Five Must-Hold Stocks Over the Next Year
Anyone holding these positions will likely be happy in 12 months...
One of my favorite things about markets is it’s clear who the winners and losers are.
The question is simple: was your thesis correct, did you make money, and how much did you make?
If you’ve been reading my work over the last few years, you most certainly made money. I’m on record as early as November 2022 that US stocks had likely bottomed. This came after stocks rallied on a hotter than expected CPI print, which I recognized as a bottom signal since stocks were rallying on bad news.
But this wasn't a one-off call. I have consistently reiterated that stocks had more upside (examples here, here, here, and here). That includes in October 2023 when many thought the S&P 500 was headed back into a bear market. And I hope you followed my lead, as the S&P 500 is +40% in the last 12 months. That's the best one year stretch for the S&P 500 in 70 years.
I expect the good times to keep rolling for a few reasons I'll explain today.
And there's a few must-hold positions during this pivotal period.
This Secular Bull Has Room to Run
Most secular bull markets last around 10 to 20 years, with some extending even longer.
The current secular bull market started in 2013.
That means we could easily have 5+ years of more upside, and potentially even longer since we're at the beginning of a global easing and liquidity cycle.
Secular bull markets are almost always driven by a combination of earnings growth, productivity gains, and technological advancements. For example, the bull market of the 1980s and 1990s was fueled by the rise of personal computing and the internet, while the post-2008 bull run benefited from a period of steady earnings growth and low interest rates.
Today, the driving force behind this bull market is undoubtedly artificial intelligence. Companies are increasingly using AI to streamline operations, increase productivity, and unlock new revenue streams.
And with the world's largest tech companies spending hundreds of billions to try and capture this market, they understand how powerful this tech.
With AI as a major earnings and productivity tailwind, along with strong earnings growth across many sectors, I believe this secular bull market still has years to run.
That’s why I continue to hold several key positions to maximize returns in this environment.