STOCKS GO UP MOST IN MONTHS! WHY I'M BULLISH!
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I just got back from vacation less than 10 minutes ago when I said I got to record a video I got to hop on YouTube right now, we got to talk about this big rally in the stock market here today, bank stocks had their best day in months, literally every single stock.
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I own was green today, that’s when you know, it’s a good day when you own multiple stocks, and every single one of them is green, phenomenal day out there, we got to talk about all this, we also got to talk about what is going to happen over the course of the next let’s say six months for the remainder of the year.
And kind of like what I see out there. I also want to talk about some hidden things that are going on out there that not a lot of people pay attention to some numbers here that I’m gonna share with you that are some it’s a really bullish sign.
Let’s just put it that way, guys. So today to talk about, by the way, for the remainder of the month of July, I am having half off my stock market membership group. So make sure you get in there if you have not already I don’t care if you’re a beginner investor.
If you’re an advanced investor no matter what if you want to take stock market investing up to the next level, make sure you get in that group enter code half off in the coupon box at checkout and literally will take half off your first month and every single month after that guys.
So I cannot wait to see you guys in there. Let’s get into this Dell rallies more than 300 points as banks post best day since late March. All right, we’re in July now. So it’s been quite a while since banks have this good of a day stocks closed sharply higher on Monday.
As Bing shares rose while concerns over a trade war between the US and key partners dissipate it for the moment the Dow was up around 320 points JP Morgan Goldman Sachs Caterpillar with some of the best performing stocks.
The Nasdaq rose almost a percent Amazon Netflix Apple, those type of stocks all had good days there. The banks was the big one today, okay, the market can surprise you with what it’s focused on now.
Now we’re focused back on fundamentals as seen so if you guys already know like, basically we’ve been so focused on the US China trade war in this whole trade war crap, and it has held back the stock market in a huge way because companies have been really releasing phenomenal earnings. Okay.
The amount of companies beating numbers handily is off the charts. Okay, companies are having phenomenal earnings right now. And yet the stock market’s kind of been this like 24,000 range and it’s like, why are we not much higher? Okay.
When you look at the four Ps the four Ps are starting to get really low now and you’re like look at growth, anthing up and it’s like what is going on? Basically the US China trade wars just held things back in now if that can start to take a bit of a backburner then we can resume in a big way upward okay.
As long as that takes a backseat because everybody gets so worried all these fund managers oh my gosh us China trade war what’s going to happen what’s going to happen here if that can just take a backseat and those worries can kind of subside for a while you know.
The market can start its trajectory upward once again Okay, now there always be something out there that they’re pointing to and you know, be worried about or whatever, but I’m telling you this us China trade wars held things back in such a big way for the markets and for almost all stocks out there.
If we can get rid of that. Then you know, we can we can get up in a big way. Okay. I want to show you guys something here. All right. homeowners are sitting on a record amount of cash and not tapping it Okay, a record amount of cash.
Us homeowners today are getting richer by the minute, but they are less likely to cash in on their newfound wealth than during previous housing booms. As home values rise home equity lines of credit often used to tap.
Home Equity are flatlining and the overall amount of money people are taking out of their homes is shrinking the collective amount of so called tappable equity, which is appraised value of the home minus the 20%.
Most lenders require borrower borrowers to keep as a safety net grew by 7% in the first quarter this year compared with the previous quarter According to blacknight, a mortgage software and analytics company.
This is the largest single growth quarter since the company began tracking it in 2005. It is up 16.5%. Compared to a year ago, homeowners now have a collective 5.8 trillion $5.8 trillion in tappable equity, the highest volume ever recorded in 16%.
Above the last home praise peak in 2006. The average homeowner with a mortgage of $14,700 in tappable equity over the past year and has $113,900 available to draw. This is a mount over the 20% of the value of the average home out there guys.
Nearly 80% of tappable equity is held by homeowners whose current mortgage interest rate is below 4.5%. And 60% is held by borrowers who rate is less than 4%. All right, the average rate on the 30 year right now is around 4.8%.
Alright, so this is this is a kind of a secret hidden good news out there. And then we’ll kind of get into what I foresee is kind of, you know, the coming months for the rest of this year in the stock market and whatnot.
This is really good news because what this means it means homeowners are being much more cautious than they have been in the past, which in my opinion is a very good thing. Okay? if everybody’s just trying to get as much Credit is possible and trying to tap into their home equity and whatever.
I think that’s sometimes a scary sign and a bad sign if everybody’s trying to do that at once. The fact that right now you have a record amount $5.8 trillion out there as capital equity in home just means people are much more cautious.
And it just means people have many more demons inside them from the last recession. They’re scared out there. And I hear it all the time for people, you know, people just worried, Oh, my gosh, you know, my house, my house is up quite a bit right now.
