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Remember last year’s “Sell in May” period, when U.S. stocks amazingly defied the seasonal odds to finish up 10% in the traditional six-month selling period?
Some analysts, including yours truly, wondered aloud whether that summer run-up was an aberration. Now last year’s offseason rally is looking rather modest.
In the five weeks since the beginning of May, the S&P 500 is up 3% – ahead of last year’s “Sell in May” pace. The index closed the week at yet another all-time high, and is fast approaching once-unthinkable levels above 2,000. This rally is so powerful that it’s, for the second straight year, bucking long-held trends of the summer being a dead period for the stock market.
Given that backdrop, it’s tempting to think that this rally may never end. It’s equally tempting to assume a massive correction is just around the corner. It all depends on whether you’re a bull or a bear, I suppose.
Really, the best thing you as an investor can do is not guess. That was the premise of our Andy Crowder’s article, “19 Reasons Why Wall Street Analysts Need to Stop Guessing” this week. Time and again, Wall Street pundits have gotten it wrong over the past year, repeatedly declaring a pullback to be imminent. Each time, stocks have risen higher still.
But it would be equally foolish to declare with any certainty that stocks are headed to 2,100, 2,200 or higher. The probabilities aren’t in favor of such a move, as Andy eloquently illustrates.
Here’s what other Wall Street myths – and truths – we’ve uncovered at Wyatt Investment Research in a busy first week of June.
Cash Machines: Top 5 Stocks with 6% Yields – For investors looking for something better than subpar dividends and just “okay” stock performance, we have done the heavy lifting. We have found the top five stocks with 6% yields.
Watch this Key Metric of U.S. Oil Production– The key metric to watch is the reserve replenishment ratios – a measure that compares how much oil a producer added to its proven reserve base to how much oil it produced during the year.
19 Reasons Why Wall Street Analysts Need to Stop Guessing– JP Morgan’s Chief Equity Strategist Tom Lee has been adamant about the investment banks price target of $2,075 for the S&P 500 by year end. What does the option market say about the probability of his stance?
The One Company You’ve Never Heard of — But Smartphones Couldn’t Exist Without-Four months from now Apple will be releasing the most technologically advanced phone on the planet. While we love Apple (it’s in our 100k Portfolio) we’re recommending a much less known company today. A company that provides the technology, without which smartphones couldn’t exist. It’s the company reaping massive profits each time a new Apple (or Samsung) smartphone is activated. Click here for the full story.
Why This Income Stock Might Be the Best Value in the Market– I consider myself a deep-value contrarian investor. Therefore, my world is somewhat topsy-turvy: What most investors consider bad news I consider good, and vice versa.
Five Ways Apple Got its Mojo Back– A year ago, Apple (Nasdaq: AAPL) looked like a decaying stock. Fast forward to this morning and Apple stock is officially back. The stock opened above $630 a share, 60% higher than its nadir last June. How did Apple stock recover so quickly? Let me count the ways.
Live Options Event — Make 10% a Month: A Step-by-Step Formula-This Thursday, Andy Crowder is hosting another one of his highly popular options webinars. The summer is traditionally the worst six months for individual investors. But not anymore. Because Andy will be revealing his easy, step-by-step process for using high-probability trades to consistently make 10% on your money — each and every month. Plus, you’ll receive free, actionable trades that you can execute immediately. Click here to RSVP and secure your seat!
Put Options: The One Strategy the Income Crowd is Missing– I’d like to discuss one simple way to guarantee that you buy at exactly the low price of your own choosing – and…even better… how you can get paid to do so.
What’s Up with the Bond Market?– Stocks may have hit all-time highs last week but there is some unsettling action going on outside the scope of equities. And this is in the bond market.
VIDEO: The Only Way to Make Money in Gold Right Now– Gold prices have been plummeting for close to two years. And there’s no telling when the yellow metal’s fortunes will turn around. Here’s how you can make money on gold even if prices continue to stagnate.
VIDEO: Donald Sterling vs. The Stock Market– Like it or not, Donald Sterling is going to make a whole lot of money off his forced sale of the Los Angeles Clippers. But if you go by the team’s actual value rather than Steve Ballmer’s outlandish $2 billion bid, Sterling would have earned a better return – and perhaps saved himself from becoming the most hated man in America — by simply investing in stocks 33 years ago.
Thanks for making us part of your weekend. Throughout the week, please make sure to visit WyattResearch.com for the information you need to know and opinions you need to read to become a better investor.