Watch now…
I think Bernard Baruch was on to something when he said more than a century ago that “the main purpose of the stock market is to make fools of as many men as possible.”
I was one of those fools more times than I care to admit early in my career – until I discovered the power of data and quantitative analysis to turn foolishness into financial freedom.
We need look no further than the just-concluded first month of 2025 for a recent example. Stocks faked us out in the beginning of the month, with the S&P 500 down nearly 1% just six trading days into the new year. Yesterday, just three weeks later, the large-cap index finished the month with a nearly 3% gain.
At that pace, the S&P 500 would soar more than 40% for the year. I’m not banking on that, but for context, it would be the best year ever for the index – surpassing 1933’s 46.7% gain.
As usual, the kinds of stocks we look for outperformed – those with outstanding businesses, strong technicals, and Big Money inflows. Our Quantum Edge Pro stocks jumped 5% for the month. That’s a stellar 77.6% pace for the year.
I’m not banking on that either, but I do see massive opportunities ahead – based on data – even as the market and the headlines seem to want to make fools of us.
We’ve talked about the potential to make a lot of money in 2025 here in Power Trends, and this past week I got put on the hotseat by my colleague Lucas Downey. I sent Luke a chart that blew him away, and he reached out to say we had to talk about it in his work with TradeSmith Daily.
We scheduled a time to do just that, and Luke picked my brain about the biggest opportunities I see in 2025, including in the artificial intelligence boom – which created some fools of its own this past week after the DeepSeek news out of China.
One company we talk about in the interview is a perfect example. Celestica (CLS) plummeted 28.2% on Monday’s DeepSeek news – only to soar 41.5% in the following four days.
We didn’t sell because the data looks good and CLS continues to rate well with its Quantum Score of 74.1. Unfortunately, those who bailed on Monday simply locked in lower prices for themselves. We, on the other hand, saw our gains in Quantum Edge Pro increase to 105% in less than eight months.
Check out the interview above to learn more about what the data shows, the opportunities I see coming – especially in small- and mid-cap AI companies – and how to spot winners.
This crazy week was another reminder of one of my favorite quotes. It comes from legendary statistician W. Edwards Deming, who said: “In God we trust, all others must bring data.”
If we don’t bring data, I’m afraid Mr. Market is even better at making fools of us.
Talk soon,
Jason Bodner,
Editor, Jason Bodner’s Power Trends