Last week I mentioned that September 30 is the drop-dead date to be fully invested before the market really resumes its uptrend through the end of the year. Now is a great time to buy because history has shown the market tends to pull back around this time during midterm election years. Then, the market only goes up from there, and a few reasons account for that.
First, five weeks after September 30, we have Election Day on November 4. Midterm elections have a notoriously low turnout, which means that if we have gridlock in Washington now, we’ll likely have gridlock after midterm elections. As frustrating as gridlock is for many of us, it is a positive for the market. Wall Street typically likes gridlock because it allows business to go on as usual without sudden and unexpected changes from regulators.
In mid-October, we’ll see the third-quarter reports. Judging from the upward analyst earnings revisions following Q2 earnings season, this will be another one for the record books. Afterwards, the rest of the year will be full of the general optimism that comes hand-in-hand with the holiday season.
So, if you’re really looking to take profits on any of your current positions, you’ll want to make sure that you’re only selling stocks that have become more volatile of late. You can do this at any time using my Portfolio Grader tool, and to get you started here’s a list of 21 big-name blue-chip stocks, including Eni (E), General Motors (GM), Bank of America (BAC) and UBS (UBS), that should be sold right away:
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
