Hot Start to 2023 Is a Surefire Sign a Stock Boom Is Brewing

  • Over the first five days of 2023, the S&P 500 has rallied as much as 2%.
  • Since 1935, there have been 23 instances when the stock market started the year off with a 2%-plus gain within the first five trading days. In 22 of those 23 years, stocks finished the full year higher, with an average return of nearly 20%.
  • Also since 1935, there have been nine years where stocks rallied more than 2% over the year’s first five trading days after falling in the previous year. In every one of them, stocks finished the year higher, with an average return of almost 25%.
stock boom - Hot Start to 2023 Is a Surefire Sign a Stock Boom Is Brewing

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After a rough 2022, the stock market is off to an unusually hot start in 2023. The data shows that a stock boom is coming. And the rest of this year could bring fortunes to correctly positioned investors.  

We’re only about a week into the new year. Over the first five days, the S&P 500 has rallied as much as 2%. That’s an excellent start to the year. 

Sure, it’s only been a few days. But there’s a saying on Wall Street: as goes January, so goes the rest of the year. 

That saying rings especially true when stocks get off to a red-hot start like they have in 2023. 

Since 1935, there have been 23 instances when the stock market started the year off with a 2% or greater gain within the first five trading days. 

In 22 of those 23 years, stocks finished the full year higher, with an average return of nearly 20%.

In other words, based on how strongly stocks have performed at the start of the year, history says there’s a 95% chance stocks rally nearly 20% in 2023!

Of course, that’s great news for investors. 

But wait. Things get even better… 

The Makings of a Stock Boom

As we all know, 2023 isn’t just any normal year for the market. That’s because 2022 was an awful year for stocks. 

So, let’s filter these results even more and only look at years that started off great after having a bad year

That is, let’s look at years where stocks rallied more than 2% over the year’s first five trading days after falling in the previous year. 

Since 1935, there have been nine such years. In every one of them, stocks finished the year higher. Average return? Almost 25%. 

A table highlighting the occurrences and forward returns of instances when the S&P 500 was up more than 2% in the year's first five trading days

So…

History actually says there is a 100% accurate precedent for stocks to soar more than 20% in 2023. 

Pretty crazy, right? I thought so, too. And that’s why I’ve been telling investors to back up the truck. 

The Final Word

About once a decade, the stock market gives prescient investors the opportunity to buy the dip in a bear market before it explodes into a new bull market. This is an opportunity for investors to make fortunes and put their retirement goals on hyperdrive. 

That opportunity has arrived. And it probably won’t knock again until the 2030s. 

Take advantage of it – while it lasts… 

To do just that, I’ve put together a portfolio of the best stocks for you to be buying right now. These are stocks that I predict could be among the market’s biggest winners in 2023 as a new bull market marches into town. 

Remember: The last time a bear market turned into a bull market was in 2020, and more than 15 stocks rose 1,000% in that year alone.

I believe that, once again, over a dozen stocks will soar more than 1,000% in 2023 amid a bear-to-bull-market transition.

Do you own one of them? Better yet, do you own multiple of them? 

That’s my goal – to recommend multiple picks that soar 1,000%-plus this year alone with the incoming stock boom. 

I believe this portfolio of stocks gives the opportunity to do just that.

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


Article printed from InvestorPlace Media, https://investorplace.com/hypergrowthinvesting/2023/01/hot-start-to-2023-is-a-surefire-sign-a-stock-boom-is-brewing/.

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