But I’m wondering if I should sell it or not sell it, because because, you know, maybe something had happened. Again, I think this is actually a really good thing. Okay. I think when everybody’s bullish, and everybody’s just thinks, you know, housing prices gonna go up to infinity.
We can take out lines of credit, we can, you know, just be crazy. And whatever, I think that’s a scary time. That’s what I start to worry. And I say, oh, man, maybe something is gonna come.
But when people are much more cautious out there, when people are, you know, a little scared to take risks. That’s actually what I love it, because it just means, you know, everybody just kind of you know, is on the sideline right now and not being too crazy.
I think that’s a really good thing, especially for the average consumer. As we know, the average person out there is not, is not very intelligent when it comes to the financial markets, okay, whether it be you know, real estate investing, stock market investing, like pretty much the average person out there knows virtually nothing.
So the fact that they’re, you know, on the sidelines right now, and they’re, they’re not going crazy with this type of stuff, I think it’s a really good sign for the markets overall. Okay. Now, let’s get into kind of where I see the market is going for the rest of the year.
So you know, I hate making short term predictions. I hate making short term predictions. As you guys know, I’m a long term investor in companies. But as I look out over the next, let’s say, five, six months, the remainder of this year.
I’m extremely bullish on the stock market as far as its trajectory. The reason being is we’re going to have strengthening earnings into the rest of this year. Okay, I see much more strengthening earnings.
Also, another big thing I think I see is I think the US economy is going to have some of its best growth we have had in decades, okay, literally, in decades, I think we’re gonna have some of the best growth in the United States of America.
We have had in decades now we could talk about China and Europe and how those markets are gonna grow. Who knows what some of those markets, but when I just look at the United States, I see some of the strongest growth we have literally had in decades coming in the back half of this year. Okay.
I think that’s a really, really bullish sign for US equities. And especially a lot of companies that do the majority of their business, you know, in the domestic markets. Now, some companies that maybe are more internationally spread out.
Maybe some of those companies won’t see as big a growth, but a lot of these domestic plays, I think, are going to have really strong growth going into the rest of the year. I think bank stocks is a big opportunity.
I think buying stocks, you should be a you know, one of the best performing sectors out there for the remainder of the year, we have so much going for the banks right now. strong economic climate, okay, very strong economic climate.
We have interest rates going up, that means the banks are going to make a lot more money. Okay. Also, on top of that, we have a situation where a lot of these banks have insanely low 40s among many of the banks right now have low for peace, like we’re talking like 10 or below, okay, extremely low 40s.
We are in an we’re in a situation where the the government is now trying to ease back some restrictions on these banks. Okay. So basically what happened is prior to the Great Recession.
We had banks that went too crazy. Okay, and they gotten into a lot of trouble, then, you know, we kind of had Obama come in and whatnot. And they had, they had, you know, really tighten things up with the banks. Okay.
But maybe they tighten things a little bit too much. All right, because, you know, one way it was too crazy. The other way was too tight. Now, we’re trying to find that perfect balance in there.
When you have a little direct regulation in the banking sector that can produce from much higher earnings. Okay, actually, one of the people that have you guys ever seen the movie The Big Short, okay, The Big Short.
The main guy who was behind the whole shorting of thing stocks back then and whatnot, that same guy is actually going long the financials, now he has been for the last year, he’s been going long financials, okay, meaning along the banks, because he sees interest rates going up.
That’s a really good sign. And also deregulation, for banks. That’s a phenomenal sign as well. So just something interesting to pay attention to there, guys. So I think it should be a real strong back half of the year.
We’ll just have to see, you know, you know, can the US China trade tensions is that just going to keep, you know, kind of getting in our face, eventually, what ends up happening, what I found with a lot of things, is these trade tensions they get talked about and talked about, and they get thrown in your face thrown in your face.
And every time you open up the CNBC app or any app out there, it gets thrown in your face, it’s like oh, my gosh, trade tensions. Eventually what ends up happening is people start you know, kind of pushing that to the side and they like.
We’ve seen the story over and over and over and over again. Okay, whatever. And until you start seeing those, you know, the economic numbers really get hit until you start seeing anything like that.
It’s like okay, this is just a bunch of malarkey. This is a waste of my time. Let me get out of that. So that’s what ends up happening guys. I’m really bullish. As you guys know, especially for the back half of this year.
I think it’s gonna be a really, really strong back half. We’ll just have to see. We’ll just have to see. Regardless, I own a lot of great companies that you know, should be doing phenomenal for years and years to come.
So let me know in that comment section what you guys think is going on out there in the stock What is your forecast for the remainder of this year I would love to hear from you guys. As always make sure to get my stock market membership group first link down there in the description.
Make sure you enter code half off at checkout to receive half off the first month and every single month after that. I can’t wait to see you guys in there as you take the stock market up to the next level Vig you for watching. Have a great day.