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:


Time Travelling Investors Knew How to Play the September Bounce

Greg Guenthner

In hindsight, investors shouldn’t have been so bearish heading into September... They shouldn’t have ignored the picture-perfect broad market bounce off support. If only investors had a time machine to help with their trading decisions. Greg Guenthner explores what investors can still take from September 2013...

Greg Guenthner

Greg Guenthner, CMT, is the editor of the Daily Reckoning’s Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.

Recent Articles

How Gold Will Respond to Declining Discovery

Henry Bonner

Oil isn't the only resource to experience "peaks." Due to a major contraction in gold exploration over the past few years, the mining sector is no longer mining gold at its replacement rate. In other words, the amount of gold above ground is running out. And according to Henry Bonner, it will get worse before it gets better...


A Simple Strategy for Investing in the US Energy Boom

Byron King

Too often investments are made in a vacuum. But as Byron King demonstrates, the global economic crash... easy money... and technological advancements are all interdependent. In particular, that connection has changed the investment calculus in the resource market. Read on to learn how...


The Traffic Jam That Kills Thousands of People Every Day

Juan Enriquez

Back in the 1980s, John Nestor became infamous for single-handedly causing massive traffic jams on the Capital Beltway. But in his professional life, he created a completely different kind of traffic jam... one that may have contributed to the deaths of thousands of innocent people. Juan Enriquez has the full story. Read on...


Laissez Faire
New and Unexpected Ways to Fund Long-Term Care Expenses

Jamie Hopkins

Too many people think that long-term care planning is just a decision about whether to purchase long-term care insurance. However, long-term care planning is so much more... It is a discussion about how you will fund this expense, where you will receive long-term care, and who will provide the care. Jamie Hopkins explains...


Beware the Barrage of New Tech IPOs

Greg Guenthner

Lately, the market seems to be obsessed with new tech darlings with flashy names and exciting stories. But there are more sinister forces at work... Today Greg Guenthner explains why you should pay no attention to the man behind the curtain, and avoid being tempted by big name tech IPOs. Read on...