Top Picks 2017: Dow ETFs
01/12/2017 6:00 am EST
The stock market is on a tear. The market is extremely bullish and it's likely headed much higher, forecasts Mary Anne and Pamela Aden, editors of The Aden Forecast.
A major shift if taking place and it's happening on several fronts — political, economic and in the markets. This is a most important development.
For the past few years, deflation has been the big global concern. Central banks fought these forces tooth and mail, and the results were moderate.
But this is now changing. Interest rates are rising. Economic growth is picking up. People are spending, unemployment is at a 9-year low, U.S. business is growing at a faster pace and housing starts are at a 9-year high.
Wall Street is convinced Trump’s policies will be good for business. The stock market looks ahead. And contrary to what many believe, it's telling us good times are coming in the month ahead.
The Trump rally has fueled optimism not seen in decades, signaling that business, earnings and the economy will continue to do well as the year unfolds.
The Dow Industrials and the Dow Transportations have confirmed each other, by hitting new simultaneous highs.
This is confirming a final Dow Theory bull market signal. This doesn't happen often and it is further reinforcing the bullish outlook.
An easy way to profit from this bull market is to buy the ETFs that track these major averages – the SPDR Dow Jones Industrial Average ETF (DIA) and iShares Dow Jones Transportation Average ETF (IYT).
They've been among the market leaders and -- aside from normal short-term downward corrections -- they'll probably keep leading the way.