Dear Friend,
You may not know his name. You may not know how he made his fortune. But the man who The New York Times says once made an estimated $100 million in a single year after predicting the stock market crash of 1987, recently stunned investors with a bold prediction.
In an interview with CNBC's Squawk on the Street, Paul Tudor Jones II, a contrarian investor who studies macro-economic trends like interest rates and unemployment, says that he believes the Fed is done raising rates, and stocks will finish the year higher from here on out.
He believes with key economic indicators like the Consumer Price Index (CPI) declining for the last 12 months – which has never happened before in history…
…And with the Federal Reserve's key inflation gauge, the Personal Consumption Expenditure Price Index (PCE) declining 26% since December 2022, we are possibly entering a turning point for stocks.
Mr. Jones also said that he believes the market setup right now is similar to mid-2006 before the global financial crisis, where stocks moved higher for over a year after the Fed stopped tightening monetary policy.
And he may be onto something.
Because according to Charles Schwab, since 1970, after each of the last rate hikes by the Fed, the S&P 500 Index posted a gain of almost 15% on average over the next 12 months.
And based on this historical data, plus the fact that Federal Reserve chairman Jerome Powell has recently indicated that the Fed may pause interest rate hikes soon due to various economic levers ...
It makes sense why now may be the ideal time for many investors to start investing again.
And here's the thing…
It's not just Tudor Jones who believes this either. Famed Wharton professor, Jeremy Siegel has also stated recently that long-term investors should "absolutely buy now."
And not only that, but The Motley Fool's own proprietary signal is also flashing BUY.
So, if you're an investor who has been waiting for a signal to enter the markets again, THIS IS IT.
And, if you're wondering about which stocks you should be investing in right now, we have even more great news for you.
Yahoo recently reported that one of Mr. Jones' top stocks is also a stock we've recommended at least 13 times over the years!
Heck, according to Yahoo, one investor has bet a whopping $753 million on this stock's success.
And if you're interested, you can add it to your portfolio today by becoming a member of The Motley Fool Stock Advisor. Our team's average stock recommendation is up +422% to date, and it's crushing the S&P 500 by 3.5X.
So, with buy signals like this, I urge you to at least start getting your ducks in row now BEFORE the market eventually takes off.
Click the link below to learn more and to become a member of Stock Advisor today.
Take me there!
Sincerely,
The Motley Fool Team
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