Dividend Investing Weekly: The Bulls Have Reason to Believe

You are receiving this email because you signed up to receive our free e-letter Dividend Investing Weekly, or you purchased a product or service from its publisher, Eagle Financial Publications. [Dividend Investing Weekly] [Cash Machine]( [Quick Income Trader]( [Breakout Profits Alert]( [Hi-Tech Trader]( The Bulls Have Reason to Believe by Bryan Perry Editor, [Cash Machine]( 05/20/2024 Sponsored Content [The Crypto bull market is just beginning]( Right now is an incredible time for cryptos. Forbes said it's the "most positive outlook in three years." I believe we are in the early stages of a bull market. [And my research has led me to a handful of tokens that I believe are going to benefit the most.]( As some market bears are shouting “Dow 40K and go away,” it should be noted that the current bull run for stocks is anything but a Magnificent-Seven-led rally. Far from it. There are three primary catalysts for why the market is trading at current levels and why it has the potential to further its gains right into the second-quarter reporting season. First, core inflation finally showed some signs of a cooling trend developing. The change month-over-month in Consumer Price Index (CPI) was a genuine relief following two months of hotter-than-forecast consumer inflation. For April, core CPI was up 3.6%, down from 3.8% in March and also in-line with market expectations. The disinflation in April is still only a small step toward the Fed's 2% inflation target, which will leave the Fed firmly trenched in a wait-and-see mode, as voiced by several Fed officials last week. And yet, it was a bullish catalyst for market sentiment. [Act Fast to Lock in Annual Returns of 11.1% For Life – Guaranteed!]( If investors [act fast enough](, they can LOCK IN a regular source of extra income with annual returns as high as 11.1%, guaranteed for life. 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The bond mavens are sensing that, regardless of the higher-for-longer Fedspeak being touted on the speaking circuit, there are early signs of the consumer showing more discretion based on the soft April retail sales data (0.0% versus 0.4% estimate) and the very low reading for the University of Michigan Consumer Sentiment Survey for May (67.4 versus 76.5 estimate). Per the Briefing.com analysis, “The key takeaway is that the downturn in sentiment was driven by decreases across age, income and education groups, and revolved around worries pertaining to inflation, unemployment and interest rates.” The yield on the 2-year Treasury has fallen from 5.04% at the end of April to 4.82% as of Friday, May 17, and the 10-year Treasury yield has slid from 4.74% to 4.42% over the same period. The direction of the bond market almost always leads the direction of monetary policy. Even as shelter, food and energy prices remain elevated, the previous Non-Farm Payrolls report for April (175,000 versus 250,000 consensus) set the current bond rally in motion that has been a bullish game changer for stocks. [From Financial Fear to Good Fortune]( Jerome Powell just made buying a home more challenging, and the Magnificent 7’s momentum is collapsing. If these headlines don’t grab your attention, then you’re asking yourself when the FED will start cutting rates. With so much uncertainty, may I suggest an alternative strategy to just hoping…a method to enhance what you’re currently doing with more precision and confidence. [Learn the top 3 stock trends]( we’re looking at right now for explosive bullish potential. Third, the market rally is showing improving breadth as evidenced by the consistently strong advance/decline line, where the most recent trading sessions are showing three-to-one and four-to-one gainers over losers. This is quite possibly the most vital component of the current rally as it demonstrates the market is enjoying widespread sector participation and not just the kind of narrow leadership that represented the first half of 2023, when the Magnificent Seven led a market where most sectors lagged. The recent development of well-defined market breadth is a strong technical underpinning for the bull trend to remain in place over the intermediate term, say into Q2 reporting season, that would run through the month of July. That is about as far out as one can forecast at this time, given the nature of how quickly the data and sentiment can change. For the present time, investor confidence has rebounded with Bank of America's global fund manager survey showing that bullish sentiment among money managers is now at its highest point in more than two-and-a-half years, as 82% of investors expect the U.S. Federal Reserve to start cutting rates in the second half of 2024 and 78% expect two, three or more rate cuts in the next 12 months. The Atlanta Fed GDPNow estimate for the second quarter has come down from 4.2% a week ago to 3.6% as of May 16. This probably reflects some implied slowing of future consumer spending and coming off the boil of what has been several quarters of robust consumer spending that has contributed to persistently higher inflation, thanks to a strong labor market driving demand. That perception is changing, and with it the notion of a soft landing taking hold of market sentiment, which has both professional and retail investors feeling better about their prospects for further stock market gains. Sincerely, [bryan-perry-sig] Bryan Perry Editor, Cash Machine Editor, Premium Income PRO Editor, Quick Income Trader Editor, Breakout Options Alert Editor, Micro-Cap Stock Trader About Bryan Perry: [Bryan Perry]Bryan Perry specializes in high dividend paying investments. This weekly e-letter combines his decades-long experience in income investing with a simple, easy-to-read format that investors of all stripes can work into their portfolios. Bryan also serves as Editor of these services: [Cash Machine]( [Premium Income PRO]( [Quick Income Trader]( [Breakout Profits Alert]( [Hi-Tech Trader]( and [Micro-Cap Stock Trader](. About Us: Eagle Financial Publications is located in Washington, D.C. – only a few blocks from the Capitol. Our products have been helping investors build their wealth for several decades. 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