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The Weekend Edition is pulled from the daily Stansberry Digest. The Digest comes free with a subscription to any of our premium products.

Stocks Around the World Are Soaring to New Heights

By Justin Brill
Saturday, January 28, 2017

 "Dow 20,000" is here...
 
After several weeks of unsuccessful attempts, the Dow Jones Industrial Average finally broke above the 20,000 level this week.
 
As you can see in the chart below, the index of 30 of the "bluest" blue-chip stocks closed at a new all-time high on Wednesday... And it moved even higher on Thursday, ending that day at 20,100.91.
 

But this week's breakout wasn't limited to the Dow...
 
The blue-chip S&P 500 Index also closed at a new all-time high... The tech-heavy Nasdaq Composite Index closed at a new high... And even the Wilshire 5000 Index – considered the benchmark of the entire U.S. equity market – jumped to a record high.
 
 Perhaps most notable, the rally hasn't been limited to U.S. stocks alone...
 
The MSCI World Ex-U.S. Index – which tracks stocks across all 23 of the world's developed markets, excluding the United States – broke out to a new 52-week high as well (hat tip to financial blog The Reformed Broker)...
 

As we've discussed, U.S. stocks have been moving higher following Donald Trump's unexpected election victory in November.
 
But the chart of the MSCI World Ex-U.S. Index shows that stocks around the world are moving higher, too. And it suggests the recent rally has been driven by fundamental changes in the global economy, rather than the election alone.
 
 Contrary to conventional wisdom, our colleague Steve Sjuggerud says seeing stocks break out to new all-time highs tends to be an incredibly bullish sign...
 
He last explained this idea in November, as all four major U.S. indexes were setting new highs. As he wrote in the November 25 issue of DailyWealth...
 
It was all over the news... "For the first time since 1999, all four major stock indexes hit all-time highs on the same day." I got calls from coworkers, family members, and good friends. They were all worried. "This feels like a bubble," they all said. "Is it time to sell?" NO. It's not...
 
Stocks perform fantastically after hitting new 12-month highs. We crunched the numbers. And the results were amazing.
 
You REALLY want to own stocks after a new 12-month high... And you really DON'T want to buy stocks after a new 12-month low. This table sums it up best. It shows the return 12 months after a new 12-month high or low. Take a look...
 
Since 1928
12-Month Return
% of Time
After 12-month high
7.3%
31%
After 12-month low
2.8%
11%
Not a new high or low
4.4%
57%
All periods
5.1%
100%
S&P 500 compounded annual gains
Based on monthly data, not including dividends

 Steve's call is exactly right so far...
 
The S&P 500 is already up around 4% since he wrote those words. But this is nothing new...
 
We know of no other analyst anywhere – and this means anywhere – who has been as steadfastly bullish (and absolutely correct) about U.S. stocks since the bull market began.
 
Time and again over the past eight years, Steve has told readers, "Don't worry"... "Stay long"... "Stocks are headed higher."
 
If you've been with us for long, you've likely heard this before. But you may be surprised to learn just how prescient some of his calls have been...
 
For example, Steve first turned bullish on U.S. stocks in March 2009, just days after the bear market bottomed... Of course, we didn't know this at the time. Stocks had fallen more than 50% over the previous 18 months, and most investors were panicking.
 
But Steve noticed the economy was quietly moving from "bad" to "less bad." And in the March 20, 2009 DailyWealth, he told readers unequivocally, "You want to own stocks, right now."
 
 In late 2010, after stocks had already rallied 50% off their bear market bottom, Steve remained bullish... In his October 9, 2010 DailyWealth, titled "Why EVERYTHING Is Up and Will Go Higher Still," he told his readers the bull market would continue.
 
In late 2011, after stocks had suffered their first major correction since the financial crisis, Steve again reassured readers the bull market would continue... Writing in the October 10, 2011 DailyWealth, Steve said history suggested that a "major bottom" in stocks was near. Again, he was right... In fact, stocks had already bottomed just days before.
 
