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The Market Pivot Point You Want to Know About

Tech stocks have been soaring, and boring dividend stocks have gotten no love from momentum-chasing traders.

One of Wall Street’s hottest tech darlings, NVIDIA recently gained $250 billion in value… in a single day.

That’s more than twice the value of Intel.

What is going on?

Whether you are aware of it or not, we are approaching a market pivot point.

A historical point at which the hottest stocks will shift from one area of the market to another.

The last time this occurred, it was followed by a once-in-generation opportunity for high-yield dividend investors.

Here at Intelligent Income Daily, our goal is to steer you toward the safest income-generating opportunities the market has to offer. And we study market history to make sure you’re prepared for the times it repeats.

Today I’ll explain the details of this upcoming pivot point and why it’s a once-in-a-generation opportunity for dividend investors to grow their wealth.

Prepare for the Pivot Point

Growth stocks like NVIDIA have had higher price-to-earnings or P/E ratios for the last quarter century than dividend-paying value stocks.

That’s no secret, and it makes complete sense.

Historically, growth stocks grow about 30% faster than value stocks, trading at 30% higher P/E ratios.

But their price-earnings/growth or PEG ratios are similar over time.

Yet sometimes, the market will become obsessed with one over the other.

The market will fall in love with what’s working so much… that it will create an incredible opportunity for savvy investors like you.

And the opportunity is this… When this obsession plays out, the hottest stocks on the market will be absurdly overvalued. When that happens, a shift begins to take place and a new regime takes over.

This shift is a pivot point in market history where the hottest stocks of the next decade change hands.

We’ve seen it before. After a decade of red-hot growth stocks during the 1990s dotcom bubble, value stocks soared in the 2000s. Meanwhile, investors cut the Nasdaq in half.

And after a decade of value stocks being the favorite, can you guess what happened next?

Value stocks became 60% overvalued compared to growth stocks by 2009.

And as you can see below, right now, we are approaching another pivot point.

(Source: Portfolio Visualizer Premium)

And to prepare you for this pivot point, I want to break down all that you have to gain as a dividend value investor.

Had you bought value stocks in March of 2000, today $1,000 would be worth $5,145 compared to $3,978 in the Nasdaq.

And if you bought value stocks at this inflection point, sold them when value stocks were in a bubble, and then rotated back into tech, you’d have $12,729. Even after adjusting for 23% taxes on capital gains.

That’s 4x better returns than just buying and holding the Nasdaq during the entire period.

The Time to Capture This Opportunity is Now

So I bet you’re wondering, “When will this happen next?”

During the tech bubble in 2000, it took about 12 months after the value discount hit today’s levels before the tech crash began.

But it’s unlikely you’ll have to wait nearly as long this time.

Vanguard just put out a report (that agrees with our historical model) showing that value stocks outperform growth stocks after a recession’s end.

That would be about 15 months from now. But waiting until then to invest would be too late.

When value stocks are this undervalued relative to growth, the value rally begins when economic growth starts to slow, which is right now. After all, the Fed just hiked rates at its fastest clip in 42 years.

And if you have trouble picking which dividend stocks to add to your portfolio, we have two dozen incredible companies in our Fortress Portfolio service.

One of them is a dividend aristocrat value stock that has produced big returns during the last two pivot points as seen below.

(Source: Portfolio Visualizer Premium)

In the next 18 months, we expect this 9% yielding world-beater to double. In five years, we expect it to triple. Over the next decade, we expect a five-fold increase.

To find out the name of this stock, and learn more about our Fortress Portfolio service, click here.

Don’t miss out on this once-in-a-generation opportunity for dividend investors to grow their wealth.

Safe investing,

Adam Galas
Analyst, Intelligent Income Daily