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WeekendWisdom
Tactics that Work in Good Markets and Bad
[Kevin Matras - Editor]
How to Double Your Stock Returns in 2019
By: Kevin Matras
March 30, 2019
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The market is off to a spectacular start this year. And what a start it's been.
Already, the Dow is up 11.28%, the S&P is up 12.69%, the Russell 2000 Small-Cap Index is up 13.82%, and the Nasdaq is up 16.12%.
But none of this should come as any surprise.
Given the robust economy, and the best jobs market ever, you can see why 2019 is expected to be a banner year.
So as an investor, you should be handily beating the market right now. And planning on crushing it this year. If not, now would be a good time to reflect on what you're doing right in the market, what you're doing wrong, and what you'd like to do better.
This includes patting yourself on the back for your successes.
Being honest with yourself for your failures.
And setting big goals for what you'd like to accomplish.
Like doubling your investment returns. (That's right, double!)
Think Big
It takes no more mental energy to work on a big goal than it does to work on a small one.
But the end results can be enormous.
Most people set their sights on small ideas because they don't yet know how they'll achieve them.
But in today's day and age, somebody has likely accomplished the very thing you've set out to do -- and left a roadmap on how to do it.
And that goes for the market.
There's also a phenomenal set of stats as a backdrop to suggest big gains are indeed on the way.
We have the perfect 100% track record of the market going up the year after midterms (on average of 17%). And that's this year.
And the recent yield curve inversion has historically shown a strong tendency for the market to move up sharply afterwards. In fact, looking at the last three inversions (1989, 1998, and 2006), the S&P soared afterwards with an average gain, from the first inversion to the ultimate high, of 35% over a 16-month average time span.
So there's a huge probability for a positive year this year, with expectations running high for something even bigger.
Continued . . . .
[Zacks' Top 4 Stocks for Q2](
There's still time to get in early on our just-released Ultimate Four. These aren't just 4 promising stocks. They were handpicked from hundreds of strong companies by Zacks experts because they present the greatest upside over the next quarter.
1. Sporting goods company fueled by hot products and a strategic partnership with Nike.
2. Recent IPO rounding up 8,000 customers like Google, IBM, eBay, and Uber.
3. High-flying "Great Outdoors" supplier with vast, untapped potential.
4. Software developer fresh off a rare earnings "beat and raise."
Deadline to download this Ultimate Four Special Report is midnight Sunday, March 31.
[See Stocks Now »](
Do What Works
So which stocks should move the most? Stick with tried and true methods that work to find the best ones.
This is part of the roadmap to success.
For example, did you know that stocks with a Zacks Rank #1 Strong Buy have beaten the market in 26 of the last 31 years with an average annual return of 25% per year? That's nearly 2.5 x the S&P. But when doing this year after year, that can add up to a lot more than just two and a half times the returns.
And did you also know that stocks in the top 50% of Zacks Ranked Industries outperforms those in the bottom 50% by a factor of 2 to 1? There's a reason why they say that half of a stock's price movement can be attributed to the group that it's in. Because it's true!
Those two things will give any investor a huge probability of success and put you well on your way to achieving your goals.
But you're not there yet, as those two items alone will only narrow down a field of 10,000 stocks to the top 100 or so. Way too many to trade at once.
So the next step is to get that list down to the best 5-10 stocks that you can buy.
Proven Profitable Strategies
Picking the best stocks is a lot easier when there's a proven, profitable method to do it.
And by concentrating on what has proven to work in the past, you'll have a better idea as to what your probability of success will be now and in the future.
For example, if your strategy did nothing but lose money year after year, trade after trade, over and over again, there's no way you'd want to use that strategy to pick stocks with. Why? Because it's proven to pick bad stocks.
On the other hand, if your strategy did great year after year, trade after trade, over and over again, you'd of course want to use that strategy to pick stocks with. Why? Because it's proven to pick winning stocks.
Of course, this won't preclude you from ever having another losing trade. But if your stock picking strategy picks winners more often than losers, you can feel confident that your next trade will have a high probability of success.
Stock Picking Secrets of the Pros
Once of the best ways to begin doubling your returns is to see what the pros are doing.
There's no one perfect way to beat the market. Some traders prefer high flying growth stocks, while others prefer deeply discounted value stocks. Some may prefer fast-paced momentum stocks, whereas others are more comfortable with mature, dividend producing income stocks.
Yet others may want to focus on more specialized strategies like insider trading (the legal kind), institutional buying and selling, large-caps, small-caps, stocks about to surprise, or cheap stocks under $10.
Still others may want to turn their attention to specific sectors or industries like healthcare innovators, biotech stocks, high-tech companies, or the burgeoning marijuana-related investment opportunities.
Or even incorporate options into their portfolio.
Regardless of which one fits your personal style of trade, just be sure you're getting the best advice from experts who have demonstrated their ability to beat the market.
The best part about these strategies is that all of the hard work is done for you. There's no guesswork involved. Just follow the experts and start trading like a pro.
Roadmap to Success
As you can see, there's a clear roadmap to success to help you achieve your goal of doubling your stock returns in 2019.
No need to reinvent the wheel. The path has already been created. Now it's just about doing it. And once you decide to do something, it's amazing how often those decisions come true.
And just like anything, it only requires a few simple steps to get the ball rolling.
Where to Start
One of the best ways to turn the probabilities of success in your favor is simply to see what the pros are doing.
The beauty of this approach is that all of the hard work is done for you. There's no guesswork involved. Just follow the experts and start trading like a pro.
Targeting Big Returns in Q2
Today you're invited to [download our just-released Special Report, Zacks Ultimate Four.](
These aren't just 4 good stocks. They were hand-picked by our experts to have the greatest upside growth potential in the next quarter - which is already set to ride the tailwinds of a strong economy, fantastic jobs market, and an accommodative Fed.
Stock #1: Earnings are booming for this mid-cap sporting goods company, fueled by relentless demand for their products and a strategic partnership with Nike.
Stock #2: A recent IPO, this data management company is already showing hyper-growth with customers like Google, IBM, Uber, M.I.T., eBay, and 8,000 others.
Stock #3: "Great Outdoors" supplier, soaring far above the 2019 market, still has vast, untapped potential with loyal customers and new products to serve them.
Stock #4: Software developer beat earnings estimates for the quarter and raised guidance for the next 3 months, a rare double indicator for future success.
I suggest you download this Special Report now because the opportunity ends Sunday, March 31.
[Look into our 4 top-potential stocks today »](
Thanks and good trading,
[Kevin Matras - signature]
Kevin Matras serves as Executive Vice President of Zacks.com and all of its leading products for individual investors. He invites you to [download the newly released Ultimate Four Special Report.](
¹ The results for the trades listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through February 4, 2019. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank # 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit [( for information about the performance numbers displayed above.
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