This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

4 Reasons to Buy Stocks in 2013

>>5 Stocks Poised for Breakouts

The question now is just how much principal investors are willing to lose in treasuries (or see flat-lining in most other fixed income investments) before they can stand staying away from stocks.

2. International Markets Are on Fire

Meanwhile, international markets are red hot.

Overseas stocks saw the hardest fall post 2008 as the higher beta in emerging market economies suddenly started looking like less of an advantage and more of a liability. But in the last few months, they've been rallying hard. Despite the economic crisis in Europe, equity markets in the EU have been hammering home new highs, Japan is coming off of a generational bottom, and the developing world has been doing one better.

Emerging market stocks have been showing extreme relative strength versus the S&P 500, with indexes like Hong Kong's Hang Seng, the Shanghai Stock Exchange Composite, and Mexico's Bolsa all looking bullish.

>>5 Dividends Are About to Get Bigger

Why are international rallies good for U.S. markets? First, beefier valuations aboard for stocks help make U.S. stocks look cheaper, drawing more international cash into the market. And second, in this connected world, how many S&P or Dow components do you know of that don't do business overseas? Market rallies overseas increase the balance sheet values for U.S.-listed firms too.

3. Market Technicals Are Bullish

You don't have to be a whiz technical analyst to see what's been going on in the S&P 500 since 2008's market crash:

Stocks are in an uptrend, simple as that.

And despite all of the "overbought" talk that's been circling around stocks for the last couple of weeks, the momentum gauge that's spotted every other correction along the way doesn't agree (that gauge, incidentally is nine-week RSI). If we're not even overbought enough for a healthy correction, why would stocks be overbought enough for a crash?

I've said before that the last decade in stocks mirrors the price action that we saw in the 1970s -- and in the 1930s before that. Each of those periods came with major stock crashes that convinced investors Wall Street couldn't be trusted -- and those last two were followed up by long-term sustained rallies for stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs