The next chapter in the ongoing saga of inflation took an optimistic turn yesterday, with the Consumer Price Index (CPI) rating coming in at 3%. Considering that it was 8.9% a year ago, it's a strong suggestion that we're heading in the right direction.
On top of that, the economy as a whole hasn't shown much sign of slowing down, which suggests that the recession everyone's been so worried about may not come to pass after all. Markets are responding in a predictable way, with all major indices up as I write this.
Anyone who's been following me for a while knows that I'm firm in my belief that we're in the beginning stages of a new bull market. Well, now, we've got one more data point in favor of that conclusion - for the first time in five months, the S&P 500 Equal Weight Index outperformed the normal index, which is weighted by market cap.
What that means is, we're starting to see broadening of support for a rally, and we're becoming less dependent on the so-called Magnificent Seven to see us through. That's great news for a bull market.
So now that things are trending in a good direction, I've gotten a lot of questions about whether it's time to shift gears, and if so, how. Everyone's been playing defense for a while now, looking for income plays, shifting their portfolios around to "recession-proof" industries, and piling capital into instruments like Treasuries or hard assets like gold.
Well, I'm here to say it: it's time to shift gears. As for how, I have the answer for you in this week's Buy This, Not That video, where I break down what profits to take now and where to reallocate them to get the most out of the current trend.
Check it out:
Tomorrow's going to be a big day, kicking off the next earnings season as major financial institutions report in. I'll have an in-depth look for you at how earnings reports could impact where the market goes next, and I guarantee you that there'll be a few surprises you're not expecting.
Keep an eye out, and I'll catch you then.
The post Stop Playing Defense and Grab the Bull Market by the Horns - Here's How appeared first on Total Wealth.
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.
The work he did laid the foundation for what would later become the 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 Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.