Halleliuah! In my three decades of following the markets, I’ve never seen a bigger turnaround for investors!
Tuesday’s 391-point rise was almost unbelievable! That is, of course, if you haven’t been listening to what I’ve been saying all along–earnings rule. Forget about everything else and focus on what really moves Wall Street…earnings momentum! And that’s why now is the perfect time to prepare your portfolio for the second-quarter surge!
Christmas in April!
While many investors are worrying about the economy, I’m acting like a little kid on Christmas morning!
Why? Here are four good reasons:
The dollar is staging a comeback. Thanks to the Fed’s rate cuts and other actions, the dollar continues to get stronger against the euro, not only pushing crude oil prices near $100 a barrel, but also driving gold prices down below $900 an ounce!
Secondly, investors opened the 2nd quarter with good news on the manufacturering front and optimistic that all of those nasty write-downs that the financial sector had to take are finally starting to fade to black.
Manufacturing also rose last quarter–from a reading of 48.3 to 48.6. While that’s not a huge jump, it provided enough economic hope for institutional investors on Wall Street to start singing “Here Comes Santa Claus” this week!
And with UBS getting $12 billion off its back, its shares jumped an astounding 12%–signaling to investors that the financial Armageddon is finally over! Not to mention that all of the write-downs squeezed excess risk right out of the market and created some historic buying opportunities!
Am I saying we’re completely out of the woods? Not just yet… but we’ve reached a clearing and can see daylight! So, here’s what to do now.
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It’s All About Earnings
For the past 12 months, I’ve been telling my Blue Chip Growth readers (and frankly, anyone else who would listen) about the dangers of the subprime mortgage market, and why earnings growth is the key factor that separates the men from the boys… the rich from the poor… the have’s from the have-not’s…
Investing in financially solid companies whose earnings are accelerating like a burning log in the middle of winter is going to reap the most rewards. Investors who continue to ignore this basic golden rule of investing could find the stocks they invest in a better place to lose a fortune than to make one.
Blue Chips to Buy Before It’s Too Late!
As first-quarter earnings are announced, I expect that the stock market will rotate out of financials and homebuilders, which have been leading the overall stock market during the short-covering rallies, and refocus its energy on stocks that have the best sales and earnings, just like the stock leaders on our Blue Chip Growth Buy List!
Our stocks are clearly benefiting from quarter-end surges as institutional investors strived to make their portfolios look pretty in advance of first-quarter earnings season!
Just take a look:
…Mosaic (MOS) up 125% since October 2007
…Potash (POT) up 128% since June of 2007
…Transocean (RIG) up 36% since September of 2007
…Vimpel (VIP) up 56% since June of 2007
And there are a ton of other winners I could mention, including Apple (AAPL) (up 18% in the last 30 days alone) that have shot up, while most investors barely broke even!
Tuesday’s 391 point gain in the market was just the beginning. The positive earnings surprises ahead will dramatically increase the profits on our Blue Chip Growth Buy List.
Add any of my top recommendations to your own portfolio today and you could easily find yourself 35% to 50% richer by Christmas–all thanks to rising earnings!
At Blue Chip Growth, we stake our reputation on every investment we make and will return your money if we fail to meet your expectations. Our goal is to hand our readers 35% to 50% gains every 12 months. It’s a vow I’ve kept for more than two decades. When the numbers say to sell, we’ll do it quickly–profit or loss. We never fall in love with stocks nor do we stick with losers. This is how we’ve beaten the S&P 500 3-to-1 over the past 10 years. With nearly 80% of our current holdings winners, and our average gain 46%, we’re clearly well on our way to meet our 2008 annual goal, proving again that our investment in research continues to pay off for our readers! Sign up today!
