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Exactly Where We Are in My Bull Market "Script"

By Dr. Steve Sjuggerud
Tuesday, September 3, 2013

I don't know about you... but none of my friends are talking about stocks yet...
 
I don't mean my friends in the investment business. I mean if my wife and I went out to a party, nobody there would be talking about stocks.
 
In 1999, stocks were soaring and everyone was talking about it. In 2006, in Florida (where I live), everyone was "in real estate."
 
Today? People haven't gone crazy for stocks. That tells me we are nowhere near the top in this stock-market rally.
 
Before this great bull market is over, people will have "stock fever." It just hasn't happened yet. That means there's much more upside potential for us.
 
Earlier this year, I laid out a rough "script" for how I expect the bull market to play out...
 
The basic idea is that Mom and Pop America are about to migrate from ultra-low-interest investments (like cash and bonds) and into stocks.
 
That "Great Migration" will happen in three stages...
 
We're already deep into Act I of our script... At this stage, I said Mom and Pop would buy safe, blue-chip stocks... the kind of companies that pay big and growing dividends... as a way to get better returns than zero percent in the bank.
 
It's already happening. Big, safe, blue-chip health stocks are soaring. Take a look...
 
 
With such solid profits, Mom and Pop are getting bolder. They're starting to take on more risk. Their next stop – Act II – will be "Big Tech"...
 
And lately, these Act II tech stocks are beating the Act I health care stocks...
 
 
Google, for example, is not far from making a new all-time high. The company is up 75% in just two years. The same is true for Microsoft... The software giant reached a multiyear high in July. Even Apple is soaring higher after its spectacular fall.
 
The best part is, these Act II opportunities have plenty of room to run from here. You see, the largest technology companies are still dirt-cheap. Take a look...
 
Company
Fwd P/E
Dividend Yield
Apple
11.5
2.4%
Microsoft
11
2.6%
IBM
9.9
2.0%
Cisco
10.2
2.8%
Average
11.7
2.6%
S&P 500 13.4 2.1%

Tech companies are trading at a big discount to the overall stock market. And these businesses – which most people don't consider dividend-payers – pay hefty yields right now.
 
Act II of our stock market "script" is now just a few months old. Big Tech stocks are cheap... they are outperforming health care for the first time in years. Now is the time to buy.
 
Good investing,
 
Steve




Further Reading:

"Don't worry if you haven't bought stocks yet," Steve writes. "You haven't missed it." But he suggests getting on it now… while U.S. stocks are still an incredible opportunity. Learn more here: Why I Believe Stocks Should Rise 1,000 Points by 2015.
 
If you're profiting in this bull market – and wondering when is the best time to capture your gains – Steve says there's One Simple Thing You Can Do To Dramatically Increase Your Returns. "I can't overestimate the power of this one idea in making money," he writes. "Go with me on this..."

Market Notes


NEW HIGHS OF NOTE LAST WEEK
 
Zillow (Z)... online real estate info
Cigna (CI)… insurance
Humana (HUM)… insurance
FedEx (FDX)… shipping
Chesapeake Energy (CHK)… oil and gas
Kodiak Oil and Gas (KOG)… oil and gas
U.S. Oil Fund (USO)… oil fund
Halliburton (HAL)… oil services
Tesco (TESO)… oil services
Lockheed Martin (LMT)… "offense" contractor
Tesla Motors (TSLA)… electric cars
Harley-Davidson (HOG)… motorcycles
Dollar General (DG)… discount retailer
Best Buy (BBY)… electronics retailer
Take-Two Interactive (TTWO)… video games
Skechers (SKX)… shoes
Under Armour (UA)… "sporting" products
Facebook (FB)… social networking
Netflix (NFLX)… movie rentals
Wendy's (WEN)… fast food
Green Mountain Coffee (GMCR)… coffee
Tiffany (TIF)… jewelry
Chiquita Brands (CQB)… bananas
Krispy Kreme Doughnuts (KKD)… doughnuts
Wynn Resorts (WYNN)… casinos
MGM Resorts (MGM)… casinos
Lions Gate Entertainment (LFG)… movie studio
 
NEW LOWS OF NOTE LAST WEEK
 
IBM (IBM)… blue-chip tech giant
Aeropostale (ARO)… clothing
J.C. Penney (JCP)... struggling retailer
D.R. Horton (DHI)... homebuilder
iShares Malaysia (EWM)… Malaysian stocks
iShares Singapore (EWS)… Singaporean stocks
Indonesia Fund (IF)… Indonesian stocks
PowerShares India (PIN)… Indian stocks
Turkey Fund (TKF)… Turkish stocks

premium teaser

An Act II Opportunity Dave Eifrig Approves of... 
 
Dave is onboard with my interest in big technology stocks. His Retirement Millionaire portfolio currently holds a handful of these businesses...
 

In The Daily Crux



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