Hey, Ross here:
CPI data came in slightly hotter than expected. And yet, markets closed higher.
There’s still gas left in this rally.
And as today’s chart shows, this rally isn’t just limited to the U.S.
Chart of the Day
This is a chart of the MSCI All Country World Index (ACWI) – an index that tracks the performance of large and mid-cap stocks in both developed and emerging markets.
In other words, it’s the de facto index for looking at how global equities are performing…
And as you can see, they’ve just surpassed their 2021 highs.
So, yes – the rally in U.S. equities does appear to be looking a little overextended.
But it’s not an anomaly – the rest of the world is rallying as well.
In short, the wind is at everybody’s backs – and we should take full advantage of the situation.
Insight of the Day
Refusing to participate in “overextended” markets is a surefire way to miss out on healthy profits.
By certain metrics, U.S. markets are overextended – aka overbought – right now.
And the data does show that broad market returns tend to be highest when they’re oversold – the opposite of being overbought.
But what most people don’t know is that, statistically, the second highest returns come from when markets are technically overbought – like they are now.
So, yes – you might not get the absolute biggest returns right now given current market conditions.
But you can still pocket very healthy returns in today’s markets…
Especially when you consider that upward momentum tends to be self-sustaining and that global stocks are themselves at all-time highs.
So don’t cause yourself to miss out just because things feel overextended…
Just make sure you’re targeting the right stocks and are disciplined with your risk management.
And that’s why later today at 3 p.m. Eastern…
I’m going LIVE for a masterclass that will allow you to target the stocks that could keep rocketing upwards in this hot market…
Using a strategy that could have handed you a double-digit gain in the past two trading days alone.
So make sure you click here now to guarantee your spot for my masterclass later…
Block out your calendar…
And look out for the login details in your inbox later this afternoon.
See you then.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
