GM. This is Milk Road AI, the newsletter that’s smiling wide at the current market setup.
In today's edition, we'll show you the three macro signals that suggest this bull market may have a lot more room to run.
But first, a way to make your stablecoins actually spendable.
Plasma One lets you spend stablecoins anywhere Visa is accepted and Milk Road readers get $10 back on their first $100 of spend. Start spending in minutes on iOS and Android.
WE ARE ENTERING THE EVERYTHING BULL MARKET 🐂
Kyle (our Head of Research at Milk Road) made a bold statement on Fox Business yesterday:
“We are in a Goldilocks moment for stocks right now.”
The macro backdrop is lining up almost perfectly:
- Earnings keep beating expectations.
- Geopolitical tensions are easing.
- The U.S. economy is absolutely booming.
Let's look at the data.
1. ISM manufacturing printed 55.6
ISM is one of the cleanest real-time reads on the health of the U.S. economy:
- Above 50 = the economy is expanding.
- Below 50 = it's contracting.
At 55.6, it's the strongest reading since May 2022 and marks the seventh straight month of expansion.
The economy is speeding up and this is often the period where stocks go parabolic.
2. S&P 500 net profit margins just hit 16.7%
Net profit margin (the percentage of every dollar of revenue a company actually keeps as profit after all expenses) just hit 16.7% across the S&P 500.
That's the highest reading FactSet has recorded since they started tracking the number in 2009.
Companies aren't just growing revenue, they're also becoming more profitable at the same time.
A booming economy and record profitability at the same time is exactly the setup you want to be owning stocks in.
3. Inflation is easing
Inflation cooled in the latest reading after several months of increases.
One reason is the easing of geopolitical tensions surrounding the U.S.-Iran conflict which had previously pushed energy prices and inflation expectations higher.
The economy is accelerating and inflation is coming down at the same time.
Economists often describe this as the Goldilocks environment. It’s when there’s growth without the economy overheating.
Owning great businesses printing record margins in a booming economy is what you should be doing right now.
The macro setup is genuinely strong and Kyle believes that it potentially gets stronger.
We are in a technology-driven productivity boom and the macro data is confirming it.
The Goldilocks moment is here. The question is whether you're positioned for it.
In case you’re not positioned for it, we have a group of PRO analysts who have been doing the research for exactly this market setup.
They’ve been studying the market for months and have bought a variety of stocks based on their research.
You can view all five analyst portfolios for just $1.
This is one of the best market setups we've seen in years. Don't miss it.
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