These next two years could be the best money-making opportunity you’ve had in this bull market.
And today, I’m going to tell you what to buy and when to sell to maximize your gains.
First, let’s back up…
Last week, I attended the annual Stansberry Conference in Las Vegas.
This conference features presentations from some of the greatest investment minds on the planet—people like Kevin O’Leary, Marty Fridson, and Mike Wilkins.
People call O’Leary “Mr. Wonderful” because of his demeanor on the reality show Shark Tank. Fridson is widely known as the dean of high-yield debt. And Wilkins is one of the best short sellers in the world.
But the presentation I was looking forward to the most was from Dr. Steve Sjuggerud.
Steve has been writing newsletters for a long time. He started his flagship letter, True Wealth, in 2001. And his track record has been among the best in the world.
He’s earned an average of 16% per year for his readers. That beats most hedge funds, mutual funds, and ETFs over that time.
Steve’s also a great market caller.
Back in 2009, he predicted, “The Fed will keep interest rates lower than you can imagine for longer than you can imagine… And that will cause prices of stocks and real estate to soar higher than you can imagine.”
And he was right… We’ve been in a bull market since he made that prediction.
But in Vegas, Steve said the bull market is now entering its last innings. He thinks it has about two years left to run.
Here’s why that’s important…
Historically, bull markets make some of their biggest gains when they’re almost over. Steve calls this a “melt-up.”
But you only have a short window to profit from this opportunity. I’ll show you how in a moment… First, I want to show you why now’s the time to act.
Steve said there are two years left in this bull market.
How can he be so sure?
It all goes back to the Fed…
The federal funds rate is the short-term interest rate set by the Fed. Over the past 30 years, when this rate went above the 10-year Treasury rate… market crashes ensued.
Steve marked the last three times this happened on the chart below.
As you can see, the Fed set the fed funds rate higher than the 10-year Treasury in 1990, 2000, and 2007. Bear markets followed each time.
Right now, the fed funds rate is 1%. The 10-year Treasury rate is 2.2%. That means we’re still in a bull market. But that changes in late 2019.
You see, Steve tracked the interest rate projections of 44 economists. Here’s what he found…
At some point around the end of 2019 or early 2020, the federal funds rate should go above the 10-year Treasury. And that will signal the end of this bull ride.
Here’s why that’s important for you…
The last two years of a bull market are usually some of the most profitable. Steve calls this the “melt-up” phase. And it’s just starting…
A Ninth-Inning Rally
Steve says the final two years of a bull market are like a ninth-inning rally of a baseball game.
And we’ve seen this rally at least three times over the past 50 years.
- In 2007, the S&P U.S. REIT Index (which tracks real estate) rose 55% in the final two years of that bull market.
- During the last two years of the dot-com bubble, the NASDAQ rose over 100%. Other internet stocks rose over 1,000%.
- In the two years before the brutal bear market of the 1970s, the Nifty Fifty soared. Investors pushed these popular large-cap stocks to unbelievable levels. Coca-Cola and Merck soared 150%, Disney 400%… And McDonald’s nearly 800%.
In short, being in the right stocks at the end of a bull market can make you a fortune.
And right now, Steve’s bullish on Chinese and tech stocks.
Young and Exciting
One company that falls into both categories is Chinese-based Tencent. It’s a social media, gaming, and payment processing platform.
Tencent is the fourth-largest internet company in the world. It mainly operates in China but is now branching out… And it’s becoming a force to be reckoned with.
As always, do your own homework before considering any company.
Take advantage of these next two years and buy tech stocks. History says you’ll be rewarded.
Nick Rokke, CFA
Analyst, The Palm Beach Daily
P.S. Steve says the melt-up is creating a “second chance” to make a fortune in the market over the coming days and months. In fact, he says a $500 investment in the stock market could double your retirement account by year’s end. Click here to watch his special interview…
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