5 Stocks to Own for the Rally Ahead

iStock_000007004645XSmall 3 Green Arrow Lights

iStock_000007004645XSmall 3 Green Arrow LightsNow that we have that ugly pull-back out of  the way, we can focus our attention on what to own moving forward.

The S&P 500 is still negative for the year and yet earnings are strong and economic growth is positive. That means stocks are cheaper than they were at the beginning of the year.

Thomas Lee, Chief Equity Strategist for JP Morgan, has a 2075 target on the S&P 500. That’s a 13% move from Friday’s closing prices. If indeed that target is reached, there will be some big profits to be had. Some stocks are likely to do even better than the index.

The bears are getting slaughtered, calling for a market downturn that never comes.

While a 13% gain from here pales in comparison to the gains made in 2013, they are still way ahead of other investment classes.

Lee is believes that the bull market is in the middle innings.

Instead of trying to time the market – something that is impossible to do – it is far better to own stocks at cheap prices. Let them appreciate as they are likely to do. Jumping in and out of stocks is a sure-fire way to lose money.

In this market it will pay to be long and strong. So, what should we be buying and holding today?

Here are five picks that should exceed the major market indexes for the remainder of the year:

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James (Jamie) Dlugosch is a contributing editor to MSN Money, The Street.com, InvestorPlace.com and Traders Reserve. He has a long and distinguished career in the investment industry that includes editorial and publishing stints with the highly rated Rational Investor, The Prudent Speculator and the current Penny Stock Winners. Jamie was a contributing editor to InvestorPlace Media where his content was syndicated to numerous on-line financial sites including MSN Money and AOL Finance. At the turn of the Millennium he was the President and CEO of Al Frank Asset Management where he honed his skills under the tutelage of the well respected guru, Al Frank. With The Rational Investor Jamie adapted Al Frank’s long-term market beating strategy to reduce risk and increase ease of use for subscribers. He was quickly rewarded for his efforts by compiling the second highest total return of all investment newsletters in 2004 according to The Hulbert Financial Digest. His investment approach has produced winning returns in competitions held by MSN Money in their long running Strategy Lab. He also has successfully raised private capital for a variety of private ventures including the purchase of Al Frank Asset Management, an investment now worth many times its original cost. Jamie is frequent guest and contributor to a wide range of financial television, radio and internet broadcasts including CNBC, Market Watch and MSNMoney. Jamie holds a B.A. in Political Science from UCLA and a Masters in Business Administration (MBA) from the University of North Carolina, Chapel Hill. He resides in Minneapolis, MN with his wife Sarah and two daughters, Julia and Ellie.

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