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Money Flooded Into Stocks Last Week – Here's What to Do

By Dr. Steve Sjuggerud
Tuesday, October 24, 2017

U.S. equity funds just attracted their largest inflows in 18 weeks.
 
As Reuters reported on Friday, $7.5 billion flowed into stock funds last week alone. Where did individual investors put all this money?
 
"Tech stocks attracted a bumper $1 billion, the largest inflows in 38 weeks," the article stated.
 
My friend, this is more evidence that the "Melt Up" is FINALLY 100% here... the market's last big push higher.
 
Individual investors are FINALLY buying stocks. And they're not looking for the "safe" plays. They're buying tech. They're taking on risk. This is what happens in the late stages of a bull market.
 
But what took people so long to buy, I wonder?
 
The stock market bottomed in March of 2009. It's been going up – almost nonstop – for eight and a half years.
 
You would think that – at some point – people would have gotten seriously interested in buying stocks. But they hadn't, yet.
 
So what changed last week?
 
What changed is "everything's just perfect" now, according to my friend Jason Goepfert of SentimenTrader.com.
 
How does he define perfection?
 
•  
The market closed at a record daily high every day last week.
 
•  
It has closed at a record weekly high every week for the last six weeks.
 
•   It has closed at a record monthly high every month for the last seven months.

"That combination has never been seen before in market history," Jason says.
 
Here's the thing: Markets fluctuate.
 
Sounds simple, I know. But markets go up... And markets go down.
 
We've had five record days... six record weeks... and seven record months. After that record run, you might start to believe that markets don't go down. But they do...
 
So I want you to be prepared for a market correction.
 
Don't get me wrong... I'm not going back on my prediction that stocks will absolutely soar in the Melt Up.
 
My "working script" is simple. I believe we'll see two things here...
 
•  
Some degree of market correction, first. Then...
 
•   Crazy new highs, after that.

Remember: Markets fluctuate. Markets go up... And they go down.
 
When this market goes down – and it will – that move will scare people...
 
Everyone on CNBC will start saying, "This is the end." Your friends (who just got on board buying tech stocks this week) will likely sell.
 
You will stand alone... But you will know what's going on. You will not panic. You will stay strong.
 
You will remember that markets fluctuate. They go up... And they go down. And you will take advantage of it.
 
I suggest using the upcoming down move in the markets as one final opportunity to buy the stocks you want – before the big final push higher in the Melt Up.
 
I can't know when that day will arrive. But I am certain it is coming. And I don't want you to be scared by it. Instead, I want you to take advantage of it...
 
Good investing,
 
Steve




Further Reading:

Steve says U.S. stocks will absolutely soar during the Melt Up. But he believes one group of stocks is set up to do even better in the next four years. The last time this happened, it was a great time to own both... Read more here: This Group of Stocks Could Crush the U.S., Even During the 'Melt Up.'
 
"You can offer up a lot of excuses for why you're not invested," Steve says. "But don't tell me, 'I already missed out on the Melt Up.' That excuse is no good with me." Learn why the final push is only just kicking off right here: You STILL Haven't Missed the 'Melt Up' Yet!

Market Notes


'BORING' INVESTMENTS BRING IN THE BUCKS

Today, we'll show you why you want to own "boring" businesses in your portfolio...
 
Longtime readers know that high-tech or revolutionary products don't guarantee a successful business. "Boring" products are often the cornerstones of steady, profitable companies that generate good cash flows for investors. Last week, we checked in on this idea with pest-control provider Rollins (ROL). Today, we're seeing it again with a food and uniform supplier...
 
Aramark (ARMK) is one of the country's largest food and uniform providers. The company serves more than 500 million meals a year to schools and universities across America. It also provides meals and uniforms to thousands of hospitals, sports stadiums, and correctional facilities. This business model may be "boring" – but it's stable. The company forecasts a strong finish to this year, expecting $425 million in free cash flow.
 
Investors are up nearly 65% over the past three years, and shares just hit a fresh multiyear high last week. Feeding and clothing America may not be glamorous, but it's consistent and profitable...
 

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