The markets are stuck in neutral right now…
The S&P 500 Index is down about 6% over the past few months. And the tech-heavy Nasdaq Composite Index has slumped even worse… It’s down around 12% over the same timeframe.
Bonds are in neutral territory, too. And most global stocks aren’t performing better than U.S. stocks.
In fact, 57% of the 4,936 stocks and exchange-traded funds (“ETFs”) rated by the Power Gauge earn “neutral” ratings today. And if you add the “bearish” or worse ratings… the total jumps to a staggering 80%!
That means only 20% of stocks right now earn a “bullish” or “very bullish” rating from the Power Gauge right now. So if you feel like the financial world is a mess… you’re not wrong.
It is a mess. But that doesn’t mean it’s time to throw in the towel…
Instead of giving up on the markets, be an optimist…
Again, 20% of stocks and ETFs still earn a “bullish” or “very bullish” rating from the Power Gauge.
Opportunity still exists in this stuck-in-neutral market. It just doesn’t feel like it.
Think about it this way…
For the past decade or more, an “everything bull market” swept through the markets. Just about every asset class saw big gains. And it happened for a simple reason…
After the housing bust in 2008, the Fed and most of the world’s central banks slammed interest rates to near zero. Then, they kept them at that level for years.
These actions created an incredible asset bubble. And as a result, nearly everyone has looked like a stock-picking genius over the past decade.
But today, things are a little different…
The Federal Reserve is raising interest rates. And inflation is soaring.
You’ve probably noticed that global instability is on the rise, too. We’re facing everything from international conflict to major supply-chain issues.
Heck, giant carmakers Ford Motor (F) and General Motors (GM) just announced that they’ll shut down their productions lines again. They can’t find the parts they need to make cars.
So folks, it’s time for a reality check…
The everything bull market is not the natural state of the world. It occurred thanks to U.S. and global “easy money” economic policies coming out of the housing bust.
In today’s environment, you need to do the work and find the best available opportunities. You can’t rely on rock-bottom interest rates to inflate the market like in the past.
What do I do in times like these? There’s only one logical path to follow…
Get out there and aggressively pursue the 20% of stocks that are working.
Otherwise, you’re left doing nothing – or worse. You might end up panicking in and out of the market as you try to find the right time to trade the “bearish” or “neutral” stocks.
Unfortunately, plenty of investors fall into that trap. And it’s a recipe for frustration.
Instead, as you know, you can simply turn to the Power Gauge to find that 20%. It’s the easiest way to find the best moneymaking opportunities in today’s stuck-in-neutral market.
But whatever method you use, make sure you have one. You need a reliable approach to find the 20%. That’s the best way to keep growing your wealth in these uncertain times.
The everything bull market is over. It’s time to get serious about hunting for winners.
Good investing,
Carlton Neel
Editor’s note: Because of the current market setup, Chaikin Analytics founder Marc Chaikin is making his “Industry Monitor” approach more accessible to individual investors. He believes it’s an ideal way to combat the serious market event known as a “rolling crash.”
Marc recently held a special event to explain exactly how everything works. Plus, he shared the names and ticker symbols of a pair of stocks he found using his Industry Monitor – one “bullish” and one “bearish” opportunity. Watch the FREE replay right here .
