If you’ve been paying attention to the markets, you know that stocks are absolutely on fire in 2024. The AI boom has earnings soaring and the bulls are running wild. But there’s something strange happening beneath the surface that you NEED to know about.
Vic Lederman over at Daily Wealth just put out a fascinating piece. He notes:
a rare divergence is setting up in the market. But while it’s unusual, it won’t cause a collapse.
Vic Lederman
Vic is absolutely right. While the S&P 500 and Nasdaq are up huge, the Dow has been lagging way behind. Check out this chart:
Now, many so-called “experts” might look at this and tell you to run for the hills. But not us. As Vic explains:
This divergence isn’t a warning sign. It’s a signal to stay long… but to do it by owning the Dow instead of the S&P 500.
Vic Lederman
Folks, this is the kind of contrarian insight that separates the true market wizards from the herd. While everyone else chases the S&P and Nasdaq to unsustainable heights, you have the chance to scoop up the undervalued, underloved Dow stocks before they catch up to their peers.
Just look at the historical data Vic dug up. In similar situations, while the S&P returned a respectable 9.7% over the next year, the Dow absolutely crushed it with 11.6% gains! That’s the power of zigging while others zag.
Now, I’m not saying you need to dump all your S&P holdings today. As Vic wisely notes, “If you own the S&P 500, that’s OK. It’s not worth selling everything and swapping indexes.”
But what I AM saying is that you’d be foolish not to dedicate a portion of your portfolio to scoop up those juicy Dow stocks while they’re still cheap. This bull has plenty of room left to run, and the Dow is set to be the star of the show in the coming months.
So don’t miss this rare chance. Click here to read Vic’s full analysis, then get out there and start building your Dow positions today. Your future self will thank you when you’re counting your profits and gloating to all your friends who missed the boat.
