Why we want to be invested today

The S&P 500 managed to make yet another new high this week. The market making new highs in the face of a presidential election and rising geopolitical tensions is impressive. But I’m even more impressed with what’s going on under the hood of this rally... [Header]( Why We Want to Be Invested Today Dear reader, The S&P 500 managed to make yet another new high this week. The index closed out the week up about 1% as investors continue to view the Federal Reserve’s aggressive rate cut as a positive for stocks. The market making new highs in the face of a presidential election and rising geopolitical tensions is impressive. But I’m even more impressed with what’s going on under the hood of this rally... Sectors that have been lagging are now attracting investors. The “Magnificent Seven” tech stocks aren’t leading the market anymore. In fact, based on Google Trends, the general public has moved on from the Magnificent Seven... Google Trends can help us visualize how much Google users are searching for specific keywords in a certain time frame. As you can see in the chart below, public interest in the Magnificent Seven peaked at 100 the first week of February. Today, the metric is down to 12. [mmi 9-28] The market internals – indicators that use data from stock exchanges – are also showing signs of strength. On Friday, there were 99 new highs on the New York Stock Exchange and only one new low. That’s the kind of reading you see in a bull market, not a bear market. That said, I’ve heard an overwhelming amount of negativity lately. While traveling around the U.S. last week, sentiment appeared to be extremely negative. I heard everything from “the economy is terrible” to “there aren’t any jobs out there” to even “the stock market is only for the rich.” People went on and on with their criticisms about today’s market. But I disagree. Now is a great time to be invested... especially given the combination of strong market internals and an abundance of negative sentiment. Still, we’ll tread cautiously. Next week, we’re about to enter what’s called the “month of crashes.” So buckle up, folks. Now, let’s recap everything we talked about in Market Insights this week... Monday: The financial media has been all over the market action since the Federal Reserve cut interest rates. The S&P 500 surged following the news of a 50-basis-point (0.50%) cut – sending stocks to record highs. But that's not the only asset class that has been on the move. [Click here to read The World's Largest Crypto Is Starting to Rally](. Tuesday: In 1979, Three Mile Island's Unit 2 reactor melted down – causing the most serious nuclear accident in the United States. The reactor suffered a mechanical accident that led to its immediate shutdown. But Unit 1 remained fully operational until 2019 when the facility closed due to financial reasons. Now, it’s coming back online. [Click here to read One Historical Nuclear Plant Is Coming Back Online](. Wednesday: China's central bank just made a major announcement. In an effort to combat its recent economic struggles, the central bank just cut interest rates by 50 basis points and also unveiled its largest stimulus package since the pandemic. This latest news has been positive for one sector. [Click here to read China's Stimulus Package Sends This Sector Soaring](. Thursday: Many traders fall victim to the "complacency trap." It's a dangerous mindset to have as an investor. You see, this way of thinking works... until it doesn't. My colleague Imre Gams shares three ways you can get yourself out of this trap and save your portfolio from potentially huge losses. [Click here to read Three Ways to Avoid the Complacency Trap](. Friday: The Federal Reserve's decision to cut interest rates combined with China's new stimulus package is setting up one sector for a long-term bull market... commodities. Various tailwinds are at work right now to boost this space. But building out a commodity basket today makes even more sense given what’s coming next. [Click here to read Don't Miss Out on This Sector's Breakout](. Here's to the future, [Matt McCall signature] Matt McCall Editor, Market Insights © Centurion Publishing 13809 Research Blvd, Suite 500, Austin, TX 78750 [CenturionPub.com]( *Results are not typical. Past performance does not indicate future results. All investing carries risk. Our Privacy Policy, along with our Term & Conditions, governs your use of this site. By using our site, or by accepting the Terms of Use (via opt-in, checkbox, pop-up, or clicking an email link confirming the same), you agree to be bound by our Terms & Conditions and our Privacy Policy. If you have provided personal, billing, or other voluntarily provided information, you may access, review, and make changes to it via instructions found on the Website or by replying to this email. To manage your receipt of marketing and non-transactional communications, you may unsubscribe by clicking the “unsubscribe” link located on the bottom of any marketing email. Emails related to the purchase or delivery of orders are provided automatically – Customers are not able to opt out of transactional emails. We will try to accommodate any requests related to the management of Personal Information in a timely manner. However, it is not always possible to completely remove or modify information in our databases (for example, if we have a legal obligation to keep it for certain timeframes, for example).If you have any questions, simply reply to this email or visit our website []( to view our official policies. To Unsubscribe [Click Here](