The last time I wrote to you, I gave you a recap of how the big money guided us to profits all throughout 2020 – even forecasting every major market move of the year.

And in today’s issue, to ring in the new year… I’ll share what I think will happen in 2021.

Veteran subscribers know I love data science: cold, hard, black-and-white numbers. This data is what guides my investment decisions. I don’t rely on a crystal ball or gut feel for any of my predictions.

After all, analyzing data is what led me to my unbeatable stock picking system. And, armed with this data, I can make predictions more confidently.

So, without further ado, allow me to share my predictions for 2020.

  1. I believe markets will keep their upward trajectory throughout 2021. The likelihood of a prolonged bear market, in my view, is slim to none.
  2. I see retail investors grabbing up stocks in January in a big way. That’ll likely be the time to lighten up risk.
  3. The Big Money Index (BMI) will peak on or near January 6 – just five days from now. This means we should look for a market peak the second half of January or early February. I would anticipate a substantial pullback – of, say, -9% – on the S&P 500.
  4. Next year’s earnings will be epic. Q2 and Q3 may be some of the best earnings and revenue growth figures we’ll see in our lifetimes.
  5. Growth stocks will get their groove back. The massive rotation into value stocks will continue, but at a more muted pace. Growth will shine in 2021.
  6. Outlier stocks will continue to hit new highs. Of course, that’s where I’ll be focused throughout 2021 for my subscribers.
  7. There will be one oversold period for stocks in 2021. That will give ample opportunity to buy phenomenal companies at great discounts. The way we do that is isolate prior outliers that have been unfairly punished with overreactive markets.
  8. Sector strength will continue on the reopen plays for a little while. But this will be speculative… as the sectors have yet to actually benefit from boosting revenues for an actual reopening – which hasn’t happened yet!

    When a market pullback does come, I anticipate these momentum-driven sectors to get a reality check. This pullback of value and small caps will be exaggerated, too: algorithmic and high-frequency traders will seize on the momentum driving the Russell 2000 (more than +12.5% since the November 9 COVID vaccine news, as of this writing).

    When this happens, I anticipate a return of capital back into tech and growth stocks. That said, when sales and earnings start to come in, beating expectations in 2021 for value and small-cap stocks, those groups will start to see another inflow of capital.
  9. I will identify more than half of the S&P 500’s top performing stocks in 2021 for my subscribers. And I will identify them early.
  10. 2021 will provide just as many phenomenal investment opportunities as years past. Though opportunity rarely looks like it. When March lows came for stocks, despair was high. Money managers were crying on television. People were dying and the economy seemed like it was on its knees.

    Most would say that environment would not feel like an opportunity. It felt dreadful to most. But that turned out to be the prime opportunity to buy.

A Future That Couldn’t Be Brighter

Unlike any other year, 2020 has shown me that we should only look at stock through big money goggles.

The big money knows before markets move… they just never want to tip their hand. They know which stocks to buy, which to sell, and when to trade.

Everyday investors don’t stand a chance of competing… unless, of course, they have a secret weapon. That is why I created my unbeatable system: to give an everyday guy like me a chance at life-changing gains.

It worked in 2020 – the toughest year for the market in a long time – and still works.

I have no doubt it will work in 2021.

Happy New Year!

Jason Bodner
Editor, Palm Beach Insider