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Right now, our market (in whatever terms you measure or define it) has a huge bid under it.
When traders refer to a "bid" under the market, they're referring to buyers in the wings who are ready to buy something at the posted price or a slightly lower price.
Bidders in the wings can have orders to buy down with their brokers, poised at the ready on a trading platform, or even wait until they get a whim, watching for the right price or feeling to hit them.
What does this mean for the market as a whole? It will go a LOT higher.
It's easy to make money if you see the big picture, if you can see which way the market is going. Let's forget about individual stocks for now… there's only so much success you can have in the stock market if you are unable to step back and see it for what it truly is.
In truth, the market's been going up steadily since 2009. It will continue going up, and I can prove it by sharing what I understand of the big picture.
I'll paint for you a stellar background, a clear middle ground, and a compelling foreground.
The Persistent Push Higher
Let's start with the background that everything else is resting on.
There's an extraordinary supply and demand equation driving stocks higher. The math is simple.
On the supply side, there are fewer companies and continually fewer shares of stocks to own.
The number of listed companies on U.S. exchanges peaked in 1998 at 7,562. Wilshire Associates says, as of August 2016, the number of listed companies is now only 3,659… that's a drop of almost 52%.
The Wilshire 5000 Total Market Index, once a definitive barometer of the total market, hasn't had 5,000 companies in its index since Dec. 29, 2005.
Meanwhile, listed companies have been buying back their outstanding shares at a furious pace.
From 2002 through 2012, U.S. companies bought back $2.4 trillion worth of their own shares, according to the Harvard Business Review. Over the next four years, companies bought back almost $5 trillion worth of their shares.
We also have more capital being created every day. Whether the capital is created from earnings, or from central banks printing trillions of dollars' worth of the stuff, there's more of it every day.
More and more capital chasing fewer and fewer shares is the ultimate signal for the market to go higher. That's the backdrop that composes the rest of our big picture.
A Landscape of Interest Rates
In the middle ground, we see the interest rate come into focus.
As far as anyone can tell, interest rates are going to remain low for as long as central banks can contain them. They were driven down globally to supply liquidity for the world's ailing banks and economies.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of 10X Trader, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade.
Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps.
Shah is a frequent guest on CNBC, Forbes, and Marketwatch, and you can catch him every week on Fox Business's "Varney & Co."
He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.