Hey, Ross here:
Welcome to a brand-new trading week.
Let’s start off with a chart showing what the professionals actually managing billions of dollars think about the economy (instead of what the fear mongering clickbait media thinks).
Chart of the Day
The chart above comes from Bank of America’s survey of global fund managers.
And it shows that – despite the doom-mongering you most often hear about in the mainstream media – over 60% of them believe that the “dream” economic soft landing scenario can be achieved.
In other words, they believe that inflation can be brought down under control without driving the economy into a recession.
I believe that’s the most likely scenario as well (despite the Fed’s incompetence).
So, try not to let yourself be too affected by all the fear being pushed in the media now that the market is pulling back…
It won’t do you any good and will actually cause you to miss opportunities.
Insight of the Day
Pullbacks reveal which stocks have the most strength.
Stocks closed negative last week, ending a multi-week winning streak.
The culprit, naturally, was Jerome Powell – the sworn enemy of anybody who likes money. He opened his big mouth before Congress last week, stating that inflation would continue to be a problem and there would likely be two additional rate hikes this year.
Investors were not excited. Stocks, especially high P/E growth names, pulled back on the news.
But as I’ve said, pullbacks are natural. They happen in every bull market. Stocks never go straight up.
And if you know what to look for, they can make you money.
You see, pullbacks (dips, retracements, down weeks, whatever you want to call them) reveal which stocks have the most strength.
The strongest names will often resist the decline and hold up near their highs while the rest of the market falls. They will also recover very quickly.
This is a sign that demand is strong for that stock and investors are taking advantage of the short-term pullback and buying shares.
I have a complete strategy for spotting when the big investors are buying the pullbacks – allowing us to get in with them and ride the potential surge to the top.
And for a limited time only, you can get this strategy for just 99 cents by clicking here.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
