Investing isn’t hard. But it’s still easy to mess up…
With most activities, the harder you work, the more you think, and the more actions you take… the better the outcome. You can draw a direct line between hard work and success.
Investing is the opposite.
The best investors tend to do less. They don’t panic over the problems of the day. Instead, they stay grounded and disciplined.
In investing, the less action, the better. And that’s certainly true right now, in the middle of a powerful bull market.
The trend is up. Stocks just finished one of their best six-month periods ever…
And according to history, we can expect another double-digit gain over the next year.
Let me explain…
Never Fight a Bull Market
It’s never wise to fight a bull market. When prices are rising, that tends to continue.
The best thing to do when times are good… is nothing at all.
That’s a tough pill to swallow. But it’s important to remember today.
You see, the S&P 500 Index just finished an incredible six-month stretch. It soared 36% from its early April bottom to early October. Take a look…
This has been a rally for the record books. Since 1950, we’ve only seen five larger unique six-month rallies.
When stocks rise this high, this fast, it’s easy to doubt the run-up. Times seem a little too good. So investors begin looking for reasons to sell.
That instinct makes investing so easy to get wrong…
While it might seem prudent to get out while stocks are winning, history shows that’s a big mistake. Instead, you want to keep buying at times like this.
Here’s what has happened after similar setups since 1950…
Your gut says, “Sell when stocks are high.” The data says otherwise.
Since 1950, the S&P 500 has risen 8.2% per year. That’s an incredible feat. But you can do even better in powerful bull markets like today’s.
Similar setups led to 6.2% gains in three months, 6.7% gains in six months, and 14.2% gains over a year. Plus, the market was higher a year later 100% of the time.
This shows the power of the trend… and why you should approach investing in a more “hands-off” way than you probably think.
The fact is, we’re in a strong bull market. That’s a good thing. And it means we expect more upside from here. Stay long.
Good investing,
Brett Eversole
NEW THIS WEEK: Huge Energy Discovery In Utah [sponsor]The Department of Energy say it could power America for millions of years. And both grizzled oilmen and clean energy supporters love it: Energy Secretary Chris Wright called it "an awesome resource," while Warren Buffett, Jeff Bezos, Mark Zuckerberg, and Bill Gates are all directly invested. Here's the name of the company at the heart of it all.
Source: Daily Wealth
