By Matt McCallJul 16, 2019
Every day I scan through hundreds (if not thousands) of charts — and there’s one I feel is imperative to share with you today.
In fact, this data caught my eye so strongly that I sent it to my CEO, Brian Hunt, in the middle of the night!
The next day we had lunch and Brian told me that he moved over $350,000 into the stock market after looking at the chart I sent. Naturally I laughed and assumed he was joking. But, he wasn’t.
This is a man who has lived and breathed the stock market for the last 20 years. This is not some amateur investor who is new to the game. I found it fascinating that this one chart was enough to motivate Brian to push a large sum of money into the market. But then again, I should not be surprised because I also have been busy buying stocks since that chart popped up on my screen!
My research is broader than many analysts. If you’re familiar with my methods, you know I love to travel and put my boots on the ground for face-to-face conversations with company leaders, industry experts, consumers, suppliers or anything else that gives me an edge. I also subscribe to multiple data services so I can sift through the numbers in search of the next great investment opportunity — and this particular one comes to us from LPL Financial:
It shows every time since 1980 that the Federal Reserve (Fed) cut interest rates when the S&P 500 was within 2% of an all-time high.
That’s the situation we’re likely to be in soon. And historically, this has occurred 17 times in 39 years. In all 17 instances, the S&P 500 was higher one year later. Even more impressive was the average gain of 15% in the year after the Fed cut rates.
If you are not yet sold after seeing that chart, here is another…
Fundstrat looked at instances when the Fed cut interest rates during an expansionary period for the U.S. economy, going back to 1971. Every single time, the market was higher three, six, nine, and 12 months later. And the returns were impressive:
One year later, the average gain was 16.5%. A 16.5% return from today would push the S&P 500 above 3,500!
For context, the average 12-month return for the S&P over the last 50 years is about 8%. So, in this particular situation of a rate cut near market highs, we see nearly twice the average returns.
I’ll be covering this phenomenon in my investment services… but this is so important that I decided to go ahead and share it with you now. If there is ever a time to be in the stock market – it is now!
Another thing to keep in mind is that the S&P 500 is already sitting near an all-time high — and the rate cut is highly likely to happen soon. According to the Federal Reserve Bank of Atlanta, the probability of a 25 basis point rate cut by mid-September is 95.6%. Both Citigroup and JPMorgan are predicting a 25 basis point rate cut here in July — and Morgan Stanley and UBS are going even further. They expect a rate cut of 50 basis points in July.
Now, while a one-year gain of 16.5% is impressive for the S&P 500… I believe that if this historical trend holds, then certain investment themes will greatly outperform:
The emergence of 5G. The introduction of self-driving vehicles, powered by next-generation batteries. The continuation of one of the biggest investment opportunities of a generation — cannabis. Don’t forget about the Internet of Things (IoT), artificial intelligence, and gene therapy, as well.
These high-growth megatrends are set to continue their dominance — and the winners will see gains several times more than the overall market.
Every investor needs to know what stocks in these megatrends to buy for long-term wealth creation. And they need to know it TODAY.
So, I’m excited to present you with a special offer to receive ALL of my research and stock picks, for life. This “package deal” was meant for my paying subscribers — but I was able to convince my CEO to allow me to offer it here in MoneyWire, too.
Yes, this is the same CEO who recently moved over $350,000 into stocks. Brian and I both feel that all of our readers deserve the same opportunity.
If you want in on the action, I invite you to click here to learn how you can get all of my services and more at a significant discount.
In closing, I’ve got to warn you — they’re ending this offer tonight. Go ahead and check it out, and I look forward to working with you during this exciting time.
P.S. This special offer includes all new projects in the future, and I’m testing one right now that may have the biggest immediate impact on your wealth yet!
It’s a little-known way to tap into the cannabis market’s massive growth and collect giant streams of income.
I’m talking about a technique that allows us to collect check after check, thanks to some of the fastest-growing cannabis companies on the planet.
These aren’t tiny, boring dividends. These are big checks, and you can collect them essentially whenever you want! You’ll be shocked at how easy it is.
This is the final piece to my cannabis investing research. And it’s just ONE of the opportunities we’re positioning ourselves in through my investment services. But, again, this is the last day of this special offer. I’m excited to fill you in when you click here.
The car as we know it is on the verge of a transformative change not seen since Karl Benz invented it nearly 135 years ago. In fact, the whole transportation sector is now poised for its version of 2.0.
I’m not exaggerating when I say this will lead to trillions of dollars in money sloshing around in the coming decades. What is coming will create one of the five biggest investment opportunities you’ll ever see in your life, no matter when you were born. Learn more here.
Marijuana has been outlawed most everywhere for decades… but now a wave of legalization is starting to sweep the world. This will create massive new markets and massive stock market winners. Learn more here.
The next big breakthrough in battery technology is an innovation that will have multi-trillion-dollar economic implications. I can tell you this mega innovation isn’t a matter of “if,” it’s a matter of “when,” and I believe it will go down as one of the greatest inventions of the 21st century.
Those on the right side of this innovation stand to build incredible wealth… just like people did from the creation of the internet and the smartphone. Think of this as your “field guide” for profiting from the next big battery breakthrough. Learn more here.
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