Chief Investment Strategist, The Freeport Society
Charles’s Note: We live in an Age of Chaos, where investment success relies on agility and adaptability. Understanding this, Freeport Society friend and tech investing expert Luke Lango dedicates his time to helping people like you invest confidently in market booms and market busts. Tomorrow, at 1 p.m. ET, he’s going to explain his newest strategy – which he calls Auspex – in a free broadcast. Sign up here now so you can see how his new system works, why it works, and how you can implement it in your investment strategies.
For today, I’ve asked Luke to share with you why this is the perfect moment in history to get on board with the Auspex strategy.
It’s time to embrace a new six-word mantra…
Embrace the boom… Beware the bust.
Since Donald Trump’s victory on Election Day, the S&P 500 is up about 5%, the Russell 2000 index of small-cap stocks is up about 6%… the tech-heavy Nasdaq-100 has gained about 7%… and Bitcoin is up about 25% – reaching its all-time high of more than $100,000 recently.
From deregulation to tax reform, Trump promises to reshape the U.S. economy through pro-growth policies. Those promises are stirring investors’ animal spirits… and so the market will likely continue surging higher in the early days of his administration.
Embrace that boom.
Of course, there are some issues to worry about for a Trump administration (and a turbulent world, which my colleagues over at The Freeport Society believe is the result of the Age of Chaos).
For one, an across-the-board 20% tariff would cause extreme disruptions, especially to American firms that manufacture products abroad.
And Trump’s selection of Robert F. Kennedy Jr. as the next head of the Department of Health and Human Services (HHS) injects enormous uncertainty into the biopharma industry.
Meanwhile, the rest of the world remains unpredictable and volatile.
The fall of the Assad family in Syria.
China deploying the largest fleet of ships around Taiwan in decades.
An escalating global response to the Russia-Ukraine war.
Beware the potential busts. They’re resting on hair triggers.
Of course, that’s easier said than done.
That’s why my team and I spent the past year developing a system we call Auspex that does a lot more than “say” things. It’s a tool and a strategy that turns this “embrace the boom… beware the bust” mindset into an actionable plan.
It requires just about 10 minutes of work a month, and exposure to only around 10 stocks at a time.
Even so, our historical analysis shows that from September 2019 to September 2024, this system would have returned 1,054% if rebalanced monthly.
The S&P 500 only put up 109% over the same five-year period.
We’re talking about a market outperformance of 9X.
It’s also beaten the market every single month since we started live-testing with a small group of my members in July.
You can learn more about why our “Auspex” system is one of the smartest trading strategies ever created and sign up for my free broadcast tomorrow at 1 p.m. ET by clicking here. During our time together tomorrow, I’ll dig into the details of how the system works and how you can put it to work in your investment portfolio.
But before that, today let’s dig into how much longer the Trump boom could last…
And why every investor should get in on it now – before that inevitable bust
Make sure you read to the end. As they say, the last 30 minutes of a movie are usually the best.
The Boom We’re Embracing Now
Thanks in large part to the AI Revolution and long-awaited rate cuts from the Federal Reserve, the U.S. stock market has been booming for the past two years.
Big Tech and others are racing to create the infrastructure necessary to support next-gen AI. Indeed, Meta, Microsoft, Amazon, Alphabet – pretty much all the world’s major tech companies – continue to spend billions upon billions of dollars to build new AI data centers, create new applications, hire more engineers, etc.
All of that investment has created a major economic boom.
Meanwhile – after the most aggressive rate-hiking cycle in nearly 50 years – the Fed finally started lowering rates in September.
This has provided much-needed relief to consumers looking to finance big purchases… and businesses looking to make new investments.
This relief boosted the AI Boom.
And so stocks have soared.
Since hitting its lows in October 2022, the S&P 500 surged 70% higher. It is now on track to notch its second consecutive year of 20%-plus gains.
The S&P rose 24% in 2023. So far this year it’s up 27%. If those gains hold, this will mark just the fourth time since the Great Depression – nearly 100 years ago – that the S&P 500 rallied more than 20% in back-to-back years.
We are unequivocally in a stock market boom.
And in our view, this boom is about to get even “boomier.”
Thanks to Donald Trump’s victory and Republicans’ newfound control of Congress, a wave of deregulation, pro-business policies, and tax cuts are likely to sweep the nation over the next few years.
Those dynamics will only add to the current economic boom.
But like I said earlier, all that’s great… so long as you remember that all market booms inevitably end with busts.
It is not a question of “if.” It is simply a question of “when.”
So let’s turn our attention to the other side of this coin…
The Bust We’ll Avoid in the Future
Remember, the stock market is working on back-to-back years of 20%-plus gains. It has only done that three times before: in 1935/36, 1954/55, and 1995/96.
After the two boom years in 1935 and ’36, stocks immediately crashed about 40% in ’37. That boom turned into a bust almost immediately.
Following the market boom in 1954 and ’55, stocks went flat in ’56, then dropped 15% in ’57. The boom turned into a bust after about a year.
Similarly, post-1995 and ’96, stocks kept partying throughout ’97, ’98, and ’99 – only to crash about 50% throughout 2000-’02. After about three years, that era’s big boom turned into a big bust as well.
All booms of this nature turn into busts. It’s just a matter of timing.
Does that mean you should dump your stocks while you still can and head for the hills to avoid this inescapable bust?
Absolutely not.
Instead, get ready to grow your wealth even more.
Here’s how…
Embrace the Best Part
Usually, the last 30 minutes of a movie are the best part of the film.
Similarly, the last episode of a TV show is almost always the best one… and the last few minutes of a ballgame are normally the most exciting.
Well…
The last few years of a stock market boom can often be the most profitable.
Just look at the Dot-Com Boom of the 1990s.
Tech stocks had some amazing years. The Nasdaq Composite rallied 40% in 1995, about 20% in ’96, another 20% in ’97, and then 40% again in ’98.
But tech stocks saved their best for last.
The Nasdaq soared almost 90% for its best year ever in 1999.
Then, the bust started in 2000.
My point is, the best year for tech stocks in the ’90s was the final year of the Dot-Com Boom.
That’s why you don’t want to leave a stock market party early.
But you also don’t want to leave too late.
So, what’s an investor to do?
Embrace the boom… beware the bust.
Ride stocks higher, and then head for the exits when the warning signs appear.
Of course, as we said before, that’s much easier said than done.
But that’s exactly why we’ve been working to create the Auspex investment tool that helps folks navigate through the market turbulence and all these booms and busts. (Sign up to reserve your spot for my free broadcast on this new tool tomorrow at 1 p.m. ET here.)
In short, this new tool is a homegrown stock screener that I use to give my subscribers the chance to make long-term gains again and again like clockwork – in 30-day bursts.
That way, you can get into a position, potentially make a lot of money, and then cash out.
Perhaps the best part is that it takes about 10 minutes of “work” a month and exposure to only 10 or so equities at a time.
Tomorrow, Wednesday, December 11 at 1 p.m. ET, I’m unveiling this investment tool in a new broadcast that you won’t want to miss.
Sincerely,
Luke Lango
Senior Tech Investment Analyst, Investor Place