Greg Guenthner

For the first time in years, investors are generating positive returns.

Now, we’re just a few weeks away from the January rush back into equities. Your neighbor will soon wise-up to the market’s outsized returns. It’s time for you to beat him to the punchbowl…

While many analysts and financial media reports continue to lean on bubble chatter and taper talk, stocks are entering what is historically the strongest part of the year. With every tick higher, we hear even more protests from investors who have been absolutely crushed since the secular bear market took hold more than a decade ago.

But the market’s landscape is quickly changing before our very eyes…

“The S&P 500′s rolling 10-year returns have recently turned up from a secular low,” says Jason Trennert, founder of Strategas Research Partners . “This trend is supposed to smooth out some of the volatility and offer a big-picture look at the market from a longer time horizon. If anything, this chart shows stocks remain far from bubble territory.”

S&P 500 Rolling Ten-Year Returns

No wonder many pundits have declared the past several years to be the most hated rally in the history of the stock market. By the time the financial crisis hit in 2008, investors had the pleasure of enjoying the worst rolling 10-year returns since the Great Depression. That’s enough to sideline even the most optimistic investor for a long, long time…

Of course, reluctant market-watchers won’t stay on the sidelines forever. When the general public begins to catch on that the market is roaring higher, they’ll want in on the action. Don’t be shocked to see a flood of new money pouring into stock funds in early January…

Regards,

Greg Guenthner
for The Daily Reckoning

P.S. While mom and pop investors haven’t yet entered the market in droves, this rally has certainly piqued their interest. And when that interest turns to action, you’ll definitely want to know where to position your own investments. Keep watching this space as the story unfolds, and to get the most up-to-the minute advice on what to do, sign up for my FREE Rude Awakening email edition.

You May Also Like:


3 Potholes in the End-of-Year Rally

Greg Guenthner

Stocks are working. Yesterday brought even more new highs. The future is bright and all is right with the world... Or is it? Apparently not every sector of the market is feeling the same love the broad market is. Greg Guenthner shows three areas you'll want to avoid right now...

Greg Guenthner

Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.

Recent Articles

Protect and Serve Thyselves

Ryan Mcmaken

The police operate in their own self-interest, the same as every other human being on the planet. For that reason you cannot rely on your local police department to keep your best interest at heart. As Ryan McMaken explains -- and Ferguson Missouri demonstrates -- your police department’s is not necessarily interested in “protecting and serving you”...


Minerals vs. Marijuana

Douglas French

It might go against conventional thinking, but following the crowd usually makes you miss the real opportunities. At one monetary metal conference recently, the smartest guys in the industry sat down to discuss where these real hidden gems lay. But where does marijuana fall in this debate? Doug French has the scoop...


The Growth of Big Data is Unfathomable

Josh Grasmick

One of the most important trends in the evolution of technology is the advent (and growing importance) of "Big Data." And yet, some people are still confused about what it is - not to mention grossly unaware of just how massive the market for data has become. Today, Josh Grasmick offers an insightful explanation...


4 Ways the Government Is Set to Take Your Money

Byron King

The so-called recovery is only built on debt and printed cash declares our own Byron King. In the long term, the only option for the government to continue financing it's operations is to print too many dollars. Money printing has it's limits, however. It's Byron's opinion that at some point, perhaps very soon, the government will have to turn to more desperate measures. Namely, capital controls. In the following featured essay, Byron outlines 4 probably ways the government will take your cash and one play you can buy through your broker to prepare today. Read on...