Hey, Ross here:
To be successful in the market, you have to be able to hold seemingly opposing pieces of data in your head at the same time.
Today, let’s look at two of them.
Chart of the Day
This is the first piece of data…
A chart showing how the earnings growth rate for S&P 500 companies have shifted over the past 3 months.
At the end of June, analysts were estimating a 7.3% earnings growth rate for the latest quarter.
At the end of October, they were estimating a 10.7% earnings growth rate – almost 50% higher.
This is a great sign for the markets, because earnings are a fundamental pillar of stock prices.
Earnings growth supports stock market growth.
Anyway, that’s the first piece of data I was mentioning. Here’s the second:
This is the forward Price-to-Earnings ratio of the S&P 500.
As of the end of October, this ratio is now sitting at the highest levels since the Dot-Com bubble.
This isn’t good news for the market.
So, earnings are growing…
But earnings multiples – aka valuations – are also at multi-decade highs.
How do we reconcile the two?
I explain below.
Insight of the Day
Focus on single stocks instead of broad indexes
If you’re a “buy and hold” index investor, there is real cause for concern.
Valuations have spiked to Dot-Com bubble levels – despite strong earnings growth.
If history is any guide, they won’t be able to just keep rising.
Now, let me be clear…
I’m not calling for a crash.
But I am saying that, if you’re relying on broad indexes to power your portfolio returns…
You’re taking on a lot of risk.
Instead, I recommend focusing on trading single stocks instead.
Stocks in which there’s plenty of upside remaining – from both an earnings and valuations perspective.
Now, if you’ve followed me for any amount of time, this advice won’t be a surprise.
But I believe that it’s more applicable now than any time in the past few years.
That’s why tomorrow, Friday November 7, at 11 a.m. Eastern…
I’m going LIVE to show you how to “de-risk” your stock picks…
By following the best group of traders in the world – the corporate insiders…
High-level execs like CEOs and CFOs openly buying their own company stock, thanks to an SEC loophole.
Imagine being a top-level executive who knows that a big deal is coming down the pipe for your company…
And you’re legally allowed to buy your own company stock before that happens.
How much risk are you really taking here?
That’s the edge these insiders have…
And I’ve developed an entire strategy for following them.
In my live presentation tomorrow, I’ll show you:
- Where to find insider trades before they hit the news
- How to identify the “real” high-conviction buys vs. fake ones
- The 3 insider buying signals that have predicted triple-digit winners
Basically everything you need to start using this strategy for yourself.
So click here to secure your seat for my live insider presentation Friday…
And I’ll see you Friday morning at 11 a.m. ET sharp.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
iOS: https://apps.apple.com/us/app/goto/id1465614785
Android: https://play.google.com/store/search?q=goto&c=apps
Customer Story of the Day
“I joined both the War Room and the Stealth trades programs a little over 6 months ago.
I honestly do have to say that I have learned more in these last 6 months about chart patterns, insider buying, how to follow the money, pullbacks, analytics, chart/price indicators, when to buy, when to sell, how to look for quality stocks and just really developing/having a much better and clearer look and understanding about the market than I have learned in the past 2 yrs of my trading career trying to learn myself or with other so called market trading mentors and that are not.
Ross Givens is genuinely a master when it comes to the market and is genuinely here to really help his students succeed, profit and learn.
AND YOU WILL!!!!.. If you watch, study, learn and show up to every amazing war room/ trader’s agency webinars/classes. Which are so incredibly beneficiary and valuable just in itself.
I started trading in my individual IRA 6 months ago with $3700 and it is worth $6900 today. I’m up $3200 profit about 187% return on my IRA from when I first started by taking and using what I’ve learned and continue to learn from within the Traders Agency.
Nothing but respect for Ross and his team at TA. They are 100000000000% the REAL DEAL and
I cannot thank them enough for the results I am seeing now with my trading. Solely due to the TA teaching strategies, webinars and all the very in-depth knowledge Ross and his team has to offer. RG and TA will change your life.”
Ross Givens
Editor, Stock Surge Daily
