Investor Spotlight

Sunday, November 10, 2019

You SNOOZE ... You LOOSE

"The majority of the leading stocks are usually in leading industries. Studies show that 37% of a stock's price movement is directly tied to the performance of the industry group the stock is in."

By William J. 0'Neil (Founder of Investors Business Daily)

While some traders are glued to the financial news tv networks listening to all the doom and gloom in the market, all sorts of stocks in different industries are breaking out and reaching all time highs. We have been experiencing a broad based rally in the market in the last several weeks now. This ought to be a wake up call to all of us not to listen to all the noise in the market. Stock charts ultimately tells us a story of what the market is really doing. The leading Growth Stock Index $QQQ as well as the broad market stock index $SPY is attaining all time high now and is heading higher. Currently, here is what the performance of both these indexes are:

$SPY ... + 23.62% year to date
$QQQ ... + 30.45% year to date

There is so much chatter in the media that we are over 10 years in this bull market and it could end very badly any day. We are constantly bombarded with news of brexit or inverted yield curve or tariff wars and the risk of Iran and North Korea acquiring nuclear weapons. Most retail traders are nervous with one foot already out the door.

Utter Nonsense !

Here is the actual data though. We are in reality possibly heading into another cycle of bullish trend for the next 8 to 9 years. We saw this happen with a 19 year rally from 1953 to 1975 (caused by the consumption demand of the Bob Hope generation born in 1920's to 1930's). We also had an 18 year rally from 1981 to 2000 (caused by the consumption demand of the baby boomers born after the the end of the 2nd world war in 1945). There are over 100 million millenials that are going to be reaching their peak earning years in the next 10 years. They will be the ones responsible for buying homes, cars, investing in their retirement funds and setting up college funds for their kids.

Here is what the data shows with the performance of the two indexes since the market went on to rally 3 years ago, right after election on Nov 8th "Follow Thru" day:

$SPY ... + 43% (broad market rally)
$QQQ ... + 71% (growth stock rally)

This includes the bear market correction we had of almost -19% for the 3 months of October to December 2018. This is phenomenal. You can double your portfolio within 3 years by merely investing in the leading Growth Stock index $QQQ.

Mentoring Program

Question you should all be asking of yourself is:

Is your portfolio mirroring the performance of $QQQ?

If you have a hedge fund or a mutual fund managing your portfolio and you are paying them a fee for it, have they outperformed the $QQQ in the last 3 years?

Chances are, they have probably underperformed for you. If you have been managing your own portfolio, chances are you too have been underperforming the leading growth stock index $QQQ.

How long will you continue to do what you are doing and not take advantage of beefing up your portfolio during this market rally that we are experiencing?

Take action now and commit to enrolling in our "Mentoring Program". I shall open a few slots for anyone that wants to commit to learning our system. Its a very busy season for the next 3 months and we could possibly add another +10% to the $QQQ from where it is today.