• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock What’s the Secret to Crushing the S&P 500?
Stock

What’s the Secret to Crushing the S&P 500?

by January 24, 2025
by January 24, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Remember that old commercial, “It’s not nice to fool Mother Nature?” Well, there should be another one pertaining to the stock market, “Don’t bet against a secular bull market advance!” We’re all trained, or brainwashed, if you will, to believe that the next major stock market top is at hand or just around the corner. It completely immobilizes us when it comes to having belief in the major advance at hand. Give us a bit of selling and we’ll quickly point out the likely recession and swift stock market drop ahead. Two weeks ago, reigniting inflation was a major concern and the S&P 500 was 5% off its high. Today, we’re in all-time high territory after the ACTUAL inflation data said that inflation is NOT a problem. Or we can just be blindfolded and keep tuning into the circus that is CNBC.

Drown out the noise and all the bearish rhetoric, and instead focus on one of my favorite charts. This is a 100-year monthly chart of the S&P 500:

I show this chart to our EarningsBeats.com members at least once per week. It’s that important to recognize and understand long-term perspective. The next time you think, “is this the start of the next secular bear market?”, I want you to remember one thing. There have been TWO starts to secular bear markets in my entire lifetime – the early 1970s and the turn of the century as the dot com bubble popped. That’s it. Just stop trying to call the 3rd one. There have only been 14 cyclical bear markets since 1950, which means that, on average, we see only one of these lesser bear markets every 5-6 years. Since 2018, we’ve had 3 of them (2018, 2020, 2022). That’s waaaaay more than our fair share. Let the bulls do their thing.

The following chart is the HERE AND NOW, not the bears’ wishful thinking and hoping. Yep, it’s another all-time high on the S&P 500:

If you look back above to the 100-year chart, you’ll see that the S&P 500’s monthly PPO is accelerating to the upside, telling us that long-term bullish momentum just keeps building. Bear markets don’t begin until that monthly PPO moves into negative territory. That sure seems like a long time from now based on the 100-year chart. Get on the right side of the trade, which is the long side. Not only is the S&P 500 monthly PPO nowhere near negative territory, none of our 11 sectors are anywhere close either. Every sector currently has a monthly PPO above 4. Our aggressive sectors have monthly PPOs residing near 10 or 11.

At EarningsBeats.com, we stress the importance of owning leading stocks in leading industry groups, which is the exact strategy we use to beat the S&P 500 in our portfolios. Our flagship Model Portfolio has now gained more than 300% since its inception on November 19, 2018. It’s crushing the benchmark S&P 500 as you can see below:

The current quarter is showing tremendous outperformance again. Growth stocks tend to power secular bull market advances, so taking advantageous of that helps in terms of relative performance. Stocks like PLTR, CLS, and TPR are providing us excellent leadership and direction.

Time to Relax

At 4:15pm ET today, our EarningsBeats.com team is hosting a virtual Friday Happy Hour. Everyone is invited! Grab your favorite beverage and join us as we celebrate another all-time S&P 500 high 2025-style! Simply CLICK HERE to join the event, but remember, it won’t start until 4:15pm. Be sure to stop by and meet our entire team!

Happy trading!

Tom

You Might Also Like
  • The Stock Market’s Tremendous Resilience: What This Means For Q2
  • Quantum Computing Stocks You NEED to See
  • Upgrade Your Options Trading with OptionsPlay on StockCharts
  • Macro Market Outlook and Best Options Trade Ideas!
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Lowering the Bar: Why Lowe’s Could Head South
next post
UnitedHealthcare taps company veteran Tim Noel as new CEO following Brian Thompson killing

You may also like

CPI, Bonds, Inflation, Indices and Gold

July 13, 2023

What to Do When The MACD Is Broken

September 28, 2023

Catch BIGGER GAINS by Fishing for Alpha

February 13, 2024

What The HECK?! Can an Inverted Yield Curve Really Be...

July 14, 2023

PMO SELL Signals on All Indexes But One

October 25, 2024

Looking at Recent Market PULLBACK in a Long-Term Context &...

September 28, 2023

Broad-Based Rally Continues: Will It Soar Past Resistance This Time?

April 28, 2023

Sector Rotation Signals an Important Week Ahead for Stocks

September 22, 2023

The Best Five Sectors, #18

May 12, 2025

Top Ten Charts for August: Two Key Defensive Plays

August 21, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • From Tariffs to Tech: Where Smart Money’s Moving Right Now

      June 6, 2025
    • Your Weekly Stock Market Snapshot: What It Means for Your Investments

      June 6, 2025
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Big Rally Ahead Should Yield All-Time High on This Index

      June 6, 2025
    • Silver’s Surge is No Fluke—Here’s the Strange Ratio Driving It

      June 6, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,799 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,505 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,486 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,466 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,343 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,121)
    • Investing (538)
    • Stock (2,597)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • From Tariffs to Tech: Where Smart Money’s Moving Right Now

      June 6, 2025
    • Your Weekly Stock Market Snapshot: What It Means for Your...

      June 6, 2025
    • Procter & Gamble to cut 7,000 jobs as part of...

      June 6, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,121)
    • Investing (538)
    • Stock (2,597)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Four Charts to Track a Potential...

    May 6, 2025

    CSCO Stock: A Hidden Gem With...

    December 5, 2024

    Bank Fear Selloff Gives Way To...

    April 29, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here