Why You Should ‘Leverage up’ for This Stock Market Rally…

At some point, this market will fall.

When it does, it will be a big fall.

We’re not talking hundreds of points.

We’re talking thousands of points.

But as the US stock market cracks another high, and the European Central Bank runs with a negative interest rate policy, don’t expect the crash of the century to happen anytime soon…

Not everyone has the same view.

As Bloomberg reports:

‘For five years it’s been the fate of American short sellers to be wrong, as the biggest rally since the Internet bubble steamrolled defensive trades.

‘They’re loading up again, sending bearish wagers in the SPDR exchange-traded fund tracking the Standard & Poor’s 500 Index to almost 11 percent of its shares, the highest proportion since 2012…’

The interesting point about that statistic is that from 2012 to today the US index has rallied 52.7%. Just because a bunch of folks think the market will fall, doesn’t mean it will.

But there was a quote from the Bloomberg article that really paints the picture of the current market. It’s a quote from Stephen Solaka, managing partner at Belmont Capital Group:

‘This is one of the most-hated bull markets. A lot of people are praying for the market to fall. There are a lot of professional shorts. It’s been a painful trade.’

He’s got that right.

The scattergun approach to stock market crashes

Most bull markets have some element of excitement and thrill.

But this bull market hasn’t had any of that. At every step of the way you’ve had warnings about a coming collapse.

Each time the stock market has seemed to hit a head of steam, a supposed crisis has reared up to stop it in its tracks.

And each time, these supposed crises have turned out to be nothing. They have had no real impact on the market or on the world economy at all.

Yet, that doesn’t stop the mainstream from constantly looking for the next bear market trigger. We guess they’re going for the scattergun approach. If they predict enough crashes, they’re bound to get one right.

The trouble is, by the time they get it right, most investors will have grown immune to these warnings.

But on cue, here comes another fatal warning.

Not satisfied that the conflict between Russia and Ukraine didn’t cause a crash, just as we said it wouldn’t, the mainstream has come up with another reason why stocks will crash.

Only, they won’t.

Russia ‘crisis’ was a buying opportunity

By the way, on the Russia story, we actually suggested that Money Morning Premiumsubscribers look at profiting from the Russia-Ukraine spat. We suggested they look at theMarket Vector Russia ETF Trust [NYSEARCA:RSX].

That ETF is up 25.2% since mid-March.

Read the rest of this article at Money Morning