Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stocks At All-Time Highs... and It's Time to Buy

Companies / Investing 2012 Aug 09, 2012 - 06:52 AM GMT

By: DailyWealth

Companies

Best Financial Markets Analysis ArticleDr. Steve Sjuggerud writes: "But Steve... Coke and Wal-Mart are at 12-month highs... I don't want to buy them at new highs!"

Why not?

What is your evidence that says they'll go down once they hit new highs? History actually says the opposite...



Today I'll show you that, in the past, buying these stocks at new highs would have made you a LOT of money. And I'll also show you why buying at a high would have worked back then – and will today...

In yesterday's DailyWealth, Brian Hunt told you how to make money in stocks like Coke and Wal-Mart. But readers don't want to buy these stocks at new highs. Let's take a look at the historical record, based on data from our True Wealth Systems databases...

Shares of Coca-Cola are fast-approaching 14-year highs now. Importantly, Coke shares soared over 1,000% – twice – AFTER hitting new, long-term highs in the past.

The chart here shows what I mean...


Coke peaked in 1946. It took 14 years until it hit a new high in 1960. Then, shares of Coke soared over 1,000%.

The same thing happened again in 1985... After 13 years without a new high, Coke shares hit a new high in 1985, then soared over 1,000% again.

Neither of these 1,000% gains happened overnight, of course. But as the chart shows, the rise was fairly steady.

Now – 14 years later – Coke is knocking on the door of a new high again. Should you sell Coke (like most investors would) if it hits an all-time high? Or should you buy? History says you should buy...

Wal-Mart's shares are in an even better spot than Coke's...


It took the discount retailer 13 years to hit an all-time high. But now, it's happened. So should you sell like most people would? Or should you buy?


Again, it's time to buy.

But why? WHY does this "new high" thing work?

The reason is simple...

It works because the share price has gone nowhere for a long period of time... Meanwhile, the company's sales and earnings have continued to grow. The company's stock price is just starting to catch up to the company's business.

It's simple... When a company's sales and earnings soar but the stock price "goes nowhere," the natural result is the stock gets cheaper relative to its sales and earnings.

And that's exactly what has happened.

Right now, Wal-Mart is as cheap as it's been at any time in the last in 30 years. It's coming off a near-record-cheap valuation from last fall. Take a look...



The last time it was this cheap, its future was uncertain... Wal-Mart was competing with Kmart, Sears, Montgomery Ward, JC Penney, and tens of thousands of "mom and pop" retailers. Now (outside of Target), Wal-Mart is the last man standing.

Yes, Wal-Mart has run up this year. And yes, it is at a new 12-year high. (Heck, it's at an all-time high.) But that does NOT mean it is time to sell. On the contrary... Based on history, you want to OWN it.

And you want to own Coke, too... for the same reasons.

It's not just Coke and Wal-Mart. They just help illustrate the point.

The point is, right now, you have the opportunity to buy into the world's greatest brands at near-record-low valuations. Meanwhile, we're getting them when they're in solid uptrends, busting out to new multi-year highs. Sure, if you buy now, you aren't in as early as some investors... but you're still getting these stocks at great values. Plus, this trend will last for YEARS. There's plenty of room left to run.

These have been good for hundreds of percent returns (even 1,000%-plus over longer periods).

And the situation today is no different (growing sales and earnings coupled with a flat share price for a long time) than it was in the past.

Take advantage of it. Buy the world's greatest brands, at low valuations. Don't be concerned that they're near their highs. You're getting great businesses at great values. Don't miss out...

Good investing,

Steve

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2011 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in