By: Costas Bocelli — October 23, 2019
Sure, at times it’s been a bumpy ride. But the S&P 500 has gained 20% through the first three-quarters of the year.
That’s the best performance for the large-cap index since 1997.
After one more shakeout early this month, we find the S&P 500 trading back towards 3,000 and within roughly one-percent of hitting new all-time highs.
(Click on any image to enlarge)
Now here’s some really good news…
We think there’s plenty more to go in this bull market rally and it starts this week!
Welcome to the best time of the year for stocks.
From the middle of October to the middle of April the stock market has a tendency to generate above average returns.
In other words, we’re just now entering the strongest six-month period of the calendar year.
And there are more seasonal forces that point to stocks moving higher.
I’m referring to the presidential election cycle.
Currently we’re in the third year of the Trump administration.
Historically, the third year has been the strongest.
And this year has certainly met the expectation with the S&P 500 up 20% year-to-date.
But can you guess which one happens to be the second strongest year in the cycle?
It’s the fourth year, also referred to as the Election year.
As you’re probably aware, Americans will be going to the polls during November 2020.
Since 1950, there have been seventeen general election years.
And fourteen of those years, or 82% percent of the time, the S&P 500 generated a positive return.
So whether you care to see Trump reelected or defeated, investors can be unified knowing that the odds are stacked in their favor, and that stocks will likely rise in 2020.
How to Generate Market Busting Returns
Now if you really want to stack the odds of generating superior returns, you’ll want to focus on the best performing sectors of the stock market while avoiding the worst performing ones.
Technology continues to be the dominant broad sector in terms of long-term relative strength.
But there are also other sectors that are showing strong leadership too.
The Utilities, Industrials and Real Estate sectors are also considered favorable in terms of relative strength.
Within these sectors, you’ll find many securities that possess strong traits of technical strength and are outperforming the stock market.
Have a look at the performance of this one particular security as an example …
Now I’ve blurred out the ticker symbol.
But in just a moment, I’ll show you how you can instantly gain access to it.
This particular stock has gained +72% year-to-date, far exceeding the +20% return in the S&P 500 over the same period.
The stock is hitting new highs and we think there is massive potential for even further gains looking ahead.
This is just one of twenty-three specific investment recommendations that we’ve identified in Sector Focus, our premium monthly investment newsletter.
We’ve also identified four exchange traded funds (ETF's) that are outperforming the market benchmarks for those that prefer a more diversified exposure to the sectors.
And some of these recommendations distribute income streams that yield greater than 3% annually. That’s great news for income-oriented investors.
The latest edition of Sector Focus (including all 27 recommendations) was published just this week.
The thousands of readers already signed up to Sector Focus are sifting through all those investment ideas as we speak.
But for those not yet signed up to Sector Focus, now’s a great time to come aboard.
You see, if stocks are about to break above those record highs, there's little in the way of overhead resistance.
So, how much is left in the tank?
We think plenty, probably a lot more than most investors can imagine.
The cost of this membership is super low…
…about 12 trips to your local barista for your favorite coffee will get you into one of the hottest investment clubs in the industry.
To secure your membership and gain immediate access to the 27 investment recommendations published just this week, click here now.
Trust me, your portfolio will thank you for it.
Until next time,