Regular Investors Hate Stocks... And That Gives Us 25% Upside Potential

Mom-and-pop investors want nothing to do with stocks based on this measure. But that's fantastic news for us... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] Regular Investors Hate Stocks... And That Gives Us 25% Upside Potential By Brett Eversole --------------------------------------------------------------- "You want to buy when there's blood in the streets..." The saying is a standby for investors. But it's tough to follow in practice. It means that the best opportunities appear when times are tough... and when no one else is interested in putting money to work. That was the case in the second half of 2022. Investors have been darn scared – and for good reason. Last year was the worst year for stocks since 2008. By now, though, the fear has gotten so widespread that a bottom is likely near. That's what a specific sentiment reading is telling us, at least. Mom-and-pop investors want nothing to do with stocks based on this measure. But that's fantastic news for us – because similar setups have led to massive 25% gains a year later. Let me explain... --------------------------------------------------------------- Recommended Links: [Huge Recommendation at 10 a.m. Eastern Time Today]( The man who nailed the 2020 and 2022 crashes will explain why a rare event is coming to stocks this year... and how it could open the biggest moneymaking opportunity in 20 years. You could have doubled your money 34 times with his picks, so be sure to grab his FREE recommendation for 2023 as soon as it begins. [Click here by 10 a.m. Eastern time for details (includes a free recommendation)](. --------------------------------------------------------------- [The No. 1 Gold Play for 2023]( Some of the richest men in the world are jumping into gold right now... because evidence suggests we could see MUCH HIGHER prices in the coming weeks. But if you're not taking advantage of a little-known way to invest for around $5 today, you're missing out. [Click here for the full details](. --------------------------------------------------------------- TD Ameritrade is one of the largest brokerages in the U.S. The company has more than 11 million individual accounts totaling $1 trillion-plus in assets. The brokerage analyzes its clients' accounts to create an index. Mom-and-pop investors make up a good chunk of those accounts... So by looking at what regular folks are doing with their money, TD Ameritrade has built a powerful sentiment gauge. It's called the Investor Movement Index ("IMX"). It includes data like account holdings, position changes, and trading activity. And each month, the index tells us if regular investors are bullish or bearish. Like most sentiment indexes, though, this is a contrarian tool. When the IMX reading is low – and investors are scared – we want to consider buying. And that's exactly where we are right now. Take a look... The IMX crashed throughout 2022. And it hit its lowest level of the year in November and December. That was also one of the lowest readings since the index began in 2010. And in the past, similar lows have proven to be solid buying opportunities. To see this, I looked at each time the IMX hit a new low at today's level or lower. Here's how stocks performed after those setups... These are downright impressive numbers. Stocks have jumped 11% in a typical year since this index's data began. But buying after setups like today's crushes that return. These cases led to gains of 13.7% in three months, 23.5% in six months, and 24.7% over the following year. That's nearly five times better than the typical six-month gain and more than double the typical annual gain. Make no mistake... We just finished one of the toughest years of our lifetimes. Mom-and-pop investors are scared as a result. And that's a bullish sign for us as contrarians. Simply put, we have good reason to expect a 2023 recovery in stocks. Don't get caught on the sidelines and miss it. Good investing, Brett Eversole P.S. If you're planning your next moves this year, make sure you catch my colleague Greg Diamond's online event this morning. His unique way of tracking the markets is pointing to a huge shift ahead. You'll hear exactly when he expects it to happen... And you'll even find out his No. 1 investment for 2023. The discussion starts at 10 a.m. Eastern time... [Watch for free right here](. Further Reading "Instead of taking advantage of lower prices, most people expect the worst," Brett says. Folks tend to be fearful when the opportunity is best. And that kind of fear is stacking up today. Recently, another signal showed that consumers are incredibly bearish right now... [Read more here](. "Mom-and-pop investors are pulling massive amounts of savings out of equity mutual funds," C. Scott Garliss writes. Investors are moving their cash to the sidelines. But importantly, that means we could see a major boom this 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@stansberrycustomerservice.com. Please note: The law prohibits us from giving personalized investment advice. © 2023 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 or [www.stansberryresearch.com](. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Stansberry Research does not recommend or endorse any brokers, dealers, or investment advisors. Stansberry Research forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Stansberry Research (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.