A couple months ago I was sitting in a room with a whole bunch of my peers, talking about the future.
We were talking about yearly predictions, or at least what could be in store in the near future.
I couldn’t have been more wrong.
Like so many, I discounted the idea of a European war. I also doubted that anyone would mess with their “bread and butter.” Rich getting richer, moving past one of the most tenuous financially-engineered times in modern history.
It’d take a miracle if what I said could happen, another double-digit rise broad stock market, would happen now. At the time, the Dow was around 36,000, which would put it at 42,000 in less than nine months if it held up.
I’m going to call it. I was wrong. Yet a workaround was presented at the same meeting. Credit given where due…
Back in January, while I sat down with a lot of fellow editors to prognosticate about trends in 2022, I tossed this out as a possibility — what if money keeps flowing in?
I think the concept was solid. People who can divert money to the stock market (a big caveat) have seen wages soar during the pandemic on the whole.
The economy was roaring back. There were plenty of problems but virtually none for people with meaningful ability to save and invest. All signs suggested a good chance that funds would keep flowing in, chasing all-time highs, and that those that can invest would be comfortable with high valuations.
And relatively high inflation is tolerable, often even advantageous, for stocks as long as it is predictable.
Things, as we all know, have changed. But one of my colleagues called it better than anyone else.
A flat market overall with a lot more churn. Room for momentum trades in some key markets, but swings that make it seem relatively flat, even moving lower, over time.
He hit a lot of the trends before they emerged, even before the rebirth of Cold War-era nightmare scenarios that are coming back from what we hoped and felt was ancient history.
The Dow is down over 9% as I write this (Tuesday afternoon). The S&P 500 is down over 11%, along with the Russell 2000. My hypothetical outcome is a stinker.
This isn’t insurmountable, but new headwinds abound. Oil is surging to levels that guarantee inflation for years to come and brutal operating costs for companies. Economic growth is going to be weaker this year, and analysts across the board are downgrading their outlooks across the next five years.
So where is the potential? It’s all about the churn. As markets move, and investors (both institutional and retail) move in and out of stocks and sectors, we’re seeing wild swings.
That colleague that called it right? We’ve published his work around here, with his gracious permission.
Sean McCloskey has been dead-on to date with his 2022 predictions, and it shows.
Imagine making one simple trade and being able to take an average stock gain and make it as much as 49x bigger in as little as seven days. Gains like:
128% in 28 days,
186% in 12 days,
295% in seven days,
205% in 20 days,
207% in 22 days,
597% in 16 days,
And 1,121% in just 12 days.
This isn’t theoretical. He’s done it. All of these are closed positions from the past nine months.
It may sound impossible, but once you see the simple secret behind what he’s doing, you’ll see how easy it can be to start cashing in double-, triple-, and even quadruple-digit gains for yourself.
And just rolled out the whole thing to a limited audience. Sean’s been kind enough to make sure we’re in that loop.
And always, remember — the market may change dramatically, but we have a ton of ways to profit. The only limit is expertise. Sean has proven he has that in spades.
