I love finding stealth rallies in the financial markets. These under-the-radar moves higher are ignored by the financial media and therefore by most investors.
Stealth rallies occur for any number of reasons. Primarily, these types of upward moves happen in commodities or stocks that have been beaten down for so long that the public simply loses interest in them.
A stealth rally starts by attracting the attention of only the most die-hard followers. These early investors quietly pocket huge gains while the rest of the investment community is chasing the latest hot stocks or futures.
Right now, a stealth rally is taking place in a commodity that has not been in the headlines for a while. Once a darling of the financial media, this commodity has been beaten down so severely it is rarely mentioned in the daily financial press. After being hailed as the savior of the United States' energy future, this commodity quickly became over-produced. It may have succeeded in revitalizing U.S. energy, but its price continued to plunge lower as the years passed.
In case you haven't guessed it, I am referencing natural gas. The widespread use of fracking created an oversupply of the commodity, resulting in a price plunge.
Recently, however, things have changed. Natural gas is in the middle of a monster upward rally and it's not too late to jump on board.
At this point in President Obama's first term, the world looked very different.
The still-anemic economy made it hard to fathom how we would ever get out from under a crushing government debt load. Government spending far surpassed revenue and concerns grew that our key financial backers (such as Chinese bondholders) would pull the rug out from under us.
Fast forward to 2015, and the notion that our national debt is any sort of real problem has simply vanished. Sure, the Republican party has been recently threatening government agency shutdowns, but this time the issue is immigration and not our nation's unstable finances. The percentage of Americans that believe that deficit reduction should be Washington's top priority has slid to a recent 64%, from 72% in 2013, according to a recent survey conducted by Pew Research.
Today, I'm going to tell you an unpleasant truth...
The vast majority of investors won't make much in their personal brokerage accounts this year... or next.
Now this might make you angry. But don't take my word for it, just look at a recent study done by investment-management giant BlackRock.
Its study illustrates that the average investor does poorly when compared to the growth of other asset classes like stocks, bonds and oil. in fact, as you can see in the chart below, the average investor earns just 2.1% -- below even the rate of inflation.