These Are NOT Signs of the Top

Folks are looking for safety today. And that tells us we're nowhere near a market top... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] These Are NOT Signs of the Top By Brett Eversole --------------------------------------------------------------- Stocks have been soaring for nearly two years. But if you think investors have gone "all in" on stocks, you'd be dead wrong. Instead, folks are looking for safety. We know this because they're buying bonds much faster than stocks... And they're piling up cash at the highest levels in history. This isn't what happens near a stock market top. And as I'll explain, it shows why this bull market has much further to run... --------------------------------------------------------------- Recommended Links: [Must See by Midnight: Use KO241220P60 to Collect $360 Instantly]( But first, claim a 30-day trial of our most successful research service, Retirement Trader. Former Goldman Sachs trader Dr. David Eifrig shows you how to collect thousands of dollars a month... without touching any conventional investments up front and with a 94% success rate. [Click here by midnight tonight for the details](. --------------------------------------------------------------- [If You Own Any Stocks in 2024, Read This IMMEDIATELY]( Wall Street titan Marc Chaikin predicted 2023's bank crisis five months in advance. He also predicted last year's bull run when everybody was expecting a recession. Now he's sounding the alarm on what's coming NEXT for the stock market, based on a signal with 100% perfect accuracy across more than 80 years of historical data. [Click here for the details (including a free recommendation)](. --------------------------------------------------------------- When investors pour everything into "risk on" investments, it usually means a top is close. That's what we saw in 2021. Folks were getting rich in speculative stocks, cryptos, and non-fungible tokens. Hardly anyone expected the fun to stop. It did, of course. It always does. That kind of excitement is a classic sign of a top. Today, despite an incredible run-up since the 2022 market bottom, we're nowhere near that level of hype. We can see this in two ways... First, investors aren't pouring money into stocks this year. According to data from the Investment Company Institute ("ICI"), they're buying safe bonds at much faster rates. ICI is a trade association for the investment-fund industry. It tracks the weekly inflows and outflows for stock and bond mutual funds as well as exchange-traded funds ("ETFs"). This year, investors put a net $20.5 billion into U.S. stock mutual funds and ETFs. But that pales in comparison to the net $207 billion that went into bond mutual funds and ETFs. Folks have poured more money into bond funds each month than they put into stock funds so far this year... And they've invested 10 times more in bonds overall. Clearly, people like the idea of owning safe assets right now. And that makes sense. Bonds currently pay a hefty yield, unlike what we saw in the prior decade. The unusually high yields on safer assets also explain our second signal... Cash is piling up on the sidelines. The easiest way to see this is through money-market assets. Specifically, we're looking at retail money-market assets, which are effectively excess amounts of cash held in brokerage accounts. This figure began rising in mid-2022 alongside interest rates. And it has nearly doubled since then. Take a look... When folks talk about "cash on the sidelines," this is what they mean. These assets have grown by nearly $1 trillion in a little more than two years. And they're now approaching $2 trillion in total. This is not bubble behavior. If investors were head over heels for stocks, they wouldn't be piling up cash... They'd be dumping their cash holdings to buy speculative assets. Instead, folks are still nervous. And they're happy to earn a risk-free 5% yield in money-market funds as a result. This is great news for the bull market that's underway. It means the rally is still in its early innings. Eventually, these high levels of cash and bonds will fall. Investors will throw caution to the wind to chase higher returns... leading to the final stages of the boom. We're not there yet. And that's why it's a smart idea to stay long stocks today. Good investing, Brett Eversole Further Reading Even though more folks are looking for safety in the market, investors are beginning to dabble in risk. The start of a "risk on" market is good news for stocks. And it's a healthy development for the current bull run... [Read more here](. The market's "fear gauge" recently hit its lowest level in a while. Some folks might think this is a bad omen. But history shows similar periods of calm have led to outperformance over the next year... [Learn more here](. --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers' feedback. To help us improve your experience, we'd like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. If you no longer want to receive e-mails from DailyWealth [click here](. Published by Stansberry Research. You're receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com. 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