Hot Stock Summer Is Here

Joe Hill|June 1, 2024

It’s official. Summer is here.

The beginning of summer typically marks the start of a more muted stock market performance.

Historically, stock gains tend to be weaker in the summer – even when the overall market has been strong.

But this is no ordinary year…

And this is no ordinary market.

Investors are anxiously awaiting word from the Fed that it will reverse course on interest rate hikes. The Dow just topped 40,000 for the first time. And Nvidia (NVDA) earnings blew analysts away once again, proving to Wall Street that the AI narrative still has plenty of room to run.

Really, that just scratches the surface of all that’s moving and shaking stocks right now.

There’s a whole lot going on.

Which is why Shah predicts we will have a more volatile summer than many are expecting – with plenty of opportunities to swoop in and buy dips for swift gains. (He’s already lined up one such play this week in Alpha Money Flow.)

The average investor may not love when their position tumbles. But for a trader like Shah, it’s the ultimate gift. The man buys more dips than a Super Bowl party host.

And make no mistake… though seas may look choppy ahead, the sun still shines on stocks (and crypto).

Despite still-elevated rates, we are firmly in the second leg of this bull market – a point Shah reiterated on Fox Business’ Varney & Co. on Tuesday.

The massive AI-driven surge is only part of the story.

“I think we have a lot higher to go, and not just driven on the AI narrative,” Shah said. “We’re driven on better earnings, we’re driven on a broadening out in terms of market participation as far as different sectors – industrials, utilities, financials. It’s not just AI. It’s not just Big Tech anymore.”

So, in more ways than one, we’re heading into what’s looking to be a hot summer.

It should be a lot of fun.

Just make sure you pack your Dramamine.