I’m an honest guy, so I’m going start this issue by being extremely blunt. Our tech stocks are on fire right now.

Specifically, while some investors are freaking out about the Russo-Ukrainian War or soaring gas prices, the model portfolio in our flagship investment research advisory Innovation Investor is up about 20% in just three short trading days!

Yep, you read that right. In this ugly market, our entire portfolio of disruptive tech stocks has rattled off a ~20% gain in only three days.

But that’s unimportant because that’s what has already happened. I’m writing you today to tell you what will happen — because, frankly, what’s yet to come is so much more exciting.

While our portfolio has seen such an impressive spike, we think this is just beginning of an enormous multi-year breakout for disruptive tech stocks. Indeed, as we’ve been preaching to our subscribers over the past few days, we’re internally focused on our newly minted “5X5 Plan,” wherein we’re targeting gains of 5X across our whole portfolio over the next 5 years.

A bold goal, sure. But based on what we’re seeing in the markets these days, it’s entirely achievable.

In fact, something happened yesterday in tech stocks — an amazing, exceptionally rare phenomenon. And it’s making us more bullish than ever on tech stocks today.

Here’s what I’m talking about.

Did Tech Stocks Just Bottom?

These stocks have been falling all year long. The tech-heavy Nasdaq entered a bear market not long ago — (a bear market is generally defined by a drawdown of 20% from recent highs). So here’s what we’re all wondering: When will tech stocks bottom?

Well, you can’t time a bottom. And you don’t always know one when it hits. It may have already happened.

Did you notice that the price action on tech stocks has significantly improved over the past few days? On Tuesday, the Nasdaq jumped 2.9%. The next day, it rose 3.8%. And it popped another 1.3% yesterday.

Those are some big gains.

But what you may have missed is why that price action is so meaningful. Considering this: The Nasdaq has now rattled off three consecutive days of 1%-plus. Over three days, the total gain just exceeded 7%. Remember; that’s all while trying to climb out of a correction/bear market.

We’ve only witnessed such bullish price action three times over the past 20 years.

The first time was in August 2002, when tech stocks were still reeling from the dot-com boom and bust. Then, this three-day mega-rally happened. Two months later, tech stocks bottomed. And 12 months after that, they were up more than 25%.

It also happened in January 2009. At the time, tech stocks were crashing, thanks to the Great Financial Crisis. But just two months after this three-day rally, tech stocks bottomed from that huge collapse. And over the next 12 months, they soared more than 40%.

And it happened again in October 2011, when tech stocks were down more than 18% because of the European debt crisis. Shortly after this three-day mega-rally, tech stocks bottomed. And they proceeded to pop 25% over the following 12 months.

History Repeats Itself

In other words, the price action we’re seeing in tech stocks right now is rare. And each time it’s happened in the past, tech stocks were either at or very close to a bottom. And they proceeded to rally 20%-plus over the next 12 months.

Past performance is no indicator of future results. But history does tend to repeat itself.

We think that’s exactly what’s happening right now. The price action strongly implies that tech stocks are in the bottoming process and bracing for a huge rally over the next 12 months.

So… are you ready to buy the dip in tech stocks yet?

The Fundamentals Look Great

Beyond the price action, we are cautiously optimistic that the fundamentals support the notion that a new hypergrowth tech stock bull market is close to emerging.

We feel this way for a few reasons.

First, the big, scary Federal Reserve rate hike decision is in the rear-view mirror. You have to understand that markets can handle these increases. During the past 12 rate-hike cycles since the 1970s, stocks have averaged 10% gains per year. Historically, stocks do just fine during times like these.

What stocks cannot handle is uncertainty. And before this week, there was a ton of ambiguity surrounding the Fed’s forward policy path. Now all that has settled. Investors can now benchmark valuations to this newfound certainty. And because prior doubt created fears in long-duration assets, this benchmarking is producing valuation multiple expansion for hypergrowth tech stocks.

We think the worst is over of Fed fears driving stocks lower.

Second, the war in Europe appears to be a well-understood risk now. Tensions between Russia and Ukraine are reaching a breaking point, as Russia claims diplomacy talks are not making progress. That’s contrary to what Ukraine has reported. This war is now a few weeks in, though. And the markets already understand its risks and have priced stocks accordingly.

Of course, it is likely another shoe drops — and very soon. When it does, equities will likely reverse course. But the magnitude of the drop — depending on how much is associated with the Russo-Ukrainian crisis — will be mitigated by investors who have priced most of these risks into equities.

We think the war in Europe will continue to create volatility for markets and inflation. But we don’t see it — barring a nuclear war or full-on European invasion by Russia — pushing stocks 10% or more lower.

A Setup for Tech Stocks to Roar

Third, China appears committed to averting a repeat of 2020. There were fears over the past few days that, amid the country reinstituting lockdowns due to Covid-19 spread, Chinese manufacturing capacity would significantly slow over the next few months and further strain an already crunched supply chain. But President Xi said this new round of lockdowns should not and will not significantly hamper economic activity or the personal lives of Chinese citizens.

In other words, China’s manufacturing capacity will likely remain healthy and normal throughout 2022, even in the event the country continues to abide by a zero-Covid policy. And that obviously is a positive development on the inflation front.

Overall, then, the fundamental outlook for hypergrowth tech stocks appears to be meaningfully improving. Coupling this with the recent price action, we’re starting to get really bullish on tech stocks at current levels.

Beat the Boom in Tech Stocks

Tech stocks got crushed in early 2022. But technology platforms, products and services continue to reshape every facet of our personal and professional lives. It was only a matter of time, then, before the tech stock crash turned into a generational buying opportunity.

And that time has arrived.

With its portfolio up ~20% in just a few days, our Innovation Investor research advisory is already benefitting from the tech rebound in a big way.

But the best is yet to come.

We’re targeting 5X gains over the next five years. And while you might think that’s an ambitious target, our quantitative models suggest that it’s actually conservative.

Indeed, we think many of the stocks in our portfolio will rise by 10X, 15X and even 20X over the next several years.

The time to buy those high-upside stocks is now. The big rebound is just getting started.

Learn more about the incoming tech stock boom. And for FREE, I’ll even give you the name, ticker symbol and key business details of one of the stocks we believe could soar more than 20X.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.