Well, the first week of trading in May is in the books… so what did you do?
There is an investing adage that you probably have heard:
“Sell in May and go away.”
Besides being a clever little rhyme, the adage would have been good advice during some periods in history. Even today, the six-month period between November and April tends to be the strongest for stocks.
But go to cash for the next six months?
Especially right now when we stand on the threshold of both an economic and stock market boom.
Heck, my friend Louis Navellier and I aren’t just holding on to stocks. We just reloaded an entire portfolio…
The idea of selling your stocks just because the calendar says May 1 — or any date for that matter — doesn’t make sense logically. Sure, there are seasonal patterns in the market, but they should not be your primary investing strategy.
Plus… it just doesn’t work the way it used to.
Think back to last year. By the end of April, the S&P 500 had bounced an incredible 30% from its March 23 low. If you had sold at that point, you would have missed another 12% run in the market — and more in many stocks — over the following six months.
That’s more than an entire year on average.
What’s more, as you tried to invest again in November, you would have paid more than what you sold for in May.
Ryan Detrick at LPL Financial put out some great information. His data shows that the S&P 500 has averaged 3.8% gains from May to October over the last 10 years… and was positive nine times out of 10.
You get the picture. Selling in May doesn’t make sense as a general rule.
And it really doesn’t make sense this year.
That’s why Louis and I just reloaded our Power Portfolio for the coming 12 months. (We’re about to close it to new members, so you can find out more here for only a few more days.)
We did sell once already, but it had nothing to do with the calendar and everything to do with locking in big gains. Our first portfolio that we introduced in December soared a tremendous 38.5% in less than two months. We sold because it was smart to take profits that most investors would be ecstatic with over an entire year.
But when everything points to an economic and investing boom in the year ahead, we knew we had to take advantage.
I hope you do, too. And that’s my biggest plea to investors…
Now is the time to be invested in stocks, not selling and going away.
COVID-19 vaccines are being widely distributed. Restrictions are being relaxed. We are all ready to get out and live our lives again. And the government is shelling out more in stimulus.
In short, we have an economy that is reopening and primed for recovery.
Louis and I are in complete agreement that 2021 has all the makings of a big year in the market. We believe we’re about to witness one of the biggest stock booms in U.S. history… and that carefully selected, high-quality stocks can go up 300%, 500%, and even 1,000% over the next few years.
The last time we saw something similar was in the early ’90s. It was also a time of low inflation and incredible innovation.
The rollouts of cellular phone networks and powerful personal computers and the advent of software and the internet converged to unleash a tsunami of productivity. In a relatively short timeframe, our ability to communicate, transact, process data, analyze data, and manage supply chains was revolutionized.
The massive productivity increases from the new technologies of the 1990s were like a huge shot of adrenaline to the economy. And they paved the way for truly innovative companies harnessing these new technologies to hand their shareholders incredible returns. Companies like Cisco (NASDAQ:CSCO) went up 113,000%.
A very similar story is unfolding now. We’re about to see several once-in-a-generation technologies come together at the same time and totally reshape every aspect of our lives –artificial intelligence, 5G, precision medicine, the Internet of Things, driverless cars, the blockchain, and more.
And the impact these technologies will have on the global economy will dwarf the internet.
Louis agrees. His systems haven’t flashed these types of bullish readings since the early 1990s… before the market went on a 1,400% tear. That decade created some of the biggest winners in stock market history.
And here’s another reason we both believe the rest of 2021 and into 2022 will be one of the greatest years to be an investor…
Businesses and consumers are sitting on record amounts of money with plenty of pent-up demand to spend it. This flood of cash and economic activity will be a massive boost for the economy… and the market.
Many sectors should do very well, but if you really want to have a great year… and have the chance to make an absolute fortune… focus on the corners of the market that will see the lion’s share of the growth.
That’s what we did as we reloaded the portfolio. We analyzed more than 5,000 stocks, and we believe the select few that made it through could be among the best performing stocks for the next 12 months.
It is an incredibly exciting time to invest. With a return to normal now in sight, a technological and economic boom is set to kick off in a meaningful way. That’s why we believe 2021 will be one of the greatest years to be an investor.
And it’s why smart investors need to be in the best hypergrowth stocks for the coming 12 months.
On the date of publication, neither Matt McCall nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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