Now that we have that ugly pull-back out of the way, we can focus our attention on what to own moving forward.
The S&P 500 is still negative for the year and yet earnings are strong and economic growth is positive. That means stocks are cheaper than they were at the beginning of the year.
Thomas Lee, Chief Equity Strategist for JPMorgan (JPM), has a 2075 target on the S&P 500. That’s a 13% move from Friday’s closing prices. If indeed that target is reached, there will be some big profits to be had. Some stocks are likely to do even better than the index.
The bears are getting slaughtered, calling for a market downturn that never comes.
While a 13% gain from here pales in comparison to the gains made in 2013, they are still way ahead of other investment classes.
Lee is believes that the bull market is in the middle innings.
Instead of trying to time the market – something that is impossible to do – it is far better to own stocks at cheap prices. Let them appreciate as they are likely to do. Jumping in and out of stocks is a sure-fire way to lose money.
In this market it will pay to be long and strong. So, what should we be buying and holding today?
Here are five stocks to buy that should exceed the major market indexes for the remainder of the year: