This story was originally published here.
With the S&P 500 Index more than 35% above its recent lows, traders are happy. But celebrations ignore the fact the index is 5% lower since the start of the year.
Even after the rally, buy-and-hold (B&H) investors show a loss over the past five months. And they seem happy because the loss is less than it was a couple months ago.
If their goal is mediocre returns, B&H investors will enjoy the next 10 years. That’s because two major Wall Street firms are warning of low returns ahead.
Citi Private Bank analysts developed a model based on fundamentals.
They adjust earnings for inflation, then they average earnings over the past 10 years. With this data, they project the next 10 years.
The chart below shows the model’s track record since 1955. As you can see, the model (the light blue line) has closely matched the S&P 500 Index’s performance:
According to the model, returns will be disappointing in the next decade. B&H investing won’t work.
Fortunately, there’s a different strategy you can use to make market-beating gains.
Editor's Note: Click here for the rest of the story.
White House Memo Could Help Send This on a 22,540% Growth Surge
When the White House pushed its “energy dominance” doctrine, promising a “Golden Era of American Energy”…
Denver-based Whiting Petroleum jumped 178%, HollyFrontier Corporation tripled and Texas company Jones Energy jumped 320%.
When the government declared: “We will begin to revive and expand our nuclear energy sector…”
Shares of both International Isotopes and Lightbridge Corporation bounced more than 75% in a few months, and U.S. Nuclear Corporation returned 1,639%.
And on February 16, 2017, Resolution 38 was signed in support of the coal industry.
NACCO Industries – the public holding company for the North American Coal Corporation – responded with a 223% gain.
As you can see, the U.S. government has a long track record of triggering massive gains. Now a controversial new video reveals the White House’s newest priority – to roll out a radical technology.
On page 1 of a recent, official government memorandum, it states that “America must be first” in launching this innovation. One that Bloomberg confirms will “transform the way we live and work … and add trillions of dollars to the global economy every year.” And that experts are calling the “next big thing.”
In this special video presentation, you’ll find out why this technology could be the greatest stock market story of the decade.
To see it, simply click here now…
