Editor's note: It's time for a bull run...
Many investors fled the markets over the past few years as inflation, the Russia-Ukraine war, and global supply-chain disruptions weighed on several important asset classes. But a recent uptrend signals we've finally entered a new bull market. And you still have time to take advantage of this shift...
That's why Briton Hill – analyst for our corporate affiliate Chaikin Analytics – says it's critical for investors to understand how to navigate the early stages of this bullish setup in order to maximize long-term profits.
In today's Masters Series, adapted from the June 13 issue of the Chaikin PowerFeed daily e-letter, Briton details how we arrived at this new bull market... explains why remaining bearish could cause you to miss out on triple-digit gains moving forward... and reveals how investors can profit from this new setup...
We've Said It for Months... And Now, It's Official
I'm sure a lot of folks thought we were crazy at first...
Chaikin Analytics founder Marc Chaikin first declared that we were "now in the early days of an incredibly bullish setup" in late January. And we've maintained that view ever since then.
But it wasn't a popular call to make at the time...
Stocks were coming off their worst year since the 2008 financial crisis. The S&P 500 Index fell around 19% in 2022. And the tech-heavy Nasdaq Composite Index plunged about 33%.
And of course, higher interest rates and elevated inflation led to plenty of uncertainty.
But as of last Thursday... we're officially in a new bull market.
The S&P 500 closed at roughly 4,294 that day. That's 20% higher than its October 2022 low of around 3,577. (An "official" bull market is a 20% gain from the market's latest low.)
That's a great sign for us as investors.
As we'll discuss today, we don't believe the rally is close to ending. And importantly, it nearly always pays off to be a "bull" over a "bear" – especially over the long term...
Let's start with a chart of the S&P 500. As you can see, the index's latest uptrend started last October...
Now, I need to make one thing clear...
Just because we're in a bull market, that doesn't mean things haven't been volatile. Since October, several violent pullbacks have scared a lot of investors out of the action.
You can see what I mean on the chart above. Notice the drops last December and from February into March. The S&P 500 fell more than 7% both times before recovering.
At the end of the day, bull markets last significantly longer than bear markets. And you can make a lot of money if you play them correctly...
According to the Associated Press, the average bull market since 1932 is about five years. And during those bull markets, the S&P 500 has gained an average of about 178%.
Meanwhile, the average bear market since 1929 is slightly less than 20 months.
Things are looking up for the economy in general, too...
Goldman Sachs recently changed its stance in a positive way. The investment bank cut its likelihood of a recession in the U.S. this year from 35% down to only 25%.
Time is working against the market bears right now...
We officially entered a bull market last Thursday. Based on history, we can expect it to last several years. And we could see triple-digit gains as everything plays out.
Now, I suspect that the market will remain volatile in the days ahead. And the mainstream media will likely use that volatility to frighten investors.
But don't let scary headlines paralyze you...
Even if we enter another bear market cycle, history shows it will likely last a fraction of the next bull market. So stay positive, keep investing, and you'll do well over the long term.
Good investing,
Briton Hill
Editor's note: This isn't the only prediction Marc has nailed recently. Last November, he predicted a bank run in 2023. You see, Marc has developed a system with a 94% success rate of predicting where Wall Street will move its money next. And now, he's stepping forward with a new warning for the rest of this year...
Marc says we've reached a critical turning point that could give you the chance to double your money or more in 2023. And the last time he found a moment like this, you could have doubled your money 63 times. Click here to get the full details...