There are some signals that the stock market may be about to rise. First, almost everyone finally seems discouraged. Second a dear friend of mine who has done so very well at market timing thinks the bottom is near. There is a third reason below you won't want to miss.
If we look at a chart of how the equity market has performed since WWII, you will see how between major bull markets the Dow runs through a series of sideways motions. This chart shows how the market had a crash beginning 2-9-1966 that is similar to the current freefall. Then you can see how in there was a rise of 48% over 26 months before it crashed again down 365 in 18 months.. Then there was another rise beginning May 26 1970 as the Dow rose 74% in 32 months before there was another 48% drop over 21 months. These rises and sudden falls happened two more times from 9-21 1976 through 8-12-1982. Then the bull market finally really took over.
So the market may rise in the short term for even as long as 33 months. But beware this rise is likely to be a short term bear market rally, with a falling U.S. dollar. The chart makes it look like the market was a lot better than it was. To cash in on a sideways period like this, one has to get in and stay in or get in when the market is at its bottom and then get out early, before each crash. Most investors do exactly the opposite.
Jyske Bank feels that the market may consolidate as well. You can see their most recent portfolio allocation analysis which recommends increasing your equity portfolio to 55% of your total investments (and 45% in bonds).
Personally I remain out of shares, because I invest in what I know, (my business, real estate and AAA rated bonds in my PIEC plan).
Until next message may all your investing be good!
P.S. There is another way to find other market opportunities including picking up bargains as the stock market becomes increasingly volatile. This swinging motion can create cash if you are aware of and watch for subtle indicators.
I am no expert in this as I tend to look at the big, historic and economic view, however a friend of mine Hotchener Lax, has just created a report entitled 53 LITTLE-KNOWN INDICATORS THAT PRACTICALLY SHOUT WHEN IT'S TIME TO JUMP INTO STOCKS WITH BOTH FEET!
"Hotchener Lax" is a pseudonym my friend uses as he is a well-known author and lecturer who teaches regularly in an unrelated field. What I nor any of our mutual friends knew was that Hotchener at the same time, has been an active market professional -- managing a private hedge fund -- for many years and that at one time, he was the Principal Officer of his own Stockbrokerage firm.
He retired from the stock business at age 28, (in the mid-1960's) and went into trading stocks, bonds and options privately, full-time and has continued his private money management activities until this day in addition to his full time writing and teaching career.
He originally started this Special Report for his family. The information, knowledge and years of market experience were to be his legacy to them.
But when I saw this report I encouraged him to offer it to others as it gives a way for investors to spot moves in the market early on without ever being saturated.
For most of us this bear market will be the greatest opportunity we will ever have to buy shares at great prices. The bottom of the market is not likely to come for some time, but in the process of the big ups and downs there will be times when the market will suddenly rise.
He is offering his report at $79. Since we are friends and I helped him get this report in gear, I get to offer it to readers at a discounted price of $49.
In the 90-page electronic report, you'll find 53 tips on when to get into the market, such as subtle indicator #9. "Buy stocks when the number of new 52-week highs divided by the number of new highs plus new 52-week lows drops below 30%, then rises above 30%."
I cannot vouch for all these indicators as I have never used this type of system, but I can vouch for my friend. He is successful, diligent and has been in the market for 40 years. Plus many of the tips make sense such as tip #15. "It is generally safe to buy stocks -- or at least the SPX -- when the S&P 500 Index has been down for 23-25 (or more) of the last 40 days."
There are no guaranteed ways to get rich in the stock market. Even the most successful pros lose some time. Yet if you see the big picture that I write about and use subtle indicators, your chances for long-term profit dramatically increase.
Most of the subtle indicators are easy to see as well such as tip 25. "You may generally buy stocks when the stock of General Motors (GM) makes a new, 52-week high. This creates even a stronger signal when IBM and/or General Electric also make a new, 52-week high."
To order this report for an email download go to our secure server.