Superperformance stocks: An investment strategy for the individual investor based on the 4-year political cycle

The Author writes about the superperformance stocks of the time and the common denominators of those stocks. What traits do they have in common how to find them? Definition of a superperformance stock: One that at least tripled in price and increased at a minimum rate of three times during a two-year period. A move was considered ended if the price failed to reach a new high in less than six months or if there was a price reaction of 25 percent or more. Stocks that have a chance to become superperformance stocks share some of these characteristics: * Large increases of earnings especially if the large increase comes as a surprise. * Mergers and acquisitions. * New management. * New products. The best results come after the market has experienced a severe correction or a bear market because that is the time when there would be many bargain opportunities in that environment. History often repeats itself in the stock market. The names of the stocks change but the overall situation is always similar. Acceleration of earning power is the most important thing to look for when examining the potential of a stock to become a superperformance stock. And the superperformance move will most often coincide with the bull market cycle of the general market.