Editor’s note: Here at the Chaikin PowerFeed, we’re always glad when other smart folks “in the room” see similar evidence for one of our investing theses…
As regular readers know, Chaikin Analytics founder Marc Chaikin expects a big second half of the year in the markets. It’s all part of his broad election-year thesis for 2024.
Meanwhile, our friend Brett Eversole over at our corporate affiliate Stansberry Research also sees the potential for big gains ahead…
This essay first appeared in yesterday’s edition of Brett’s free DailyWealth e-letter. And in it, he explains how double-digit upside for stocks is possible to finish the year…
The S&P 500 Index just finished its strongest first half since 2021… And before that, we haven’t had a better start since 2003.
Stocks jumped 15.3% through the end of June. That’s a rare feat – and better than a typical year for stocks.
But the good times are far from over…
You see, history shows that this kind of start means more gains are coming. And as I’ll explain, we could see another double-digit rally by the end of the year…
When it comes to investing, you want to follow the trend. That’s what works. The reason why is all about investor psychology…
When prices begin moving higher, folks want in on the gains. Higher prices bring in more and more buyers… And the flood of new buyers pushes prices even higher.
It’s a virtuous cycle. When the uptrend is in place, it tends to stay that way. That’s exactly what we’ve seen over the past two years. Take a look…
We’re nearly two years into this bull market. Stocks are up more than 50% from the October 2022 low. And the first half of 2024 saw a big part of that rise.
Again, stocks rallied 15.3% in the first half of the year. Best of all, according to history, that’s a strong sign of more gains to come.
To test it, I looked at every double-digit rise in stocks during the first half of the year. Since 1950, that has happened 18 times. Here’s what came next…
Returns don’t tend to slow down after a great start to the year. Instead, stocks have a history of rallying 6.8% through the end of the year. And 12 months later, the typical gain was an impressive 13.2%.
The results were even better in recent history. We’ve seen seven similar situations if we shorten our time frame to the past 30 years. Here’s what happened after those setups…
The typical return was another 10.6% rise by the end of the year. And those gains swelled to 15% over the next 12 months.
Plus, stocks were higher by the end of the year 100% of the time… So the odds of success are stacked massively in our favor.
At DailyWealth, my colleagues and I often write about the power of investing with the trend. And today, the trend is in our favor.
History shows this momentum should continue. We could see double-digit gains by the end of 2024. And that means we want to stay bullish right now.
Good investing,
Brett Eversole
Editor’s note: In DailyWealth, Brett and his team share more than just the day-to-day opportunities they see in the markets…
They also discuss strategies that can help you safely – and steadily – build a lifetime of wealth.
Like the PowerFeed, you can receive DailyWealth for free in the morning every weekday the markets are open. Learn more about DailyWealth and sign up by clicking here.
