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Three-Decade Market Veterans Tell Crowd to "Buy Everything"By
Tuesday, February 14, 2012
"Basically everything is in a new bull market right now," my longtime friends Mary Anne and Pamela Aden said (in so many words) at the World MoneyShow in Orlando this past weekend. "It's time to buy."
According to their website, the Aden sisters have delivered double-digit profits for their readers in 21 of the last 25 years.
This is even more remarkable when you know that the Adens are not big risk takers.
In typical fashion for the Aden sisters, they didn't "shout" their message at the conference... Instead, they delivered it in their measured way. As they've done for decades, they simply let their proven number-crunching tell them what to do...
Right now, their number crunching says to buy everything.
"We're increasing our stock allocation," they told the crowd of 1,000-plus, many of whom are "perma-bears" when it comes to stocks.
Why would they want to buy stocks now? "Sentiment drives markets," the Adens said... "Investors have chosen to focus on the good news for now, even though the fundamental reality has not changed."
While there's plenty of bad news out there, the Adens gave the crowd a good reminder that "bull markets always begin when things are bleak."
The Adens think for themselves... After all, they recommend buying Treasury bonds, too.
I'd say 100% of attendees and speakers disagree with the idea of buying U.S. government bonds. Meanwhile, Treasurys were actually the best-performing major asset class last year, up 26%. "The bull market remains intact," the Adens said. "It's OK to buy now, with caution, and buy on any upcoming weakness."
I was surprised to hear they think Treasurys are attractive now. So I checked... And sure enough, according to SentimenTrader, sentiment on Treasury bonds is the worst it's been in nearly a year. Based on the numbers alone, I can see why the Adens are buying. (I just don't think I could step up and buy Treasurys myself!)
The Adens are bullish on stocks, bonds, gold, and natural resources. The only major thing they are not bullish on is the U.S. dollar.
I like the Aden sisters. They're good people. They're methodical analysts, with decades of experience. And they're not afraid to speak their minds – even when 100% of the people they're talking to disagree with them.
I don't always agree with them, either. But I certainly respect their opinions. (That's why I had to check out Treasurys for myself.)
If you haven't done so before, you ought to check out the Aden sisters at www.AdenForecast.com.
Good investing,
Steve
Further Reading:
"Sometimes, you can't help but make money..." Steve wrote back in October. "Throw a dart at a list of stocks and commodities, buy what the dart lands on, and you'll double your money in two years." According to the Aden sisters, the "buy everything" moment is happening right now. Read more here.
While the long-term outlook is bullish, short-term traders should exercise caution. On Saturday, master trader Jeff Clark shared four signs we could see a quick drop in stocks.
Market NotesIT AIN'T PRETTY, BUT IT WORKS! In our Valentine's Day edition, we check in with a long-term strategy we love here at DailyWealth... selling the basics.
Regular readers know that when it comes to investing in high-growth emerging markets like Brazil, India, and China, we're drawn to "the basics" approach of owning dominant global companies that sell things like soda, beer, and cigarettes to these markets. "Boring" products like these enjoy steady demand... and there's scant risk that a new technology will make having a beer after work obsolete. Plus, well-run companies in these industries generate huge cash flows and big dividends.
One of our favorite "basics" leaders is Philip Morris International (PM). We've highlighted the stock many times over the years. A longtime recommendation of our colleague Dan Ferris, PM is the international offshoot of U.S. cigarette powerhouse Altria, which makes it the largest international vendor of cigarettes in the world... and a direct play on the world's growing middle class, much of which is in Asia. Dan's readers are earning a dividend yield of approximately 6% on their original purchase price.
As you can see from today's chart, "selling the basics" is still worth highlighting. Philip Morris has returned investors 42% in the past year... sports one of the "cleanest" uptrends in the market... and just broke out to a new 52-week high. We state again: Selling the basics ain't sexy... but it works.
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