By Matt McCallFeb 12, 2020
One year ago – almost to the day – I was interviewed on CNN Business and made a rather bold prediction. I said that the S&P 500 would be up 25% in 2019.
It was especially bold coming out of a tough correction from October into December that dropped stocks 20% from their highs. The CNN reporter interviewing me, Richard Quest, was clearly skeptical. In fact, he bet me dinner on it.
Free dinners taste the best. The S&P 500 did gain 25%. It actually performed even better than that.
So guess what I did today?
No, I didn’t get my dinner. I’m still waiting for that. But I was interviewed once again on CNN Business… and I said the exact same thing as last year – that the S&P 500 will be up 25% or more at some point this year.
I plan to collect on last year’s wager, and we upped the ante for this year’s bet to a steak dinner and a bottle of expensive wine. I plan to collect next year, too, because I’m that confident in my prediction for 2020.
Let me tell you why… and the critical message for investors right now.
I’m bullish for a lot of reasons. Interest rates are low. Inflation is low. Corporate earnings are growing. Stocks are not overvalued. And more.
But the main reason I see such big upside potential is a confluence of so many different technological breakthroughs coming together at the same time.
The rollout of 5G wireless networking will begin this year and unleash a series of new mega-trends that will hit the mainstream.
The Internet of Things (IoT) will continue to expand as a trillion devices will eventually be connected to the internet.
Artificial intelligence (AI) will move from behind the scenes to where we cannot live without it.
The discovery and creation of breakthrough medicines will be powered by AI and genetic data, along with new biotechnology research. In fact, the first drug developed entirely by artificial intelligence has just now started clinical trials.
AI’s effect on healthcare will be transformative… which is why I just added a small AI healthcare company to the Microcap Millionaire Portfolio about an hour ago. More on that shortly.
I told Richard Quest how these technological innovations will create trillions and trillions of dollars in economic value over the coming years.
I also told him how much this year resembles 1990. Stocks were enjoying an eight-year bull market when the 1990s began, and a lot of folks said it was about to end. They couldn’t have been more wrong. That decade ended up being the best 10 years in stock market history.
Penn Financial Group President Matt McCall says he predicts a 24% gain for the S&P 500 in 2020.
— CNN Business (@CNNBusiness) February 12, 2020
I get angry when I think about all the profits people missed out on because they were afraid to buy after the strong run.
And that’s my message to you today, tomorrow, next week, and next year. As we enter the Roaring 2020s, you must be in stocks if you want to grow your wealth.
There will be dips and even full-blown corrections along the way, but the long-term trend is relentlessly higher. There is no better way to grow your wealth, achieve your financial goals, and live the life you want than investing in stocks.
I believe we are looking at a decade of stock returns that will blow people’s minds. And the best way to make big money in the coming years is to invest in smaller companies, especially the best microcap stocks in the market.
Because small companies have such great potential to grow wealth, I believe everyone should have a portion of their portfolio in small stocks before they grow large.
The best-performing stock of the 1990s was a small, little-known computer company at the beginning of the decade, but it grew large over the next 10 years. By the end of 1999, Dell Computer was worth nearly $100 billion, and the stock gained 91,863% during the 1990s. That turns an investment of $5,000 into $4.5 million.
I can also tell you that microcap stocks are where I’ve found the best trades of my career. After accompanying a friend into an Ulta Beauty (ULTA) store, I researched the business and loved what I saw. My Ulta recommendation soared 2,043%!
Stamps.com (STMP) rose a rare a rare 2,772%… and Advanced Micro Devices (AMD) grew 2,235% in its earlier days.
I recently released nine microcap recommendations – stocks with all of the characteristics I look for in small companies with the potential to be big winners. I call it my Microcap Millionaire Portfolio.
And earlier today, I added a 10th stock to the portfolio. It’s a company that incorporates artificial intelligence in treating and detecting cancers. AI will transform healthcare in general, and I see this company’s innovative detection and treatment technologies as game changing.
Because this company is small, it only needs to capture just one half of one percent (0.5%) of the global cancer diagnostics market to see its sales increase 40X over what they are right now.
That’s the kind of math that moves stocks. And those are the kinds of stocks you want to own right now.
P.S. Making big money in microcaps just makes sense when you think about it.
It’s much harder for Apple (AAPL) to go up 10X when it’s valued at $1.4 trillion than it is for a small cap to go from $1 billion to $10 billion.
The new healthcare AI stock I just recommended has a valuation of only $190 million, and it operates in a potentially huge market.
These are the kind of stocks you want to own. My whole system is designed to identify small stocks with the best chances to grow large… and make investors a lot of money in the process.
Click here to find out how you can get instant access to my latest recommendation as well as the other nine stocks in my new Microcap Millionaire Portfolio. Each one is in a high-growth industry that could soar 1,000% or more, and one is already up more than 25% in just a week.
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt discusses Amazon’s (AMZN) ascent to the $1 trillion value milestone. What does its rise tell us about investing and, more importantly, how do we find the next Amazon? Matt also dives into the upside potential of microcap stocks and unveils a new portfolio aimed at the smallest stocks in the market.
You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.
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