1 Top Pick for 2023 Stock Market 40 year investment veteran Steve Reitmeister shares his #1 investment for 2023 that should easily top the S&P 500 (SPY). However, timing WHEN you get into this trade is the...
By Steve Reitmeister •
This story originally appeared on StockNews
40 year investment veteran Steve Reitmeister shares his #1 investment for 2023 that should easily top the S&P 500 (SPY). However, timing WHEN you get into this trade is the real battle. Read on below for the full story.
Right now its mid-October 2022 as I write about my favorite pick for 2023. And right now I am extremely bearish on the short term outlook expecting stocks to find bottom between 2,800 to 3,200 by early 2023.
But then things become glorious for the bulls.
Because from that darkest hour stocks will rise with gusto. We are truly talking about the "phoenix rising from the ashes" which is how all new bull markets begin.
In fact, going all the way back to 1900, the average first year gain for new bull markets is +46.2%.
Now consider that small caps generally rise 20% more than large caps in the S&P 500 (SPY).
Now consider that using 3X leverage in this small cap ETF could easily lead to first year returns north of 100%.
Now you understand why I am pounding the table on buying this 3X ETF focused on small cap stocks for 2023. I am referring to Direxion Small Cap Bull 3X ETF (TNA)
This sounds great except for one thing….WHEN do you buy it?
If you buy too early, and the market is still racing lower, you will have tremendous losses on your hands. So I caution against just blindly buying it without some consideration for determining market bottom.
Again, right now it is October 2022. So this is an evolving story that needs vigilant watch on all the key indicators like employment, earnings, inflation, Fed rates and price action. That is the only way to determine when it may be time to enact this TNA trade.
If you would like some help with timing the market bottom, and when to buy into this TNA trade, then please sign up to get my free market commentary. Not only do I provide constant updates on the market outlook, but also timely trading strategy and top picks.
Click here to get free market updates from Steve Reitmeister
Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced "Righty")
CEO, StockNews.com
Editor of Reitmeister Total Return
TNA shares were trading at $32.02 per share on Wednesday morning, down $1.18 (-3.55%). Year-to-date, TNA has declined -62.22%, versus a -21.08% rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as "Reity". Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity's background, along with links to his most recent articles and stock picks.
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