Market Milestones: Welcome to Gainezville

NVDA reported yet another monster quarter on Wednesday afternoon, which rocketed it to a new all-time high on Thursday morning. From its after-hours low on Wednesday to its high on Thursday, it moved a bear-scorching $140! The whole semiconductor sector saw massive gains, with most chip stocks ripping higher all day long. This strength can be seen in SMH, a semiconductor ETF, which hit a new all-time high on Thursday.

However, not all tech is participating in the NVDA and A.I. exuberance. AAPL, which has been weak since its January 2nd gap down, saw very muted buying on Thursday as it continues to struggle at the critical $180.00 support level. TSLA is another stock that was not given an NVDA rocket booster on Thursday. Right now, the A.I. element of TSLA is getting overshadowed by the uncertainty in the EV sector and TSLA’s falling margins. TSLA’s competitors, if you can call them that, RIVN and LCID, were both down over 20% on Thursday.

Do you dream about finding stocks that double in value? Do you look back at charts and say, “If only I could go back to 1995 and buy MNST or 2012 and buy Bitcoin or 1 day ago and buy NVDA?” Looking back at history's best performers can be helpful and make for great study material. It can also come in very handy during a ‘Back to the Future’ scenario. No need for a sports almanac; you just need those two trades, MNST in 1995 and BTC in 2012. You are welcome, future/past time-traveling billionaire!

We are seeking to find opportunities for sizable future gains right here, right now. The question we are going to posit today is, ‘What stocks have the potential to double in the next 5 years?’ Why five years, you might ask? Simple, it's long enough to see decent returns despite corrections, but short enough that our minds can envision holding for that duration.

In order to double an investment in 5 years, it needs a compound annual growth rate of 14.87%. When put in those terms, it is much less daunting and much more achievable. This would equate to making 15R in a trading account every year! Let’s review some of the historical returns of some common assets before moving on to assets that could see these kinds of returns. The figures below represent the annualized return over the past 10 years on some of the most common investments.

SPY 10-year annualized return: 12.51%

QQQ 10-year annualized return: 17.66%

Bitcoin 10-year annualized return: 74%

US Home Prices 10-year annualized return: 4.8%

Gold 100-year annualized return: 7.9%

As we can see from the figures above, the past 10 years have been pretty bullish for a lot of assets. The SPY, which is seen as a benchmark for investors, returned 12.51% each year during that period. If a skilled trader were to strategically sell covered calls on the SPY during that time period, it is very likely they could have made up the 2.36% each year to hit the magic 14.87% number. This means that just trading the SPY, traders could have doubled their money 2 times in the past decade!

Here is a short list of 10 names that Jerremy Newsome and I compiled that could see 100% returns in the next 5 years: : BTCUSD, SOLUSD, TSLA, AMD, NVDA, PLTR, SHOP, PINS, NCLH, and MDB. We are not going to go through them all in detail because there just isn’t time, and a chart can speak 1000 words.

First up is Bitcoin. BTCUSD has already gone up 243% since its low in 2022. It has been sitting right at $50,000 for the past 9 days, and the new bitcoin ETFs are gobbling up thousands of coins every day. They accumulated as many coins as MSTR has in under 30 days. With this increase in demand and the upcoming halving, BTC will likely be reaching six figures this year or next.

The next stock we can look at is TSLA. While I think it’s possible TSLA moves lower to fill some of the gaps below, there are a lot of amazing catalysts on the horizon for TSLA. If Elon can deliver on any of his promises with FSD, Optimus, or the Robotaxi, it shouldn’t have much problem making it back up to its all-time highs once again. TSLA is out of favor with the market during this A.I. frenzy, but the reality is that TSLA is doing a whole lot of work on A.I. behind the scenes. This could launch it back into the spotlight in the coming years.

NVDA and AMD have both had massive moves in 2023 and 2024. It was early January when Jerremy picked NVDA for a top 2024 stock and it was below $500.00. 

NVDA will certainly double from that level in 5 years if not this year. Both of these names will see astounding returns over the next 5-10 years, but it may be wise to patiently wait for a better entry price at this point in the move. You may have to wait longer than you would like for a sizable dip to appear, but it will appear, because they always do.