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Is Now The Time To Get Aggressive?

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When investors ask me if now is the time to get aggressive, I always say the same thing. It depends. It depends on how soon you will need your invested dollars. It depends on how comfortable you are with taking on extra risk.  

It depends on a lot of factors. But let’s say that you have a portion of your portfolio that is already dedicated to growth or higher risk assets…when is the right time to step on the gas and become aggressive?

The short answer is right now, during what’s turning out to be the longest and most profitable bull market in history. And I’m expecting a lot more upside to go.

As the editor of Home Run Investor, I am constantly on the search for aggressive growth stocks.  We tend to focus on small caps that show big potential. Let’s take a closer look at why now is the time to be a little more aggressive with your stock selection.

Leading Indicators 

Understanding the leading indicators can really put your mind at ease should you shift more of your assets to a more aggressive stance. Paying close attention to interest rates is by far the biggest single factor that controls the movement of all money. As rates move lower, stocks tend to move higher. That was evident this past Wednesday with the S&P making another new all-time high after the Fed lowered interest rates for the third time this year.

Another important indicator that I track is job growth. The unemployment rate was 5% back in October of 2016 and has dropped down to 3.6% all while adding millions of jobs. In fact, unemployment is near record lows – 50-year lows to be exact. This simply puts more cash in the hands of consumers.

Lower rates and more people earning more dollars means more spending. Throw on top of that consumer confidence near record highs, strong GDP and household income at its highest level in 20 years and you have a formula that will lead to higher corporate sales and earnings.

One problem with tracking the leading indicators isn’t nearly just being able to separate the wheat from the chaff, it's knowing which indicators really matter to the stocks that have the biggest growth potential.

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A unique "home run" portfolio is now the buzz at Zacks, recently closing gains such as +58.0% and +83.7%. And since its 2011 inception, it has scored more than 100 double and triple-digit gains.1

Its long-term strategy blends aggressive growth principles with timely Zacks Rank predictive power to limit risk.

Note: Special opportunity ends this Sunday, November 3 and a new stock buy is targeted for Monday.

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Hot Money, Hot Moves

Keeping part of your portfolio in an aggressive position is good, but now is the time to be positioned for what could be a historic move higher. In Home Run Investor, I have been cutting more conservative plays and reaching for the more aggressive style stocks.

I like the strategy of following the hot money into and out of the sectors that pique investors’ interest out of nowhere. Sometimes it can be chip stocks that light it up, other times it might be shippers or even donuts. The hot money is always searching for the next best thing.  

The market is poised to break out to new highs and aggressive growth stocks will be leading the way. Don’t be spooked by new highs, either. Because history has shown that stocks making new highs have a tendency to make even higher highs. In fact, studies have shown that stocks typically go up in the subsequent six months following new all-time highs. Combine that with strong earnings and the outlook is bullish for many sectors. The hot money is going to go after the hottest of names which makes now the time to get more aggressive!

Making the Right Preparations to Profit

One great way to get started is to check out my Zacks Home Run Investor service.

We focus on small and mid-cap growth stocks with great Zacks Ranks. That means they are among the stocks most likely to outperform in the months ahead. And I'm constantly scanning important news events to understand how they'll impact the market.

The portfolio has generated impressive results. We've recently closed gains such as +58.0% and +83.7%. Since its 2011 inception, Home Run Investor has scored more than 100 double and triple-digit gains.1

And after the market opens Monday, November 4, I am preparing to add a stock with the same kind of explosive upside. This Zacks Rank #2 Buy just posted a great beat and raise, and 52% sales growth in the last quarter. Cybersecurity names that beat and raise often see excellent follow through in the next quarter and I fully expect this stock to grow rapidly on its way to becoming a double, even triple-digit winner.

Here's one more reason to look into Home Run Investor right away. You may download our just-released Special Report, 7 Best Stocks for the Next 30 Days, free of charge. Of the current list of Zacks Rank #1 Strong Buys, our experts predict that these 7 will break out the soonest. These short-term trades balance out the longer-term home run picks.

Don't miss out. Your chance to download the free report ends midnight Sunday, November 3.

Check out Home Run Investor and 7 Best Stocks Now >>

Good Investing,

Brian Bolan

Brian is our aggressive growth stock expert with a reputation for double and triple-digit gains. He is the editor of the Zacks Home Run Investor.

¹ The results for the companies listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors.

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