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Why Stocks Are Poised To Soar

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Since the pandemic lows in late March, the Dow has surged by more than 64%, the S&P by 66%, the Nasdaq by 82%, and the small-cap Russell 2000 by more than 86%!

It’s been a record-setting move with all of the indexes positive for the year.

But the best part is that it looks like there’s a lot more upside to go.

That was echoed by Goldman Sachs last week when they forecast the market to hit 4,300 by the end of next year (+20.3% from here); and 4,600 by the end of 2022 (that’s another +7.0% on top of that). All in all, that represents a 28.7% increase from where we are today.

And if you get into the right stocks and industries, your gains could be far greater than that.

These are historic times for both the economy and the market.

And if you play it right, you could transform your portfolio.

History In The Making 

Q3 GDP just showed a 33.1% growth rate, which was the largest in history.

Full year GDP for 2021 is expected to grow at the fastest pace in 38 years.

We just saw record job growth over the last 6 months.

Home sales just hit a 15-year high.

Retail sales recently hit an all-time high.

And interest rates, which are near zero, are at all-time lows, and are expected to stay that way for the next 3 years or longer.

With all of these bullish economic records being made, it should come as no surprise that stocks have been setting records as well with all of the major indexes having just recently broken out to new all-time highs of their own.

Continued . . .

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Time’s Almost Up! Get Your FREE Copy of Finding #1 Stocks – A $49.95 Value

The Executive Vice President of Zacks Investment Research, Kevin Matras, is very optimistic about our country’s financial future. As the economy continues to grow stronger, he expects stocks to soar far higher right through the market blips and dips.

But what’s the key to being successful? Knowing the right strategies and where to find stocks that will lead the market as the recovery continues to build momentum.

For a limited time, Kevin is offering his hardcover book, Finding #1 Stocks, absolutely free. In the book, he shares exclusive secrets to picking stocks including the exact formulas of strategies that produced gains of +122.2%, +153.0%, and even +156.8% from 2017 through Q2 2020.¹

This brief opportunity will end at midnight Saturday, November 21 or when inventory is depleted. Don’t miss your chance to get an edge in the game.

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Vaccines Are Coming and Stocks Should Skyrocket

Very soon, at least two COVID vaccines will become available. Not to mention new therapeutics to treat the virus if you get infected.

And these breakthroughs are being hailed as the catalysts that will finally let the world get back to normal.

That means, everybody going back to work, going out to eat, traveling, going on vacation, spending money, and just living your life.

Even though social distancing restrictions are still in place, the amount of pent-up economic demand that was unleashed when we came off total lockdown was historic.

But we all know that a large portion of our economy was left behind.

When restaurants, and airlines, and hotels start opening back up to full capacity, not to mention concerts and sporting events, tourism and travel destinations, and every business big and small that benefits from servicing these industries, the economy is expected to grow at unprecedented levels.

And that should send stocks skyrocketing.

But remember, the market is forward-looking. It won’t wait until it happens. It will start moving in anticipation of that.

And that means the time to act is now.

Do What Works 

Making money in the market is easier than you think.

You don’t need to reinvent the wheel. You only need to do a few things right.

And by implementing tried and true methods that work, you can avoid costly mistakes and take full advantage of this historic opportunity.

For example, did you know that stocks with a Zacks Rank #1 Strong Buy have beaten the market in 26 of the last 32 years with an average annual return of 24.7% per year? That's nearly 2.5 x the S&P. But when doing this year after year, that can add up to a lot more than just two and a half times the returns.

And did you also know that stocks in the top 50% of Zacks Ranked Industries outperform those in the bottom 50% by a factor of 2 to 1? There's a reason why they say that half of a stock's price movement can be attributed to the group that it's in. Because it's true!

Those two things will give any investor a huge probability of success.

But you’re not there yet, as those two items alone will only narrow down a field of 10,000 stocks to the top 100 or so. Way too many to trade at once.

So the next step is to get that list down to the best 5-10 stocks that you can buy. 

Proven Profitable Strategies 

Picking the best stocks is a lot easier when there’s a proven, profitable method to do it.

And by concentrating on what has proven to work in the past, you’ll have a better idea as to what your probability of success will be now and in the future.

For example, if your strategy did nothing but lose money year after year, trade after trade, over and over again, there’s no way you'd want to use that strategy to pick stocks with. Why? Because it's proven to pick bad stocks.

On the other hand, if your strategy did great year after year, trade after trade, over and over again, you'd of course want to use that strategy to pick stocks with. Why? Because it's proven to pick winning stocks.

Of course, this won't preclude you from ever having another losing trade. But if your stock picking strategy picks winners more often than losers, you can feel confident that your next trade will have a high probability of success.

Here are a few of my favorite strategies that have regularly crushed the market year after year.

New Highs: Studies have shown that stocks making new highs have a tendency of making even higher highs. And this strategy proves it. The alignment of positive price action and strong fundamentals creates all the necessary conditions to see these stocks soar to even greater heights. Over the last 20 years (2000 thru 2019), using a 1-week rebalance, the average annual return has been 47.8% vs. the S&P’s 6.0%, which is nearly 8 x the market.

Filtered Zacks Rank 5: This strategy leverages the Zacks Rank #1 Strong Buys, and adds two time-tested filters to narrow the list of stocks down to five high probability picks each week. Over the last 20 years (2000 thru 2019), using a 1-week rebalance, the average annual return has been 54.1%, which is 9 x the market.

Small-Cap Growth: Small-caps have historically outperformed the market time and time again. Often these are newer companies in the early part of their growth cycle, which is when they grow the fastest. This strategy combines the aggressive growth of small-caps with our special blend of growth and valuation metrics for explosive returns. Over the last 20 years (2000 thru 2019), using a 1-week rebalance, the average annual return has been 54.7%, beating the market by 9.2 x the returns.

The best part about these strategies (aside from the returns) is that all of the testing and hard work has already been done. There’s no guesswork involved. Just point and click and start getting into better stocks on your very next trade.

Where to Start 

With stocks poised for a historic move, there's a simple way to add a big performance advantage for your stock-picking success. It's called the Zacks Method for Trading: Home Study Course.

With this fun, interactive online program, you can master the Zacks Rank in your own home and at your own pace. You don’t have to attend a single class or seminar.

Zacks Method for Trading covers the investment ideas I just shared and guides you to better trading step by step, plus so much more.

You'll quickly see how to get the most out of the proven system that has more than doubled the market for over three decades. Discover what kind of trader you are, how to find stocks with the highest probability of success, and how to trade them so you can consistently beat the market no matter where stock prices are headed.

You’ll get the formulas behind our top-performing strategies suited for a variety of different trading styles.

The best of these strategies produced gains up to +122.2%, +153.0%, and even +156.8% from 2017 through Q2 2020.¹

The course will also help you create and test your own stock-picking strategies.

Today is the perfect time to get in. I'm giving participants free hardbound copies of my book, Finding #1 Stocks, a $49.95 value. Its 300 pages unfold virtually every trading secret I’ve learned over the last 25 years to beat the market.

Please note: Copies of the book are limited and your opportunity to get one free ends midnight Saturday, November 21, unless we run out of books first. If you're interested, I encourage you to check this out now.

Find out more about Zacks Home Study Course >>

Thanks and good trading,

Kevin

Zacks Executive VP Kevin Matras is responsible for all our trading and investing services. He developed many of our most powerful market-beating strategies and directs the Zacks Method for Trading: Home Study Course.

¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position.

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