As stocks continued higher in 2012 and 2013, Steve reaffirmed his bullish stance time and again.
 
When stocks suffered another correction in late 2014, Steve again called the bottom, nearly to the day. In the October 2, 2014 DailyWealth, Steve urged readers to "stay on board" because the final "innings" of the long bull market were still ahead.
 
And when stocks plunged in the summer and fall of 2015 – when many analysts were calling an end to the long bull market – Steve still remained bullish. As he wrote in the September 10, 2015 DailyWealth...
 
This bull market in stocks is not even close to over yet. Stock prices should have much higher highs ahead, based on the weight of the evidence. Both the short-term picture and the long-term picture are just about perfect for higher highs.

Most recently, when stocks plunged again early last year – and investors were as bearish as they had been in years – he told readers not to worry because stocks were likely to move higher in 2016. As he wrote in the January 14, 2016 DailyWealth...
 
We have some scary things happening right now in the financial markets. But you need to understand one thing: Fear is good...
 
You know the old saying... "Be fearful when others are greedy, and be greedy when others are fearful." (Warren Buffett said that... and Buffett is the greatest investor of all time.) Markets peak when investors are greedy – when nobody thinks you can lose money (like in real estate in 2006). And markets bottom out when fear rules – when everyone is scared.

The S&P 500 then went on to gain more than 18% through year-end.
 
The following chart puts these calls and others in perspective...
 

If you had followed Steve's FREE advice to buy stocks in 2009, and you had simply held on, you would've done incredibly well. The benchmark S&P 500 Index is up nearly 200% over that time. Folks who followed Steve's paid recommendations have done even better.
 
 In short, if you aren't reading Steve's research, you owe it to yourself – and your money – to give it try...
 
Normally, if you subscribed to each of Steve's advisories – True Wealth, True Wealth Systems, and True Wealth China Opportunities – you'd pay upwards of thousands of dollars per YEAR.
 
But for just the next few days, you can claim LIFETIME access to all of Steve's best advice and recommendations – as well as the best advice and recommendations from Porter, Dr. David "Doc" Eifrig, and the rest of the Stanberry Research team – for a fraction of the normal subscription costs... with our new Stansberry Portfolio Solutions.
 
Stansberry Portfolio Solutions is hands down the simplest, most convenient, and most affordable way to access our research that we've ever offered...
 
You'll not only get our best recommendations... you'll also get our best advice on how to "put it all together" to create a diversified portfolio. For the first time ever, it will make following our recommendations completely foolproof...
 
No more having to sort through dozens of e-mails each month... No more having to read through stacks of research... No more having to choose which of our recommendations you like best... And no more having to figure out how to incorporate those recommendations into a properly diversified portfolio. We'll do all the work for you.
 
Of course, if you actually enjoy reading our research, you'll still have that option, too...
 
In fact, for many of our readers, Stansberry Portfolio Solutions will give you access to even more of our research than ever before... including our brand-new Stansberry Newswire service, which will offer around-the-clock coverage of the world's financial markets, with updates available (if you desire) in real time.
 
It's completely up to you... With Stansberry Portfolio Solutions, you'll be able to choose exactly how much – or how little – of our research you want to see each month.
 
Best of all, you can try Stansberry Portfolio Solutions risk-free for a full 30 days. If it isn't right for you or you aren't 100% satisfied, we'll refund your payment in full. And if you're already a loyal subscriber, you could qualify for a significant discount off the normal cost of membership.
 
You can get all the details by clicking here... Or simply call our dedicated Member Services team at (800) 667-4214 during our regular business hours – Monday through Friday, 9 a.m. to 5 p.m. Eastern time – to learn more. You can also book a time to speak with them right here.
 
Regards,
 
Justin Brill
 
Editor's note: Stansberry Portfolio Solutions was designed with one goal in mind: to take all the guesswork out of safe, profitable investing... so you can finally "get there" and reach your financial goals. With Stansberry Portfolio Solutions, following our recommendations will be easier, faster, and cheaper than ever before. Click here to see for yourself.





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