They tried and failed.
The market makers on Wall Street did their best to push the economy into a recession, with help from the Fed and the bad-news business media predicting a downturn at every turn.
But it didn’t work.
In fact, we’re in the middle of a strong bull market — with no end in sight.
We told you it would happen. And now we have proof.
In today’s Market Talk, Amber Lancaster and I reveal the seven signs a huge stock market boom is coming in 2020.
This boom is going to be extraordinary. There are two key drivers that will send the right stocks soaring:
- Millennials, who are just entering their prime homebuying and family-building years.
- The mega tech trends at the heart of our Bold Profitsservices, which are creating a lollapalooza for the U.S. economy and a new manufacturing renaissance I call “America 2.0.”
Check out today’s Market Talk to find out why the market is about to explode and what sectors will reap the biggest rewards.
Booming Sectors
In just the past week, we saw not one, not two, but seven blowout U.S. economic releases that beat expectations. I’ll highlight three right now. The first up are housing starts and building permits.
Take a look at the white line about which represents November’s housing starts. Those starts have beaten forecasts. Housing starts rose to a three-month high, hitting 1.37 million, all while building permits — the blue line — skyrocketed to a 12-year high.
Homebuilder sentiment is up as well.
U.S. homebuilder sentiment rose to a 20-year high on stronger sales, topping 76. Up 20 points from last year and the largest 12-month advance since 2013. Low mortgage rates and job growth are contributing to these positive numbers.
Speaking of job growth, U.S. job openings unexpectedly rose in October as another sign of tightness in the labor market with the jobless rate at a half century low.
The latest job openings and labor turnover survey (jolts) shows that a huge demand for labor is outpacing the supply of people to fill the jobs.
Right now, the number of unfilled positions has soared by 235,000 to 7.5 million. Eliza Winger, a Bloomberg economist put it this way: “Jolts data provides further reassurance of underlying strength in the labor market. As long as the job market remains healthy, consumers will have the means to support solid growth and spending. Payrolls data has shown similar resilience.” [1]
Amber on Innovation
Microbot Medical is set to unveil the world’s first sully disposable robotics system for neurovascular, cardiovascular and peripheral vascular procedures.
The robotic system called Liberty, features a “unique compact design with the capability to be operated remotely, reduce radiation and exposure and physical strain to the physician, as well as the potential to eliminate the use of multiple consumables through its one-and-done capability.”
Microbot Medical states it creates transformational micro robotic medical technologies that can change the future of medicine.
Good News Roundup
Good News Roundup story number one: A recent survey conducted by the American Association of Individual Investors shows that U.S. sentiment is turning more optimistic. The spread between the bullish and the bearish readings hit the strongest reading since February 2018.
Good News Roundup story number two: Goldman Sachs U.S. financial conditions index has fallen to its lowest level since 2018. It’s a “positive sign for U.S. economic growth heading into 2020, signifying easier financial conditions.”
Finally, Good News Roundup story number three: Fannie Mae’s chief economist Doug Duncan is predicting that the U.S. housing market will have a recession-proof economy in 2020. He was quoted in HousingWire as saying,
“Housing appears poised to take a leading role in real GDP growth over the forecast horizon for the first time in years. We now expect single family housing starts and sales of new homes to increase substantially.”
Paul on 2018 – 19 Recession Claims
We have survived through 2018 when big money investors almost created the conditions for a recession. The Federal Reserve didn’t help by raising rates and simultaneously shrinking their balance sheet in a significantly through 2018.
Hindsight is 20/20. It’s clear now that we never got anywhere near a recession. I looked at all the numbers this past weekend. The GDP never got anywhere near a recession levels and consumer spending never got anywhere near a recession levels.
And this is what’s critical to this story: millennials.
Millennials represent a massive influx of people have the ability and desire to spend money on major life milestones including home mortgages and all those expenses related to starting a family.
Millennials are creating the conditions for this economy to continue to keep growing.
This new generation is one of the megatrends we’ve been telling you about for years. Others include: Internet of Things (IoT), artificial intelligence (AI), block chain and so many sub-elements like robotics and others. You put all these together and I believe we have the conditions for what I am calling a lollapalooza effect of people and technology coming together for an extraordinary period for our economy.
Most people are going to say, “Paul, have you not noticed we’ve gone through 10 years of a bull market?” Yup, we’ve studied this. Everything we are looking at points to the fact things are going to get even better. That means that the stock market is going to continue to keep rising.
I do want to say, nothing goes up in a perfect straight line. There will be ups and downs as we have seen in 2018 and 2019. However, I am incredibly optimistic about the future. Please ignore the bad news media, ignore the doom and gloom that is pushed at you. Stay in our stocks.
We are positioned incredibly well across our services.
Investing in Your Future
Speaking of our services, this week we are promoting Rapid Profit Trader, which focuses on one area of my Going Upness strategy. We focus on stocks that are in demand.
Then we look to find options that are going to benefit from these stocks shooting upward. We find those options, tell you to buy them and that’s how we make money. If you are interested in making money fast, in large amounts — oftentimes the holding period is just a couple weeks — then find more at Rapid Profit Trader.
We wish you a Happy Hanukkah, a Merry Christmas, Happy Holidays and we’ll see you again next week.
Regards,
Editor, Profits Unlimited
Sources:
[1] Bloomberg – Job Openings in U.S.
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