Is 2021 still bullish or will the bear come back out of hibernation?
What groups are likely to outperform in the year ahead?
What are the top 12 picks for 2021?
Steve Reitmeister answers these questions and more in his just released presentation. Just click below to watch now:
This presentation was recently recorded at the Mad Hedge Investors Online Summit and provides Steve’s most up to date views on the stock market.
First, he contemplates the bullish argument including the #1 reason why stocks bounced in March even as we were in the grips of a scary recession. And why that same reason still exists today to bolster stock prices into the future.
Then Steve goes on to prove that the economy is rebounding better than expected. So even though still technically a recession, the direction of the economy, and the pace of improvement, point to more upside ahead.
However, before you start gushing over all the upside potential Steve shares the bearish elements at play such as the current alarming rise of Coronavirus cases around the globe. And if it continues how it will set the economy and stock market back once again.
There is also a risk of too much Fed accommodation and government stimulus creating an overheated economy. And that could generate unwanted inflation, which would be a clear negative for stocks.
Next up Steve weighs out the net effect of the bullish vs. bearish arguments to explain the likely target for the S&P 500 in the year ahead. (Spoiler Alert: It doesn’t look like tremendous gains. So those investors seeking more attractive returns are going to have to be much more selective in their stock picking in the year ahead.)
The trading plan for 2021 points out specifically the types of stocks that should do best next year. Namely that the winners from 2020 will take a back seat while a new group of stocks are ready to take the lead. Mostly that will be value stocks…many of which are the most beaten down groups from the Coronavirus like travel, leisure, entertainment and the like.
Steve warns that if you wait to long to get on board these “Back to Normal” trades for life after the Coronavirus…it will be too late. The time to start making those investments is now.
In fact, Steve has a hand selected group of 12 picks (9 stocks and 3 ETFs) that are perfectly suited for the current environment. To see these picks and get the full market outlook and trading plan, then click the link below to watch the presentation in full:
SPY shares . Year-to-date, SPY has gained 16.56%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
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