As Inflation Dies, A New Bull Market Is Emerging | InvestorPlace

  

Category:  News & Politics

Via:  jbb  •  2 weeks ago  •  28 comments

By:   Luke Lango (InvestorPlace)

As Inflation Dies, A New Bull Market Is Emerging | InvestorPlace
Given the dynamics and price action at play today, it seems a new bull market is coming. We think 2023 will be a record year for the market.

S E E D E D   C O N T E N T



Investors who own the right stocks will make fortunes when this bull market takes off

January 13, 2023 By Luke Lango, InvestorPlace Senior Investment Analyst Jan 13, 2023, 1:32 pm EST January 13, 2023

  • In a new bull market, you tend to see things like housing, airline, copper, and industrial stocks lead the rally. Meanwhile, energy, utility, and healthcare stocks tend to lag - exactly what's happening today.
  • Typically, when inflation rises sharply, stocks plummet. Conversely, when it falls sharply, stocks tend to rocket. And inflation is collapsing right now.
  • Stocks tend to rally by about 20% in the 12 months after inflation peaks.

financial-bullish-figurine-bull-1600-768x432.jpg

Source: shutterstock.com/Halk-44

Stocks are off to a hot start in the new year.

We're only eight trading days into 2023, and yet the S&P 500 is already up about 4%. The Nasdaq is up even more, with a 5% gain year-to-date. And our core Innovation Investor portfolio is up almost 8% in that same time!

A few of our stocks have already popped more than 30% in 2023!

What's happening here?

Well, a new bull market is emerging .

Just look at the stocks that are leading and lagging in this rally.

In a new bull market, you tend to see things like housing, airline, copper, and industrial stocks lead the rally. Meanwhile, energy, utility, and healthcare stocks tend to lag.

That's exactly what we're seeing today.

Year-to-date, industrial stocks are up 5%. Housing stocks are up 10%. Copper stocks jumped 16%, and airline stocks are up a whopping 18%. Meanwhile, energy stocks are up less than 3%. Utility stocks have risen less than 2%, and healthcare stocks have gone nowhere. That's typical "new bull market" price action.

We are seeing this price action because the incoming economic data is strongly suggesting that inflation is dying .

A Bull Market Emerges


Inflation is the enemy of the stock market. Typically, when it rises sharply, stocks plummet. Conversely, when inflation falls sharply, stocks tend to rocket.

Inflation is collapsing right now.

Yesterday, we learned that in December, consumer prices fell month-over-month. They dropped 0.1% from November. Monthly drops in the consumer price index are exceptionally rare. They only happen about once every few years. But when they do, they always signal that inflation is dying.

Sure, headline inflation rates in December were still 6.5% year-over-year. But that was a 70-basis-point slowdown from November's inflation rate, which itself was a 60-basis-point slowdown from October's inflation rate.

At this rate of disinflation (60 to 70 basis points of disinflation per month), headline year-over-year inflation rates will drop to 2% by June!

Forget what you're hearing on TV or reading in the paper. The data says inflation is crashing fast.

That's why stocks are soaring in 2023 - and why they'll keep soaring for the next 12 months (at least) .

Stocks tend to soar in the 12 months after inflation peaks. Average returns going back to the 1920s? About 12%. And that includes The Great Depression and 2008 financial crisis - the only two times in history that stocks crashed after inflation peaked And we have neither condition present today.

Excluding those, stocks tend to rally by about 20% in the 12 months after inflation peaks.

The Final Word

Put simply…

When inflation crashes, stocks pretty much always soar for about 12 months. Inflation is crashing right now, so it's very likely that stocks soar over the next 12 months.

In fact, given the dynamics at play today, we think that 2023 will be a record year for the stock market.

We think a 30% or bigger rally is on deck .

In this mega-rally that almost no one sees coming, certain stocks will soar 100%, 200%, even 500%-plus over the next 12 months alone.

Investors who own the right stocks will make fortunes.

So… the question is… do you own the right stocks?

We do. That's why our core portfolio is already up almost 8% year-to-date.

Find out what stocks are driving those big gains and which could soar more than 100% this year alone .

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

1x1.trans.gif Submit analysts_luke_lango_180x180circle-150x150.png Luke LangoEditor, Hypergrowth Investing


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jrDiscussion - desc
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JBB
Professor Principal
1  seeder  JBB    2 weeks ago

There is lots of good economic news out lately!

 
 
 
Texan1211
Professor Principal
1.1  Texan1211  replied to  JBB @1    2 weeks ago

yes, but isn't it still a shame about those inflation rates!

 
 
 
Ozzwald
Professor Quiet
1.2  Ozzwald  replied to  JBB @1    2 weeks ago
There is lots of good economic news out lately!

News that certain people will be sure to ignore.

 
 
 
Texan1211
Professor Principal
1.2.1  Texan1211  replied to  Ozzwald @1.2    2 weeks ago

or willing to recognize everything isn't as rosy as Democrats would have us believe.

inflation is still high unless you don't think a 6.5 per cent increase from the year prior is hurting anyone.

 
 
 
Drinker of the Wry
Sophomore Principal
1.2.2  Drinker of the Wry  replied to  Ozzwald @1.2    2 weeks ago

Isn’t inflation still outpacing wage growth?

 
 
 
Texan1211
Professor Principal
1.2.3  Texan1211  replied to  Drinker of the Wry @1.2.2    2 weeks ago

yes it is but some folks are willing to gloss over that because the Dems were in charge

 
 
 
Jeremy Retired in NC
Professor Expert
1.2.4  Jeremy Retired in NC  replied to  Texan1211 @1.2.3    2 weeks ago

We've been seeing a lot of things glossed over in the last 2 years.  

 
 
 
Texan1211
Professor Principal
1.2.5  Texan1211  replied to  Jeremy Retired in NC @1.2.4    2 weeks ago

new cottage industry, glossing over Biden's remarks and actions!

 
 
 
JBB
Professor Principal
1.2.6  seeder  JBB  replied to  Drinker of the Wry @1.2.2    2 weeks ago

Inflation is now 6% year over year but the SS COLA increase was 8.7%. Last month prices actually declined. I am so sorry if these facts upset your downer agenda...

original

The hedge fund get rich when everyone else loses guys are talking down stocks because they bet big on à big recession.

Instead, prices are stabilized and should be at an annual rate of 2% by June. We had a two quarter recession that already ended.

"Economics is just math" - Bill Clinton...

 
 
 
Ozzwald
Professor Quiet
1.2.7  Ozzwald  replied to  JBB @1.2.6    2 weeks ago
Inflation is now 6% year over year but the SS COLA increase was 8.7%. Last month prices actually declined.

But how can that be?  I'm pretty sure FoxNews said that America, as we know it, was about to end because of Biden and inflation.

/sarc

 
 
 
Texan1211
Professor Principal
1.2.8  Texan1211  replied to  JBB @1.2.6    2 weeks ago
Instead, prices are stabilized and should be at an annual rate of 2% by June. We had a two quarter recession that already ended.

I sure hope that didn't come from any of those folks who claimed inflation was just temporary way back in July 2021. They don't seem reliable.

 
 
 
Drinker of the Wry
Sophomore Principal
1.2.9  Drinker of the Wry  replied to  JBB @1.2.6    2 weeks ago
Inflation is now 6% year over year but the SS COLA increase was 8.7%. Last month prices actually declined. I am so sorry if these facts upset your downer agenda...

Inflation in the United States hit a record high in June 2022. Consumer prices soared by 9.1% compared with a year prior, the largest annual increase since 1981. While wages are rising, they’re not keeping up with inflation. Wage growth has been consistent with an inflation rate of about 4.5%. Meanwhile, as of November, inflation was at 7.1%.

"Economics is just math" - Bill Clinton...

Statistics are just math - Drinker of the Wry.

 
 
 
Drinker of the Wry
Sophomore Principal
2  Drinker of the Wry    2 weeks ago

Isn’t inflation still outpacing wage growth?

 
 
 
Ender
Professor Principal
3  Ender    2 weeks ago

Funny. Here I thought the article was about the stock market yet not one comment about that...

 
 
 
Texan1211
Professor Principal
3.1  Texan1211  replied to  Ender @3    2 weeks ago

hmm.

maybe the first comment is a clue as to the overall discussion?

or maybe the headline????

 
 
 
Ender
Professor Principal
3.1.1  Ender  replied to  Texan1211 @3.1    2 weeks ago

Say whatever the fuck you want. Just pointing out the whole article is about stocks.

 
 
 
Texan1211
Professor Principal
3.1.2  Texan1211  replied to  Ender @3.1.1    2 weeks ago

your permission is unnecessary and not asked for.

 
 
 
Ender
Professor Principal
3.1.3  Ender  replied to  Texan1211 @3.1.2    2 weeks ago

If you needed my permission you would be deleted from this whole seed as you still not even addressed one single thing in the article.

Yet that is up to JBB.

 
 
 
Texan1211
Professor Principal
3.1.4  Texan1211  replied to  Ender @3.1.3    2 weeks ago

when you get around to reading the article you will find it mentions inflation a number of times, thus making it on topic.

good thing you aren't a mod!

 
 
 
Ender
Professor Principal
3.1.5  Ender  replied to  Texan1211 @3.1.4    2 weeks ago
it mentions inflation a number of times

As causation for stocks....

 
 
 
Texan1211
Professor Principal
3.1.6  Texan1211  replied to  Ender @3.1.5    2 weeks ago

I read the article.

which is why I didn't claim that inflation isn't on topic or not included in the article.

 
 
 
JBB
Professor Principal
3.1.7  seeder  JBB  replied to  Ender @3.1.5    2 weeks ago

The doomsayers in the gop are greatly disappointed that we are not suffering a massive recession to blame Biden for...

original

 
 
 
Ender
Professor Principal
3.1.8  Ender  replied to  Texan1211 @3.1.6    2 weeks ago

So you cannot see any causation that it could have on stocks? That is what they are talking about. How it impacts the market, not about the subject itself.

 
 
 
Texan1211
Professor Principal
3.1.9  Texan1211  replied to  Ender @3.1.8    2 weeks ago
So you cannot see any causation that it could have on stocks?

I never said that. Stop inferring what you want from my posts. 

 
 
 
Texan1211
Professor Principal
3.1.10  Texan1211  replied to  JBB @3.1.7    2 weeks ago

Nonsense.

 
 
 
George
Freshman Guide
4  George    2 weeks ago

1x1.trans.gif  Submit  analysts_luke_lango_180x180circle-150x150.png  Luke LangoE ditor, Hypergrowth Investing

Is Luke Lango a Fraud?

So, what is our impression of the guy thus far? Well, there is still a lot to tackle to get a fuller picture. But we checked his   current TipRanks profile , and we saw an unflattering update:

Ranked #11,298 out of 11,401 Bloggers on TipRanks ( #19,193 out of 19,346 overall experts)
Also, his average return per rating is -27%.
There are no significant performance discussions on Lango in Better Business Bureau. What you will read on the   Investorplace BBB page   are mainly refund  and spam complaints.

This is why it got a measly 1.06 rating from website readers as of this writing.

Based on 42 reviews by the time we published this, Investorplace got 1.3/5 stars on   Pissed Consumer . So it would seem like commenters here have the same sentiments as those on BBB.

This website even has a breakdown of ratings. Apparently, it asks readers to rate the publisher's website, product or service diversity, style and design, price affordability, and coverage area.

Investorplace received an average of 1 star across the board.

Of those who reviewed it as of this writing, only four subscribers gave it 3 stars. Six gave it 2 stars, while 32 readers gave the company 1 star.

Who Care what this incompetent POS thinks?

Is Luke Lango a Fraud? Read This To Find Out (greenbullresearch.com)

 
 
 
Ronin2
Professor Quiet
4.1  Ronin2  replied to  George @4    2 weeks ago

Leftists will take any good news these days- even if it is from someone full of shit; and wrong nearly all of the time.

Average return rating is -27%? Why would anyone listen to him for stock advise? 

 
 
 
George
Freshman Guide
4.1.1  George  replied to  Ronin2 @4.1    2 weeks ago

Nobody with a 3 digit IQ.

 
 

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