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The One Indicator That Proves You Should Buy Stocks Now

The One Indicator That Proves You Should Buy Stocks Now

FromHypergrowth Investing


The One Indicator That Proves You Should Buy Stocks Now

FromHypergrowth Investing

ratings:
Length:
63 minutes
Released:
Jan 25, 2023
Format:
Podcast episode

Description

Since the start of the new year, the overall market trend has greatly improved, and the past few days have been no exception. The market has seen a significant and sudden increase in price action, with stocks no longer declining as they were in 2022. While stocks played a stubborn game in 2022, this year, they refuse to go lower. Best of all? Technology and growth are driving the ongoing stock market boom in 2023.So why the sudden shift? Well, it seems that the consensus view in the market has finally aligned with the one we've had since November. Inflation is crashing hard, the Fed's rate hikes are nearly over, and the economy will likely avoid a deep recession. With this as the consensus, more investors are rushing to buy the dip in risk assets.And if you want to gauge the market's risk-on appetite, just take a look at the crypto markets. Bitcoin (BTC-USD) started the year at $16,500 and popped to $21,500 over the weekend – up a whopping 40% year-to-date. Several major altcoins have doubled in that same time. This is the type of price action you only see when new bull markets begin.We are highly constructive on what we’ve seen so far. This is likely Year 1 of a multiyear bull market. Get ready for those gains.So, the current price action in the market strongly suggests that we're seeing the arrival of a new bull market. And last week, this price action triggered a bullish indicator known as the Breakaway Momentum indicator.This indicator measures the ratio of the total number of stocks that were advancing over the past 10 days to the total number of stocks that were declining in that time. When that ratio is roughly above 2, meaning the number of advancing stocks is double the number of declining stocks, the Breakaway Momentum indicator is triggered.This has only happened a handful of times over the past 70 years, but every time it has, stocks were higher six and 12 months later. And similarly, nearly every time this breadth thrust indicator is triggered, it's been when a bear market is ending and a new bull market is beginning.In short, current price action indicates that a new bull market is forming right now. As always, remember that price is truth. So, keep an eye out for any new developments in the market. For us, one emerging development we're bullish on is quantitative finance. Hypergrowth Investing is no stranger to AI. We’ve talked about its impact on several industries in previous episodes, even when it comes to the future of stock picking. We’re confident that eventually, AI and other quantitative approaches will dominate most money management and financial market strategies. Investors with fantastic track records and decades of experience picking stocks are few and far between. And access to these folks is very limited. But in the future, we will have access to AI tools and quantitative systems that allow us to be the best investors we can be – by removing emotion from decision-making and following the data.The stock market is a veritable treasure trove of data. And with the advent of machine-learning algorithms, it's becoming a powerful tool for investors. In the next few years, it's expected that most investors will turn to quantitative trading systems, powered by AI, to gain an edge in the market. Those who embrace this technology will have a significant advantage over those who don't, and will be able to make more informed and profitable trades.That’s why our team has spent the past year developing a quantitative trading system to inform our investment strategies. We are using this quant tool to scan the market for the most high-quality breakout stocks. And by implementing machine-learning algorithms, we aim to create a robust system that helps us to greatly outperform the market.Learn more here: https://bit.ly/3kpWXUTWatch the full episode of Hypergrowth Investing above.?Timestamps?00:00:00 - Intro00:02:35 - Stock Boom00:08:00 - Breakaway Momentum00:20:15 - EV Price Cuts00:24:00 - Let's Talk Davos00:31:15 -
Released:
Jan 25, 2023
Format:
Podcast episode

Titles in the series (65)

Hypergrowth Investing is a weekly podcast that picks the brain of investment analyst Luke Lango. Each week Luke will take an in depth look at the trending tech and investment innovations. Electric vehicles, cryptocurrency, the metaverse, nothing is off limits in this innovative new podcast!