A struggling global economy plus shaky governments around the world are triggering a massive flow of capital toward the best available opportunities.
Debt crises in Europe and Japan are driving capital flight out of bond markets in search of better investments.
And at the top of their list? You guessed it: U.S. stocks!
That’s why I’m not one bit surprised that over the past 8 years, the Dow Jones Industrial Average has gone up a staggering 227%.
After all, capital is agnostic. It doesn’t care that governments are bankrupt or that their economies are struggling or that their currencies are deflating.
The thing is, regardless of world conditions, there are always people and companies that have enormous amounts of capital to invest. And capital always seeks the safest, best returns possible, no matter where they are in the world.
Larry Edelson accurately predicted this capital flight – away from the public sector (government bonds) into the private sector (stocks) – many years ago. He correctly explained that stocks represent assets that can outlast governments.
In fact, this is exactly what happened during the Great Depression – when the Dow rallied 372% from 1932 to 1937.
And it’s these powerful and undeniable global forces that are driving the bull market in U.S. stocks and will lift the Dow to 31,000.
That’s not a typo: 31,000 on the Dow.
But not without an occasional market correction.
In the long history of capital markets, nothing ever moves in a straight line either up or down – there are always minor corrections against the prevailing trends.
And fair warning, I see this dynamic setting up in U.S. stocks going into mid-year.
In the short-term – days and weeks ahead – the Dow Jones and S&P 500 Indexes could grind marginally higher on the back of strong first-quarter earnings season, but it won’t last.
While estimates have come down, the market is looking for first-quarter earnings growth of nearly 10 percent from the year-ago period – that’s a very tall order. And investors could be disappointed with actual results.
That’s just one of many catalysts that will trigger a healthy and much needed market correction lasting six to eight weeks …
The above chart of the Dow Jones Index slides into late June. This presents an excellent buying opportunity for select stocks, before they blast sharply higher again.
This will be the time to purchase blue chip stocks — and their sectors — on the cheap.
In fact, right now, I have my eyes on a couple of sectors under their belts. My list includes energy, consumer staples and defense, among other sectors. These stocks are ripe — and almost ready for the picking.
But now’s not the time to back up the truck. Patience and timing — as always — are key.
Good Investing,
Mike Burnick
Rick welke June 16, 2017
The article “Buying Opportunities Dead Agead for Stocks” was completely inaccurate as stocks have not went down into June from the date of this article April 7, 2017. Now you want us to believe they will start going down in June and this will last into August based on a correction. Then will go to 31,000 for the final crest of the K-wave. Everything being predicted by this projection is based on no mathematical facts that I can tell. If there is something more to this please let us know as every time a prediction is done it has been wrong.
David Latham April 13, 2017
Mike: What about precious metals. You are going to tell us when to “back up the truck” on these as well correct?
R, David
S. Jason April 12, 2017
Hello Mike,
Yes, Larry too was saying that stocks soon will be the best place to park one’s investments (other than in gold/silver). However, I have been hearing that the government has plans for not only future bank “bail-ins” but also bail-ins for IRAs, 403bs, 401-ks, etc. Is this just for cash accounts or will it include retirement money invested in stocks, ETFs, mutual funds, precious metals, etc? Would the bail-ins include ROTH IRA accounts as well as non-retirement taxable accounts also? What are the ways one can avoid this potential confiscation?
Will you be discussing this topic anytime soon?
Thank you.
Shannon
$1,000 gold April 10, 2017
with larry gone you have some big shoes to fill, mike. if anyone can do it, you da man! i really like this article. it’s better than larry could have done himself.
OLCAY BALLI April 9, 2017
What dou you think about gold mike awailable in wars.
Caryn J Sherne April 9, 2017
Hello:
Per the above chart showing sharp decline in May-June, would it be prudent to sell (all, most volatile?) to preserve cash value and then have the “buy” list at the ready for when it starts to rise (or preferably as close to right before as possible)?
As you can no-doubt tell, by the question, my experience in this arena is not vast. (Yet).
Harlin bachmann April 8, 2017
do you mess with Penny stocks in any way?
philip goldman April 8, 2017
when is GOLD BEGIN ITS MOVE?
Gary April 7, 2017
These buybacks are doing nothing to help the stockholder. How much has companies like Tesla, and Amazon actually made in the past?
Frank April 7, 2017
Stocks aren’t cheap anymore because of market mania and debt-financed stock buybacks. “…an occasional market correction” won’t make investing in this insanity a significantly better buying opportunity. It’s pure April fool speculation.
Your chart has two plots, green and black. Which means what? No legend. Tiny font, can’t read it. Please don’t be sloppy about presenting data.
A. Witter April 7, 2017
Then why isn’t buying the DOW, ever recommended in RWR?
Cami Dieken April 7, 2017
I am invested in The Real Wealth Report and Gold Miner Millionaire. Will I miss out on your stock picks that you are contemplating? Please advise.
Thanks,
Cami Dieken
Thomas Dickey April 7, 2017
Will the buying opportunities referenced in Mike’s comment, “My list includes energy, consumer staples and defense, among other sectors. These stocks are ripe — and almost ready for the picking. But now’s not the time to back up the truck. Patience and timing — as always — are key”, be included in “Real Wealth Report”?
And, I deeply appreciate the succession path that is being sustained subsequent to Larry’s insightful approach to investing. I noticed some drop off (to be expected) in “Real Wealth” which is not my concern. I just want to remain plugged in to the best Weiss research sources to inform some of my investment decisions, and question whether the Real Wealth format will continue. Thanks for taking my comment.