A struggling global economy plus shaky governments around the world are triggering a massive flow of capital toward the best available opportunities…and at the top of their list? You guessed it: U.S. stocks

Written by Mike Burnick (EdelsonWave.com)

That’s why I’m not one bit surprised that over the past eight years, the Dow Jones Industrial Average has gone up a staggering 227%. After all, capital is agnostic. It doesn’t care that governments are bankrupt or that their economies are struggling or that their currencies are deflating. The thing is, regardless of world conditions, there are always people and companies that have enormous amounts of capital to invest and capital always seeks the safest, best returns possible…and it’s these powerful and undeniable global forces that are driving the bull market in U.S. stocks and will lift the Dow to 31,000. That’s not a typo: 31,000 on the Dow – but not without an occasional market correction.

In the long history of capital markets, nothing ever moves in a straight line either up or down – there are always minor corrections against the prevailing trends and, fair warning, I see this dynamic setting up in U.S. stocks going into mid-year.

In the short-term – days and weeks ahead – the Dow Jones and S&P 500 Indexes could grind marginally higher on the back of strong first-quarter earnings season, but it won’t last. While estimates have come down, the market is looking for first-quarter earnings growth of nearly 10% from the year-ago period – that’s a very tall order, and investors could be disappointed with actual results.

That’s just one of many catalysts that will trigger a healthy and much needed market correction lasting six to eight weeks …

The above chart of the Dow Jones Index slides [down] into late June [and] this presents an excellent buying opportunity for select stocks, before they blast sharply higher again. This will be the time to purchase blue chip stocks — and their sectors — on the cheap.