The stock market is on fire and everyone is making money.
But are we making enough money, considering just how good things have been?
Let me rewind for a second. Do you remember all the promises about a recession that was definitely coming? The yield curve. The money printing. Trump is literally Hitler???
We were even told that we would get a credit crisis of some kind. Maybe even another black Monday...
But all we got instead was one of the greatest years for the stock market in American history.
Here's a chart from our pals over at Goldman Sachs showing this year's performance compared to all the other years over the past century.
It's hard to find a better year for investors:
And this is a good lesson for all of us, myself included.
Even though we've been pounding the table this entire bull market to buy stocks and be as aggressive as possible, it's a nice reminder that we should absolutely focus on price behavior, particularly when sentiment is this far removed from reality.
While stocks have been putting up historic returns, the gloom and doom crowd refuses to relent, whether permabear in nature, or the mentally weak who can't help but let their politics influence their views of the market, or just malicious intent by mainstream media to scare their audience as best they can.
Turn it all off!
It's a scam.
All that stuff is for people who love to lose.
Price is the only thing that pays. Winners follow price.
And price trends persist, as we know.
So that's the anomaly in the market that exists and that we strive to profit from consistently over time.
Keep in mind, it's not the losing trades that keep the best investors up at night....those are just part of the game.
A successful trader's worst nightmare is not making enough money on a trade when you absolutely nailed it.
And if you're like us, and you've absolutely nailed it, are you happy with how much money you made? Are you happy with how much money you're currently making?
There's a time to press and a time to pull back. Our proprietary Breakout Multiplier System focuses on ONLY the areas where it's time to step on the gas, and there are always areas where that is the case, regardless of the type of market environment we're in.
It can be in Bank stocks, or Gold stocks, or Bond ETFs, or Growth stocks or even Crypto Miners. There's always a bull market somewhere, and the proprietary Breakout Multiplier System is specifically designed to find them.
A big theme we've been taking advantage of in this market is the completion of these multi-year bases. We keep seeing them again and again and again.
Most recently, it's the rotation out of mega-cap Technology, which is actually DOWN over the past 20 weeks, and into the small, more speculative growth areas.
Here's the ARKW fund relative to the Nasdaq100 QQQ showing this basing pattern and breakout:
With Technology taking a back seat through the back half of this year, other sectors have taken over leadership.
Sector rotation is the lifeblood of a bull market. More and more stocks, industry groups and sectors are working.
The Small-cap indexes weren't working before. Now they are.
The Transportation stocks weren't working before. Now they are.
Consumer Discretionary wasn't working before. Now it is.
