Undeniable Price Action (Don’t be Fooled)
Hey, Ross here! Today’s chart shows the US High Yield Index Option-Adjusted Spread, which basically tells us how much extra return investors need to take on riskier junk bonds compared to safe US Treasuries. Right now, the spread is the lowest it’s been all year, meaning risk appetite is actually at its highest. Despite what you may hear, the market is more willing to take on risk than it seems. I break it all down in today’s Insight of the Day.
The Truth About the Market’s Risk Appetite
Hey, Ross here! Today’s chart shows the US High Yield Index Option-Adjusted Spread, which basically tells us how much extra return investors need to take on riskier junk bonds compared to safe US Treasuries. Right now, the spread is the lowest it’s been all year, meaning risk appetite is actually at its highest. Despite what you may hear, the market is more willing to take on risk than it seems. I break it all down in today’s Insight of the Day.
This is Better Than Just Buying Pullbacks
Hey, Ross here! Let’s take a look at the performance of all S&P 500 sectors from the start of 2024 through last week. The standout? Utilities, with a 28.5% YTD return. The weakest? Energy, at 9.3% YTD. The gap between them is 19.2%—about the total return of the S&P 500 so far this year. That’s the kind of edge you can find by focusing on the right sectors. I break it down in today’s Insight of the Day.
Are We Seeing Cracks in Market Sentiment?
Hey, Ross here! This week’s AAII sentiment survey shows a sharp rise in bearish sentiment, with more investors turning cautious as tensions in the Middle East and election concerns grow. While overall sentiment remains strong, the cracks are starting to show. But here’s the thing – these rising fears can actually present opportunities. In today’s Insight, I explain why this shift might be good news for those paying attention. Don’t miss it!
Where Will the Market be One Year from Now?
Hey, Ross here! Today’s chart shows the S&P 500’s price target based on the combined one-year target prices of all 500 companies in the index. If each company hits its median target, the S&P 500 would be over 9% higher at 6,288. Interestingly, this method has often underestimated the market’s strength. A similar calculation last year predicted a lower result than what actually happened. This reinforces what I’ve been saying – the bull market still has room to run.
Bull Market Turbulence Ahead?
Hey, Ross here! Today’s chart shows the S&P 500’s aggregate quarterly performance since 1950, with the fourth quarter averaging a 4.3% return – more than double the other quarters. Historically, the index ends higher 80% of the time, just like we saw last year when November and December were the strongest months. So even if October brings some weakness, stay in the game. I explain why below.
Is This the Easiest Time to Beat the Market?
Hey, Ross here! This chart might look complicated, but here’s the key takeaway: while the S&P 500 posted a 5.4% return for the third quarter, 328 individual stocks in the index outperformed, averaging a 9.2% return. That means we’re seeing broad participation in this bull market. As I explain below, this could be one of the easiest times to beat the index. Don’t miss your chance.
The Market Has Defied September Headwinds
Hey, Ross here! Historically, September tends to deliver negative returns for the S&P 500. But this year, it’s bucking the trend, with four new all-time highs already. And when September sees fresh highs, October and the rest of the year often follow with strong gains. If you’ve been tracking this newsletter, you’re likely already in the game. But if not, I explain the best way to capitalize on this bull market surge today. Don’t miss out!
Unexpected Effect of the Fed’s Rate Cut
Hey, Ross here!
Last Wednesday, the Fed slashed rates by 0.50%, yet the 10-year Treasury yield shot up and has been rising almost every day since. Stocks are also climbing, despite typically moving opposite to Treasury yields. What’s driving this? I believe it’s the market’s expectation of a “soft landing.” Later today at 11 a.m. ET, I’m hosting a masterclass where I’ll show you how to profit from this market sentiment by following corporate insiders into their own stocks. Click here to save your spot and learn the strategy that’s delivered a 1,900% compounded return.
Is the Bull Market Narrowing?
Hey, Ross here!
Right now, the percentage of stocks trading above their 50-day moving averages is still strong, but recent movements show a potential downward trend, even as the market pushes higher. This could be a sign the bull market is narrowing. Tomorrow at 11 a.m. ET, I’m going live to reveal my top strategy for targeting stocks using insider trading data. I’ll show you how to follow corporate insiders and capitalize on their knowledge. Don’t miss it—click here to save your spot for the masterclass. See you there!
Recent Comments