week, he revealed more than half a dozen little-known stocks that he believes could double your money in a matter of months… You can access them for free right here.