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QQQM: A Cheaper Way to Play a Market That's Likely to Rally Hard

Published 2024-03-06, 03:29 p/m

First of all, the market had a couple of down days recently — but that’s AFTER the S&P 500 hit an all-time high and notched its 13th record close on Friday. Nothing travels in a straight line, so we’re seeing some giveback before the next thrust higher.

Could we be at a top? Not likely. Any year when the S&P 500 hits an all-time high, history shows it makes more all-time highs an average of 29 times!

Want another fun fact? Since 1950, when both January and February are positive for the S&P 500, the average annual gain has historically been 19.87%, as this chart from Carson Research shows…

A graph showing the growth of the stock market  Description automatically generated

What’s more, a positive close this month would be the fourth month in a row — November, December, January, and February — that the S&P 500 has closed higher. The full calendar year has NEVER ended lower when that happens. It’s happened 14 times before, and the S&P 500 has ended higher all 14 times, up an average of 21.2%.

So, how can you profit in this market? In my Supercycle Investor, we’re playing this move with individual stocks — and already grabbing fat gains with both hands. There is a lot more to come. But if you want to buy an ETF, consider something tech-heavy. After all, AI is going to power tech higher.

You can buy the Invesco QQQ Trust. But that’s a bit pricey, with an expense ratio of 0.2%. You can buy the same thing for much cheaper with a lower expense ratio — 0.15% — with QQQM. It has a Weiss Rating of “C” and is basically a cheaper version of the QQQ.

A graph of stock market  Description automatically generated

You can see that the tech-heavy QQQM is already ramping up. Despite the warnings from Wall Street’s doom-meisters, I believe it has a great year ahead of it, for all the reasons I told you and more. My target on QQQM is $260 per share.

Recommended Action: Buy QQQM.

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