Customer Service 1 (888) 261-2693
Please enter Search keyword. Advanced Search
Home About Us Resources Archive Free Reports Market Window

Stocks Could Soar 14% in the Next Year

By Brett Eversole and Rick Crawford, True Wealth Systems
Tuesday, November 17, 2015

Higher stock prices equal higher stock prices...
 
You might not believe it, but it's true... Based on history, when stocks go up, they tend to keep going up. Let us give you one example... that tells us stocks could dramatically outperform over the next 12 months...
 
The stock market (as measured by the S&P 500 Index) soared in October. It had its best month in four years. Based on history, stocks could soar an additional 14% over the next 12 months.
 
Here's exactly why...
 
The S&P 500 increased 8.3% – not including dividends – in October. That's the largest one-month gain we've seen in four years... since October 2011.
 
Back in October 2011, we were also coming out of a stock market correction, like we are today. And back then, we saw big gains in U.S. stocks after a big gain in the month of October.
 
This was not a one-time occurrence... History shows us that big ANNUAL gains are the norm after a big MONTHLY gain in the stock market.
 
We looked all the way back to 1950 to find the market's largest one-month gains. This October ranks as the 22nd-largest monthly return since then. The table below shows forward returns after all these large monthly gains. Take a look...
 
Return
3-Month Return
6-Month Return
1-Year Return
2-Year Return
After Extreme
4.0%
9.1%
13.7%
23.6%
Typical
2.1%
4.3%
8.8%
18.0%

Buying after big one-month gains – you might be surprised to learn – is an outperforming strategy.
 
It doubles the typical three- and six-month return of stocks. And history says we can expect 14% gains over the next 12 months... nearly five percentage points more than a typical year for stocks.
 
Importantly, these numbers have been even better than the historical averages during this bull market. Take a look at the numbers for this bull market after we saw great one-month returns...
 
Date
3-Month Return
6-Month Return
1-Year Return
2-Year Return
3/31/09
15.2%
32.5%
46.6%
66.2%
4/30/09
13.1%
18.7%
36.0%
56.2%
9/30/10
10.2%
16.2%
-0.9%
26.2%
10/31/11
4.7%
11.5%
12.7%
40.2%
Average
10.8%
19.7%
23.6%
47.2%

These are serious returns. The average 24% one-year return we've seen since this bull market began in 2009 crushes the previous table's one-year return of almost 14%.
 
Sure, we're likely in the later innings of this bull market. So we can't expect 20%-plus annual gains from here. But history shows that higher stock prices equal higher stock prices. And remember, bigger gains than anyone can imagine are possible in The Melt Up.
 
Stocks soared in October, and history tells us we could see 14% gains over the next year as a result. The bull market is back. And this is one more reason why it's still time to own U.S. stocks.
 
Good investing,
 
Brett Eversole and Rick Crawford




Further Reading:

Over the last couple of months, Steve has shown readers multiple reasons to be invested in U.S. stocks today. Learn more right here:
 
"Stocks could absolutely soar over the next 18 months, as we come out of the extreme of fear in August."
 
"Over a year, these extremes led to an increase of more than four percentage points. That's serious outperformance!"
 
"This seven-year high in short interest is just one example of why I feel very strongly that there's still significant upside potential ahead of us in stocks..."

Market Notes


CAPITAL EFFICIENCY: INTERNET EDITION

Today's chart showcases the power of owning "capital-efficient" businesses...
 
Over the years, Stansberry Research founder Porter Stansberry has written dozens of essays on why you should focus on capital-efficient businesses. These are companies that return a large amount of their profits to shareholders without requiring much capital to maintain operations.
 
You can see this concept at work with VeriSign (VRSN). The Internet-infrastructure company is the worldwide leader in providing and registering domain names, including all .com and .net addresses. The company sports thick profit margins and returns most of that revenue to shareholders through share repurchases.
 
As you can see from the chart below, VeriSign has treated shareholders well for a long time now. Shares are up more than 150% over the past four years... and just struck a new 52-week high yesterday. VeriSign is another example of why capital-efficient businesses make great long-term investments...
 

premium teaser

Our leveraged bet on U.S. stocks is a "buy" today...
 
Now is an incredible moment – we have all three things we look for in an ideal trade...
 

Recent Articles
Legal Notices: Stansberry Research LLC (Stansberry Research) is a publishing company and the indicators, strategies, reports, articles and all other features of our products are provided for informational and educational purposes only and should not be construed as personalized investment advice. Our recommendations and analysis are based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.

 

Readers should be aware that trading stocks and all other financial instruments involves risk. Past performance is no guarantee of future results, and we make no representation that any customer will or is likely to achieve similar results.

 

Our testimonials are the words of real subscribers received in real letters, emails, and other feedback who have not been paid for their testimonials. Testimonials are printed under aliases to protect privacy, and edited for length. Their claims have not been independently verified or audited for accuracy. We do not know how much money was risked, what portion of their total portfolio was allocated, or how long they owned the security. We do not claim that the results experienced by such subscribers are typical and you will likely have different results.

 

Any performance results of our recommendations prepared by Stansberry Research are not based on actual trading of securities but are instead based on a hypothetical trading account. Hypothetical performance results have many inherent limitations. Your actual results may vary.

 

Stansberry Research expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. And all Stansberry Research (and affiliated companies), employees, and agents must wait 24 hours after an initial trade recommendation is published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation.

 

© 2024 Stansberry Research, LLC. | Privacy Policy| Customer Service
Stansberry Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This website may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry Research, LLC. 1125 N Charles St. Suite 500, Baltimore MD 21202.