For the first time in over two decades, investors can get paid to wait.
An FDIC-insured savings account at a major bank yields as much as 3.5%. A two-year CD pays 4%. And the most recent rate on a three-month Treasury bill is 4.74%.
Those are all great alternatives to the stock market, which is down 12% over the past year.
Lots of folks are happy to collect a 4% or more risk-free return instead of dealing with the current volatility of the stock market.
But as soon as May 1, this trade-off won’t look so good.
The opportunities available in the stock market will be far more attractive than any government-guaranteed return.
The smart trade will be to move money out of Treasury bills, short-term CDs, and savings accounts – and put it into stocks.
We’re not at that point yet. So don’t jump the gun.
But investors should start preparing now to make this move, once the time is right.
Think about this…
In the wake of a horrific bear market in March 2003, following the bursting of the dot-com bubble, folks threw in the towel and sold off their entire stock portfolios.
They couldn’t take the pain anymore. So they got rid of their “risky” stocks and put their money in “safe” investments, like three-month T-bills that paid 1.1%.
Three months later, the S&P 500 was up 25%.
Or how about this…
In March 2009, during another bear market environment – this time caused by the Great Financial Crisis – investors once again threw in the towel.
They dumped their stock portfolios, which had been a source of pain for the previous 15 months, and locked in rates of 2.4% on three-month T-bills and similar risk-free investments.
The S&P 500 rallied 40% over the next three months.
Right now, I’m not going to argue with anyone who opts out of the stock market – which still trades north of 18 times earnings – in favor of a secure, risk-free yield of around 4%.
But as early as May 1, we’ll likely see a stock market opportunity similar to what we saw in March 2003 and March 2009.
At that point, the potential gains in the market will dwarf the yield on guaranteed investments.
I’ll explain this in more detail in a special presentation on Wednesday, April 5, at 8 p.m. ET.
I’ll explain how the coming market bottom will most likely play out, and how you can capture multiple triple-digit gains if you’re positioned for it with my strategy… the same one that’s led to an 88% win rate this year.
I’ll even share a free trade recommendation that has the potential to double your money in just a matter of days.
To reserve your spot, just click here…
Best regards and good trading,
Jeff Clark
Editor, Market Minute