How to Double Your Stock Returns in 2019
The market is off to a spectacular start this year. And what a start it’s been.
Already, the Dow is up 13.39%, the S&P is up 15.72%, the Russell 2000 Small-Cap Index is up 17.38%, and the Nasdaq is up 20.05%.
But none of this should come as any surprise.
Given the robust economy, and the best jobs market ever, you can see why 2019 is expected to be a banner year.
So as an investor, you should be handily beating the market right now. And planning on crushing it this year. If not, now would be a good time to reflect on what you’re doing right in the market, what you’re doing wrong, and what you'd like to do better.
This includes patting yourself on the back for your successes.
Being honest with yourself for your failures.
And setting big goals for what you'd like to accomplish.
Like doubling your investment returns. (That’s right, double!)
It takes no more mental energy to work on a big goal than it does to work on a small one.
But the end results can be enormous.
Most people set their sights on small ideas because they don't yet know how they'll achieve them.
But in today's day and age, somebody has likely accomplished the very thing you've set out to do -- and left a roadmap on how to do it.
That goes for the market too.
And the market looks poised for big things to come.
There’s also a phenomenal set of stats as a backdrop to suggest big gains are indeed on the way.
We have the perfect 100% track record of the market going up the year after midterms (on average of 17%). And that’s this year.
And the recent yield curve inversion has historically shown a strong tendency for the market to move up sharply afterwards. In fact, looking at the last three inversions (1989, 1998, and 2006), the S&P soared afterwards with an average gain, from the first inversion to the ultimate high of that cycle, of 35% over a 16-month average time span.
So there’s a huge probability for a spectacular year this year, with expectations running high for something even bigger.
Continued . . .
There’s still time to get in early on our just-released 5 Stocks Set to Double. Each is the single favorite of a Zacks expert with the best chance to gain +100% and more in the months ahead:
1. Small drone maker undercuts defense giants.
2. Science breakthrough creates company with over 70 patents.
3. Cybercrime solver on acquisition spree.
4. Trusted brand repositions from holiday-only to everyday gifting.
5. Retailer no longer fights but exploits online shopping alternatives.
Deadline to download this Special Report is midnight Sunday, April 14.
Do What Works
So which stocks should move the most? Stick with tried and true methods that work to find the best ones.
This is part of the roadmap to success.
For example, did you know that stocks with a Zacks Rank #1 Strong Buy have beaten the market in 26 of the last 31 years with an average annual return of 25% per year? That's nearly 2.5 x the S&P. But when doing this year after year, that can add up to a lot more than just two and a half times the returns.
And did you also know that stocks in the top 50% of Zacks Ranked Industries outperforms those in the bottom 50% by a factor of 2 to 1? There's a reason why they say that half of a stock's price movement can be attributed to the group that it's in. Because it's true!
Those two things will give any investor a huge probability of success and put you well on your way to achieving your goals.
But you’re not there yet, as those two items alone will only narrow down a field of 10,000 stocks to the top 100 or so. Way too many to trade at once.
So the next step is to get that list down to the best 5-10 stocks that you can buy.
Proven Profitable Strategies
Picking the best stocks is a lot easier when there’s a proven, profitable method to do it.
And by concentrating on what has proven to work in the past, you’ll have a better idea as to what your probability of success will be now and in the future.
For example, if your strategy did nothing but lose money year after year, trade after trade, over and over again, there’s no way you'd want to use that strategy to pick stocks with. Why? Because it's proven to pick bad stocks.
On the other hand, if your strategy did great year after year, trade after trade, over and over again, you'd of course want to use that strategy to pick stocks with. Why? Because it's proven to pick winning stocks.
Of course, this won't preclude you from ever having another losing trade. But if your stock picking strategy picks winners more often than losers, you can feel confident that your next trade will have a high probability of success.
Stock Picking Secrets of the Pros
One of the best ways to begin picking better stocks is to see what the pros are doing.
There’s no one perfect way to beat the market. Some traders prefer high flying “home run” stocks, while others prefer deeply discounted value stocks. Some may prefer low-priced, but high-profit potential stocks under $10, whereas others are more comfortable with mature, dividend producing income stocks.
Regardless of which one fits your personal style of trade, just be sure you’re getting the best advice from experts who have demonstrated their ability to beat the market.
The best part about this approach is that all of the hard work is done for you. There’s no guesswork involved. Just follow the experts and start getting into better stocks on your very next trade.
Roadmap to Success
As you can see, there’s a clear roadmap to success to help you achieve your goal of doubling your stock returns in 2019.
No need to reinvent the wheel. The path has already been created. Now it’s just about doing it. And once you decide to do something, it’s amazing how often those decisions come true.
And just like anything, it only requires a few simple steps to get the ball rolling.
Where to Start
Today you are invited to take part in a unique arrangement called the Zacks Investor Collection. It enables you to consult the picks and commentary from all our long-term portfolios in real time for the next 30 days. Plus it includes Zacks Premium research so you can find winning stocks, ETFs, and mutual funds on your own.
And here's another great head start: With your 30-day trial you can download our just-released Special Report, 5 Stocks Set to Double free.
Each is the personal favorite of a Zacks expert to have the best chance to gain +100% and more in the months ahead:
Stock #1: Small drone maker is undercutting defense giants and already becoming an industry leader with colossal positive earnings surprises and new contracts in the wind.
Stock #2: The Greatest Discovery in the Century of Biology has created a company with over 70 issued patents and hundreds more awaiting approval.
Stock #3: This small-cap cybercrime solver has made 2 big purchases and just committed to a third. Its services are in surging demand with a predicted $2.1 trillion in data breaches this year alone.
Stock #4: Its price jumped 15X since the recession, and upside potential is still tremendous. The secret is new acquisitions, new products, and repositioning from holiday-only to everyday gifting.
Stock #5: Founded in the 19th century, this retailer no longer fights online shopping alternatives. It's now using them to generate massive earnings upswings.
The earlier you get into these stocks the higher their profit potential. Also, the deadline to download 5 Stocks Set to Double free is midnight Sunday, April 14.
Thanks and good trading,
Kevin Matras serves as Executive Vice President of Zacks.com and its leading products for individual investors. He invites you to try all Zacks’ private long-term portfolios and download our newly released 5 Stocks Set to Double Special Report.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.