Top Picks 2018: SPDR Dow Jones Industrial Average ETF (DIA)

01/22/2018 5:00 am EST

Focus: ETFS

Mary Anne & Pamela Aden

Co-Editors, The Aden Forecast

The bull market rise in stocks has been impressive. In fact, the stock market has risen every month in 2017 in its longest streak of monthly gains in 22 years, explain Mary Anne and Pamela Aden, editors of The Aden Forecast.

With the market hitting so many new highs, many wonder how much further can the stock market go? Opinions are all over the place, but there's good reason to believe this bull market could keep on going in the months and probably years ahead.

The economy is strong, and so are earnings. Interest rates are still low, the employment picture is positive and the leading economic indicators are strong.  This bodes well for stocks.

Plus, the market is not yet technically overbought... only now is the public starting to pour into the market and this alone could drive stocks sharply higher.

Let us explain. Comparing the current bull market to the big bull markets of the past, you can see the similarities have been right on (see chart).

dow 3 bull markets

If this continues, and so far we believe it will, then this "melt up" could last for a couple more years.

In other words, it's not too late to buy new positions in stocks. Ideally, you'd want to buy during a downward correction in order to obtain a better price. Or you may opt for averaging in, buying some now, some next month and so on for a few months.

An easy way to take advantage of this bull market rise is by buying the index for the Dow Industrials. As such, our top pick for 2018 is the SPDR Dow Jones Industrial Average ETF (DIA). Since the Dow Industrials has been a market leader we like this option the best.

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