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With the Dow Jones industrials and S&P 500 plunging, everyone wants to know what’s next for stocks.
That’s why I’m hosting an URGENT market briefing. Just click here ASAP for access – it’s FREE.
The Dow’s 1,175 drop on Monday sparked memories of Black Monday 1987. That’s when the Dow dropped 508 points in a single day.
However, it’s important to put this in context. Yesterday’s decline was 4.6%, versus a 22.6% drop on Black Monday.
The rapid and sharp decline is good for headlines. But let’s put the decline in context:
The S&P 500 has simply given up the gains from the month of January. That means the market is trading at the same levels that we saw in late December.
Volatility and Market Rebound
Stock market volatility has clearly picked up in the last week. And that’s creating a unique trading situation.
Go here to protect your wealth – and profit – from the “new stock market.” The old “BUY & HOLD” strategy is unlikely to deliver steady gains in the near-term.
It’s important to realize that this recent decline is NOT due to economic concerns. Instead, it’s being sparked by a healthy economy.
Unemployment is low, economic growth is strong, and wages are increasing. And that’s got market observers predicting that the Fed will raise interest rates.
Since the risks of a U.S. recession remain very low, it’s likely that this market correction will be temporary.
The Super Bowl Indicator
On Sunday night, the Philadelphia Eagles upset the New England Patriots to win the Super Bowl.
That one game could predict a good year for U.S. stocks.
The Super Bowl Indicator finds that a win by a NFC team (the Eagles) predicts gains for stocks. Meanwhile, had an AFC team (the Patriots) won, it would have indicated losses in the coming year.
When an NFC team wins, the average gain for the S&P 500 is 10.8%. That compares with a 5.8% gain for years when an AFC team wins the big game.
Additionally, the S&P 500 posts gains 81.5% of the time when a NFC team wins.
If history is any indication, the Eagle Super Bowl win suggests that stocks will in fact rebound this year.
In the near term, you’ve got to be prepared for increased market volatility.
Either you can sit on the sidelines and hope for the best . . . or you can use PRO-level strategies to protect your wealth and earn more income – as others suffer.
Yesterday, one little-known strategy was posting gains of 116%, even while the Dow Jones plunged 1,175 points.
Go here now to protect your wealth – and start trading like a PRO.