Many investors had a terrible time in 2022, with stocks stuck in a bear market for the majority of the year. The good news is the bulls are now back in control.
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Now, my InvestorPlace colleague Luke Lango also sees a massive bullish run forming in a specific corner of the market. Luke doesn’t want anyone to miss out on what could generate massive returns in the market without the risk, so he’s decided to host a 10X Shockwave Summit to talk about it.
This event will take place on Thursday, April 27, at 4 p.m. Eastern time. If you haven’t signed up yet, you can do so by clicking here.
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Ahead of the event, Luke wrote an interesting article on the market technicals that point to signs of a new bull market that I want to share with you today. You can read it below.
The biggest misunderstanding on Wall Street is that fortunes are made during raging bull markets.
They aren’t – fortunes are made in bear markets.
Specifically, fortunes are made in the months when bear markets suddenly and dramatically turn into new bull markets.
History says the S&P 500 rises about 10% every year. In a really good year, the market will pop 20%.
But in the months when bear markets turn into bull markets, those gains get injected with steroids.
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The Data Doesn’t Lie
In the so-called raging bull market of 2019, for example, the S&P 500 rose about 25% over the course of a year. Nice return, sure.
But when the COVID-19 crash turned into a new bull market in March 2020, the S&P 500 rose more than 60% over the next five months! That’s about 2.5X the return in less than half the time.
In the three years of raging bull market leading up to the Great Financial Crisis, the S&P 500 rose about 40%. Again, a nice return.
But, when the GFC ended and turned into a new bull market in March 2009, the S&P 500 popped about 80% over the next year. That’s double the return in one-third the time.
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Even in the last two years of the biggest raging bull market ever – the dot-com boom of the late 1990s – the S&P 500 still only rose about 25%.
But, when the dot-com crash bottomed and turned into a new bull market in late 2002, the S&P 500 rose about 50% over the next year and change. That’s double the return in half the time.
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You get the point…
But bear markets only come around once every five to six years. That means bear-to-bull transitions only come around once every five to six years, too.
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When they do come around, you owe it yourself to capitalize on them. These transitions give investors the opportunity to earn a decade’s worth of gains in a matter of months.
And that brings us to today.
With inflation crashing, layoff announcements piling up, and banks failing, the Fed will be forced to pause its rate-hike campaign within the next few months, most likely before June.
Historically speaking, whenever the Fed pauses a rate-hike cycle, stocks soar!
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Not to mention, every single technical buying indicator has flashed over the past few months. We got the Golden Cross trigger. We got the Breakaway Momentum thrust. We got the Whaley Breadth thrust. The Triple 70 thrust. Back-to-back quarters of positive returns in the S&P 500. So on and so forth.
All of these are technical signs of a new bull market.
Perhaps most important, the tech-heavy Nasdaq just soared into a technical new bull market by rallying more than 20% off its December lows.
The Final Word
If it looks like a duck, walks like a duck, and quacks like a duck… then, it’s probably a duck.
This, folks, is likely the start of a new bull market.
Consequently, we are now presented with a generational money-making opportunity.
But it’s only going to make money for those who capitalize on it.
That’s exactly what we’re doing today.
This Thursday afternoon, after the markets close, we are going to unveil an ultra-rare stock market phenomenon we discovered that can help you max out your gains when bear markets turn into bull markets.
It’s a phenomenon that truly harnesses the power to potentially turn thousands of dollars… into millions of dollars.
It only appears about once a decade, and right now, it is appearing for the first time in 15 years.
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On Thursday afternoon, you can find out how to leverage this phenomenon to supercharge your portfolio right now.