I hope you enjoyed the holiday! I was happy to take a break from the market gyrations and spend time with family and friends.
It is strange to say that we are now at the end of 2024. And anytime we reach the end of the year, it's always a good idea to do a little portfolio housekeeping.
The reality is the market should do well in the New Year, aided by the "January Effect."
The January effect happens when folks pour new funds into the market. Whether it's a bonus from work or a New Year's resolution, it's a phenomenon that happens year after year.
But perhaps the biggest contributor is simply the fact that large fund managers tend to rebalance their portfolios at the beginning of the year. They all have performance benchmarks they want to meet in the New Year, so they tend to load up on top performers when they rebalance.
What's interesting about the January effect is that it's more noticeable with small-cap stocks. What's more, not every January effect is the same.
Still, while not every year is the same, stock prices do tend to rise in the first month of the new year.
This means it's even more important now that your portfolio is positioned to benefit from the potential future strength. And that's where my Stock Grader (subscription required) can help. Each week, my system interprets reams of financial data and outputs those results in easy-to-interpret letter grades.
And in today's Market 360, I want to share 10 stocks you should consider selling before we open the books on 2025. Stock Grader recently flagged all these stocks as very weak. Take a look below; some of these names might surprise you...
Each company on this list received a "D" or an "F" rating in my Stock Grader. So, as we come up on the New Year, it is critical to dump stocks like this from your portfolio. If you want to make real money in the markets, you likely won't do so with any of the stocks I listed above.
The truth is that next year it will be every stock for itself, which means that companies with strong fundamentals and earnings growth should emerge as the market winners...
So, I encourage you to use the final trading days of 2024 to ensure that your personal portfolios are fully invested in fundamentally superior stocks.
Now, if you're not sure where to find fundamentally superior stocks, then look no further than my Growth Investor service. In this particular service, I have two Buy Lists: High-Growth Investments and Elite Dividend Payers. And both of these Growth Investor Buy Lists are chock-full of fundamentally superior stocks.
In fact, looking back at 2024, my High-Growth Investments list jumped 37%, and my Elite Dividend Payers grew around 23%, as I write this. This compares to the S&P 500's 24% gain, the Dow's 14% jump and the NASDAQ's 30% rise, respectively, as I write this. Clearly, my Buy List stocks are the crème de la crème.
So, if you want to make sure your portfolio is filled with the crème de la crème, fundamentally superior stocks, then join me at Growth Investor today. You'll receive instant access to all my Buy List stocks, as well as all my Growth Investor Monthly Issues, Weekly Updates, Special Market Podcasts - and much more.
P.S. I've been around the market for more than four decades now. The fact is that stocks tend to have seasonal cycles throughout the year. However, some of the well-known seasonal patterns have more validity than others...
That's why I'm so excited about the latest research from our partners at TradeSmith.
You see, their whole mission is to help investors make better decisions backed by rigorous statistical analysis. And it all started with a seemingly impossible mandate from TradeSmith CEO Keith Kaplan.
"I want you to look at every stock in the Dow, NASDAQ and S&P 500... and find the optimal day to buy each one."
And after running backtests on more than 2 billion data loops on 5,000 different stocks... dating back to 1991... the end result is a simple tool that can help you know down to the very day when the best time is to buy or sell any given stock.
Now, when the New Year rolls around, the folks at TradeSmith are hosting a webinar on the strategy. You can sign up here for it now.
But here's the best part...
They've set up a website where registrants can run their stock tickers through their tool for free.
I encourage you to try it for yourself.
This unique tool will display consistent historical patterns coming up that can help you make informed decisions about stocks on your watchlist, stocks you already own, or ones you're just now exploring.