Prior to the pandemic, the U.S. economy was considered the strongest of our lifetime with 50-year low unemployment, 20-year high in household income, near record high consumer confidence, and record high corporate profits.
Then the coronavirus hit, and the world went into lockdown mode, sending the global economy into recession. (Although, it really should’ve been called an economic ‘suppression’, as the forced restrictions on travel and forced closures of businesses is what tanked the economy.)
But because the U.S. economy was so strong going into the pandemic, we’ve been able to strongly spring out of it.
Since the pandemic lows in late March, U.S. stocks have soared with the Dow gaining more than 59%, the S&P by 63%, the small-cap Russell 2000 Index by 70%, and the Nasdaq by 81%!
In spite of the pandemic, all of the major indexes are positive for the year, with the Nasdaq setting new all-time highs (higher than where it was pre-pandemic).
It’s been a record-setting move.
That’s because the economy has bounced back in record-setting fashion. This was the fastest economic rebound in history by far.
And with expectations for unprecedented growth for the remainder of the year (35% for Q3 GDP, double-digits again for Q4, and forecasts for the highest annual growth rate for 2021 in 38 years), it looks like stocks have a lot more upside to go.
More . . .
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Even though stocks have been soaring, too many people are not seeing the kinds of returns they hoped for.
I think some of that can be attributed to simply being in mediocre stocks. Not by choice, but because they don’t know of anything better to get into instead. Their ‘universe’ of familiar stocks is relatively small, and this limits their opportunity to invest in better ones.
Worse, when they do finally pick a new stock (likely an all too familiar one), they hem and haw as self-doubt creeps into their decision-making process. Then when they finally pull the trigger and it doesn’t work out as planned, it discourages them even more from going out and finding others.
The way to overcome both of those limitations is to learn ‘how’ to pick stocks with a high probability of success.
Once you know how to pick better stocks, you’ll rarely find yourself in chronic underperformers. And when you do, you’ll have the confidence to discard them knowing that the next stock you pick will have a high likelihood of making money.
Of course, having a winning stock picking strategy won’t preclude you from ever having another losing trade. On the contrary, even some of the best strategies only have win ratios of 65%, 70% or 80% -- not 100%.
But if your stock picking strategy picks winners far more often than losers, you can have the confidence to invest in any type of market knowing the odds of success are in your favor.
Confidently Picking Better Stocks
Learning how to confidently pick better stocks is easier than you think. And you don’t have to reinvent the wheel.
• For example, since 1988, the Zacks Rank #1 Strong Buy stocks have beaten the market in 26 of the last 32 years, with an average annual return of 24.7% a year. That’s nearly 2.5 x the S&P with an 81% annual win ratio.
• Stick with the top industries. Since roughly half of a stock’s price movement can be attributed to the group that it’s in, you’ll significantly increase your odds of success by focusing on the best groups. By how much? Our tests have shown that the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of 2 to 1. And the top 10% of industries outperform the most.
• Or select your next stock from a proven profitable stock picking strategy -- like our New Highs strategy with an average annual return (2000-2019) of 47.8%; or our Big Money Zacks strategy with an average annual return of 50.3%; or the Filtered Zacks Rank 5 strategy which produces an average annual return of 54.1%!
The best part about these strategies (aside from the returns) is that all of the testing and hard work has already been done. There’s no guesswork involved. Just point and click and start getting into better stocks on your very next trade.
History In The Making
This truly is an historic time for our economy and the market.
So make sure you’re taking full advantage of it.
That means getting into the right stocks and staying out of the wrong ones.
Don't squander this time with preventable mistakes.
Once you know what to look for, and how to pick better stocks, it can transform your portfolio.
Where to Start
There's a simple way to add a big performance advantage for stock picking success. It's called the Zacks Method for Trading: Home Study Course.
With this fun, interactive online program, you can master the Zacks Rank in your own home and at your own pace. You don’t have to attend a single class or seminar.
Zacks Method for Trading covers the investment ideas I just shared and guides you to better trading step by step, plus so much more.
You'll quickly see how to get the most out of the proven system that has more than doubled the market for over three decades. Discover what kind of trader you are, how to find stocks with the highest probability of success, and how to trade them so you can consistently beat the market no matter where stock prices are headed.
You’ll get the formulas behind our top-performing strategies suited for a variety of different trading styles.
The best of these strategies produced gains up to +122.2%, +153.0%, and even +156.8% from 2017 through Q2 2020.¹
The course will also help you create and test your own stock picking strategies.
Today is the perfect time to get in. I'm giving participants free hardbound copies of my book, Finding #1 Stocks, a $49.95 value. Its 300 pages unfold virtually every trading secret I’ve learned over the last 25 years to beat the market.
Please note: Copies of the book are limited and your opportunity to get one free ends at midnight Saturday, October 24th, unless we run out of books first.
If you're interested, I encourage you to check this out now.
Find out more about Zacks Home Study Course >>
Thanks and good trading,
Zacks Executive VP Kevin Matras is responsible for all our trading and investing services. He developed many of our most powerful market-beating strategies and directs the Zacks Method for Trading: Home Study Course.
¹ The results listed above are not (or may not be) representative of the performance of all strategies developed by Zacks Investment Research.
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