Editor's note: If you read the financial news, you might think the world is headed toward disaster. But according to Marc Chaikin, founder of our corporate affiliate Chaikin Analytics, the cold hard data paints a different picture. In this piece – adapted from the June 21 Chaikin PowerFeed essay – Marc details how one tool helps investors focus on the facts... and avoid making bad choices in today's bull run.
It's easy to get distracted by negative news...
After all, there's a lot going wrong in the world.
Fighting continues in the Middle East... Conflict is ongoing in Ukraine... And tensions between the U.S. and China are high.
What's more, despite the improving economic numbers, many consumers feel like things are terrible right now.
Put simply, the negative narratives out there can feel overwhelming. But the data tells a different story.
That's especially true in the stock market. In fact, signs suggest we're in the early innings of a runaway bull market.
But that doesn't mean you should throw caution to the wind, either.
Today, I'll use one special tool to show you what I mean... And I'll explain why it's crucial to know the "winners" from the "losers" in today's market.
After a brief pause, the market is making another big move higher. The S&P 500 Index is up almost 3% over the past month.
That's roughly six months' worth of the index's typical gains in a single month.
Meanwhile, the tech-heavy Nasdaq 100 Index has soared about 4% over the same period. Despite some small pullbacks, both indexes have kept making record high after record high this year.
Put simply, it looks like we're in a runaway bull market. And it's clear on the chart below. Take a look...
So far in 2024, the broad market S&P 500 has gained an incredible 15%. And the Nasdaq 100 is up 16%.
This is important to keep in perspective when we see negative news...
Many people feel bad about the state of the world. I'll also acknowledge that across the globe, terrible things are happening – and many folks are struggling.
But for investors, there's no getting around the fact that the markets are soaring.
With that said, this doesn't mean you should run out and just buy anything...
This is where our Power Gauge system comes in. At Chaikin Analytics, we use this tool to gather a wide array of investment fundamentals, technicals, and more into a simple rating.
Take a look below at the Power Bar ratings for the S&P 500 and the Nasdaq 100. In our system, we use the SPDR S&P 500 Fund (SPY) and the Invesco QQQ Trust (QQQ) to measure those indexes, respectively.
The Power Bar gives us a visual representation of the number of "bullish," "neutral," and "bearish" ratings in a specific index, fund, or industry. For SPY and QQQ, here's what that mix looks like...
In both cases, the majority of the stocks in these funds earn a "neutral" or worse rating from the Power Gauge. That means that just a select few stocks are responsible for this rally.
In other words, even with the strength we've seen from this bull market, differentiating between the "good" stocks versus the "bad" stocks is more important than ever.
More specifically, you want to make sure you're investing in the "bullish" names... and avoiding the "bearish" ones.
Beyond that, you need to understand what this incredible market concentration means. U.S. stocks are at their most concentrated levels ever. And that has big implications for some very specific segments of the market going forward.
That's why tonight, I'll be going on camera to share the details of my next big prediction...
I'll also share an investing strategy that could make you bigger gains than anything I've ever used the Power Gauge for before.
No matter how you've fared in the markets the past few years, take my word that it's all on the line today.
My special event with all the details is tonight at 8 p.m. Eastern time. It's completely free to attend online. You just need to sign up in advance... Save your spot right here.
Good investing,
Marc Chaikin
Editor's note: Marc is a Wall Street veteran with 50 years of experience. He has accurately predicted multiple market events over his career. And now, he's stepping forward with his biggest prediction yet...
As Marc explains, a huge monetary shift is unfolding in America right now – but no one is paying attention yet. So TONIGHT, at 8 p.m. Eastern time, Marc will share the whole story online... including why it could affect your wealth for years to come, whether you take action or not. If you haven't signed up yet, it's not too late... Click here to reserve your free spot.
Further Reading
Some folks are sitting on the sidelines rather than investing their hard-earned cash. But that's a big mistake. The best way to build your wealth – and your retirement fund – over time is with the stock market... Read more here.
"Investors aren't pouring money into stocks this year," Brett Eversole writes. Instead, they're buying up safe assets like bonds. That's just the first clue that tells us we're nowhere near a top... Learn more here.
