Over the last two weeks, I’ve been showing you some of the things Wall Street insiders look at when trying to figure out if the stock market is a good bet or not. And this week, I’m going to continue this trend with another indicator that I’ve used to determine if a bull market is going to keep going … or if it’s on its last legs.
This indicator is the level of deal activity from publicly traded companies — or what bankers call mergers and acquisitions (M&A). In other words, companies buying other companies. This is important because when you see one company buy another company, it’s a sign of confidence in the market. A company usually isn’t going to spend millions or even billions of dollars buying another company unless it thinks that business conditions are good.
So what’s this indicator saying right now?
M&A activity amounted to $224 billion in January. That’s the highest number seen for the month since the year 2000. This indicator is clearly pointing to lots of confidence among business leaders to pull the trigger on deals.
It’s one reason why I believe the bull market in stocks is going to keep going. And this continued bull market is going to generate big winners — 1,000%-plus winners — for a new service I’m starting.
If you’re the kind of investor who likes making big gains fast and can tolerate a bit more risk and volatility, there’s still time to sign up to watch my Extreme Fortunes Summit webinar that I’m holding today at 1 p.m. Eastern time.
Editor, Profits Unlimited