Hey, Ross here:
The market has bounced hard off the lows, and is now back at all-time highs.
With the major indexes recovering so quickly, a lot of traders are starting to assume the opportunity has already passed.
But here’s what they’re missing.
Because while prices have indeed recovered sharply…
The market’s valuation reset has not fully reversed.
Today’s chart explains more.
Chart of the Day
Take a look at this chart.
It shows the S&P 500’s forward P/E ratio – in plain English, how much investors are willing to pay today for the index’s expected earnings over the next 12 months.
Since the start of the Iran conflict, it fell as much as 18%.
And although it has bounced over the past few days – it’s still well below pre-Iran war levels (even as the market sits at new all-time highs).
In other words, the market has recovered…
But investors still are not paying quite as rich a multiple for those future earnings as they were before the selloff.
At the same time, forward earnings growth is high – and only getting higher.
I explain the full implications – and the opportunity it creates – below.
Insight of the Day
A rebound in valuation multiples is a key driver that most traders are under-appreciating.
On one hand, the market is back at new highs.
On the other hand, investors are still assigning a lower multiple to those earnings than they were before the conflict began.
The rebound in price has happened…
But the full rebound in valuation has not – despite accelerating earnings.
This valuation rebound will likely be a key driver for the market’s next big move up.
But the real opportunity lies in the individual stocks…
The ones that can benefit from both forces at once:
Strong underlying earnings…
Plus a market that becomes willing to pay a richer multiple for those earnings again.
That’s when you get the kind of outsized moves that catch most traders off guard.
And one of the best clues to sniff out these kinds of moves can come from the people closest to the business.
Because if insiders are buying while valuations are still depressed…
They may be telling you the market is still underestimating what’s coming.
After all, who knows better what’s coming down the pipeline than the ones running the company themselves?
That’s exactly what I’ll be breaking down in today’s LIVE webinar happening in just a few hours at 11 a.m. Eastern today.
I’ll walk you through my proven strategy for following the highest-potential insider trades…
The ones with the potential to deliver explosive gains as the market rerates their stocks.
I’ll reveal:
- Where to find them before everyone else catches on…
- How to separate the real signals from the junk…
- And what specific insider buying patterns can point to some of the market’s biggest opportunities.
The insider walkthrough is free, but seats are limited.
So click here to lock in your spot if you haven’t yet…
And I’ll see you in just a bit at 11 a.m. ET.
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
“Ross Givens & Traders Agency have helped me learn & identify market patterns with analysis as to WHEN and how to properly enter and exit trades, with profit!
It’s been 6 months so far, and the education has been excellent, with the profitable trades following!”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
