Our Experts Say Big Second Half Ahead For Stocks

Dear Investor, As a reader of the daily Forbes Billionaire's Pro Perspectives, you've seen the incredible insight the expert founders of the Forbes Billionaire's Portfolio bring to the table. They told us oil would bottom and bounce aggressively, and why. It's bounced nearly 100% since. They told us to use the dip in stocks earlier this year as an opportunity to buy, while everyone else was saying "run." Stocks have rallied to new record highs. In January they told us the Bank of Japan would surprise the world with more policy action. It happened! They told us the Brexit concerns were overblown. They were right! They told us that Brexit would invoke some much needed fiscal stimulus in the world. They were right! They've told us that stocks can go much, much higher in this economic climate. They've been right! Since launching the Forbes Billionaire's Portfolio in December, our subscribers have invested alongside the world's best investors, and areoutpacing the S&P 500 by 4–to–1!  JOIN TODAY But the founders of Forbes Billionaire's Portfolio think the real wealth–building opportunities may just be getting underway. They are convinced the second half of 2016 is going to be HUGE for stocks! Here's what they're saying … "If you awoke today from a decade–long slumber, and we told you that unemployment was under 5%, inflation was low, gas was $2.15, mortgage rates were 3.5%, you could finance a new car for 2% and the stock market was at record highs…you would probably tell us the outlook for the economy looks really, really good. Those are the conditions we have, yet most think the sky is falling. As we've discussed, the central banks are in control, and they have been since the depths of the financial crisis. Say what you will, but they have—led by the Fed—orchestrated a global economy recovery, albeit much slower than typical post–recession recoveries, and have produced and preserved economic stability along the way. Playing a key role, in the face of intense scrutiny from the "run–away inflation" theorists, they have pinned down interest rates that have warded off a deflationary spiral and created the framework of incentives to hire, spend and invest. With the above said, we think we could be on the precipice, if not the early stages, of an economic boom. As for stocks within that context, today we want to revisit some of our previous analysis on where stocks can go from here… History The long–run annualized return for the S&P 500 is 8%. If we applied that number to the pre–crisis highs from 2007 of 1,576 on the S&P 500, we get 3,150 by the end of this year. That's 47% higher than current levels. That's what it would take to make up for the nine years that stocks have been knocked off path–just to simply get the S&P back in line with historical norms. Valuation In addition to the above, consider this: The P/E on next year's S&P 500 earnings estimate is just 16.9, near the long–term average (16). But we are in a very low interest rate environment. In fact, we are in the mother of all low–interest–rate environments (still near zero). With that, when the ten–year yield runs on the low side (it's very low), historically, the P/E on the S&P 500 runs closer to 20, if not north of it. If we multiply next year's consensus earnings estimate for the S&P 500 of $126.76 by 20 (were stocks to be valued in low rate environments), we get 2,535 for the S&P 500 by next year—18% higher." Boy, it sure sounds like it's time to take action. So what do you buy? That's always the tricky territory for investors. How do you find the next big winning stocks and stay away from the losers? Our premium advisory service, the Forbes Billionaire's Portfolio, answers that question. It takes the guesswork out of picking stocks. To put it simply, you get the privilege of investing alongside the richest, most powerful investors in the world. You can buy the same stocks they buy. You can sell when they sell. It's like carpooling with a billionaire. If you haven't already subscribed to our newest premium advisory service, the Forbes Billionaire's Portfolio, please take this opportunity to do so right now by clicking here. To make sure you don't have any doubts, we have a special one–month trial for just $99 but the offer ENDS TOMORROW. You get access to the full gamut of billionaire intelligence, just as our premium members have, but for a fraction of the normal price. Join us now and get your portfolio in line with the richest, most powerful investors in the world. As a bonus, we'll send you Bryan and William's special report, Warren Buffett's Concentrated Six Stock Portfolio … We look forward to welcoming you to our newest premium service, theForbes Billionaire's Portfolio. JOIN TODAY Best Regards, Charles Morgan, Associate Publisher Forbes Investing Newsletters Forbes Media | 499 Washington Blvd. | Jersey City, NJ 07130