When will the Stock Market rebound

By Bruce · Friday, December 26th, 2008

 

I know 2008 is about done and it has been a rough time for some people. It was a rough time for people who have 401K or IRA plans. Some people say their balances drop in half. People who had money invested in the stock market, some of them saw huge drops for the year. On top of this we saw many business closing up or laying off. I have friends in Real Estate, Mortgages, Banking and Construction and they had had one of their roughest years. I do have faith that we all will be fine and recover. Like many successful investors will tell you there are ways to profit in any market. See what Zacks suggests:

Three Careful Ways to Profit
from the Monster Rebound

We’d like to share three Zacks portfolios that are designed for major growth as well as protection. Two are proven money makers that consistently outpace the market. Plus, we recently released a third that is destined to join the pack. Get the inside scoop on long-term trading, 1 to 3-month picks, and companies that steadily pay dividends.

This is the day to move carefully but decisively in the market. Warren Buffett, among others, is taking advantage of extraordinary values to increase his positions. “Be greedy when others are fearful,” he advises. He believes that now is the time to “buy a slice of America’s future at a marked-down price.” Indeed, history supports the wisdom of this approach. Within one year after the worst bear periods, the market rebounds an average of +55.6%. Just look at the table shown here.

We’re not suggesting that you go “all in.” But if you don’t take timely advantage of stock opportunities today, you could miss out on monster gains, and watch inflation eat into your savings.

Now, as always, the key
is picking the right stocks.

For that, we rely on the breakthrough discovery of our founder, Len Zacks. Back in 1978, his research proved that revisions to earnings estimates is the single most important factor that impacts stock prices.

The Zacks Rank is a quantitative model that uses earnings estimate revisions to classify stocks into five groups, ranging from “Strong Buy” to “Strong Sell”. Since 1988 the Zacks #1 Rank stocks have returned +28% per year. That beats the average S&P 500 gain of only +10% during the same time period by nearly THREE times!

This unbiased Zacks Rank underpins the three portfolios that we are giving you today . . .
 
1.

The long-term Focus List includes hand-selected stocks that are destined to outperform the market over the next 12 months.These steady champions, pulled out from many different industries and market cap levels, are consistent high performers.

Here are just three examples of recent Focus list gains . . .

  • Oil and gas explorer EAC gushes +98% in 6 months.
  • Insurance giant AET covers +94% in 3.7 years.
  • Online travel company PCLN flies +290% in 2.3 years.

 

2. 

Our shorter term portfolio, the Timely Buys, is poised to smash the market over the next 1-3 months.These stocks are selected from the Focus List and are all Zacks #1 Rank “Strong Buy.”

Timely Buys generates fast-paced gains like these . . .

  • Footwear manufacturer CROX steps up +60.3% in 11 weeks.
  • Auctioneer BID bangs return of +46.4% in 10 weeks.
  • Power company ELP blasts +22.3% in less than 5 weeks.

 

3.

Growth and Income portfolio, our latest addition, aims for earnings growth plus the stability of regular dividends.This portfolio is comprised of 10 to 15 stocks that have a Zacks Rank of #1 or #2 (Strong Buy and Buy). In addition, not only must a stock garner a dividend yield of 1% or higher, but must meet other fundamental parameters to be included on this prestigious list.

These stocks typically experience significant price increases during up markets while protecting you via dividend payouts in down markets.

Source: Zacks Elite newsletter e-mail

Have Faith and Study

Keep the faith and don’t give up. Things will improve. It seems the more you study and talk to others your knowledge in the market increases and you seem to make more money. Use others knowledge and experience. Talk to Financial Planners to Accountants to Business owners to entrepreneurs and Investors. The more you read, study and talk to others can really get your mind to open up and see opportunities. Always keep looking for deals and opportunities, don’t wait for someone to give them to you.

Hope everyone has a great Holidays. Let me know your thoughts and ideas. Have a great day.

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