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Archives for March 2020

March 2020 - Page 12 of 14 - Money Morning - Only the News You Can Profit From

How to Play This Trader's Market with Our Options Trade of the Week

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The Dow Jones Industrial Average scored 1,000-point swings on seven occasions over the past two weeks.

Remember when triple-digit moves were scary?

How about when 4% and 5% single-day moves were just for speculative penny stocks?

Since the market fell to its February 28 low, the CBOE Volatility Index (VIX) – or "Fear Index" – has spent more time over the 30-level than it did in any period since 2011.

But rather than being fearful, investors can embrace volatility to make some big money in the next year.

In fact, some of our readers have already earned up to 450% playing the volatility.

We're going to show you a similar opportunity today.

It's one Money Morning Quantitative Specialist Chris Johnson's favorite trades right now.

Read more...

The 3 Stocks to Sell Before the Coronavirus Correction Gets Worse

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The stock market is officially in correction territory, but for three stocks the bleeding is going to get much worse.

You don't want these companies anywhere near your portfolio right now.

While the Dow is down 11% from its 2020 high in February, stocks like Carnival Corp. (NYSE: CCL) have lost nearly half their value on the year.

Now, we're not advocating you sell your entire portfolio and sit on cash. That could end up costing you even more money.

But there are some stocks that can poison your portfolio.

And these are the three you don't want to own...

These 5 Stocks Will Get Crushed by China's Manufacturing Disruption

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The coronavirus is having a massive impact on manufacturing in China. And the "experts" on Wall Street are largely overlooking this problem.

You see, the lag that follows in trade will be very disruptive for companies that rely heavily on production in the world's second largest economy.

While everyone is thinking about Apple Inc. (NASDAQ: AAPL), there are many other companies that are going to take a very hard hit from the ongoing freeze in China's manufacturing sector.

Several of these may be lurking in your portfolio, without you even realizing it.

Read more...

The 2 Best Ways to Hedge Coronavirus Volatility

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Even though the U.S. Federal Reserve suddenly cut interest rates 50 basis points on Tuesday to combat the market dropping 12% last week, it wasn’t enough to calm markets down.

The day of the emergency rate cut, the Dow Jones dropped 700 points.

On Wednesday, the Dow was up 1,100 points… Only to give back most of the gains on Thursday, when it dropped another 1,000 points.

And halfway through the trading day Friday, it’s already down another 600 points.

Whether coronavirus is the event that takes out the market or not, you have to be prepared.

You need a plan.

And we’ve done the research on how to protect your money.

Here are the two best ways to hedge coronavirus fears in case this volatility continues.

Read more...

Don't Be Fooled by These "Snap-Back" Rallies - Look for This Instead

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Central banks to the rescue?

Good luck with that.

The U.S. Federal Reserve tried to swoop in and save the market panic with a 50-basis-point cut on Tuesday. But lowering rates, even a "concerted" lowering of rates by several central banks working together, in the face of already low rates, isn't going to be economically stimulative.

Central banks lowering rates now is like opening the barn door after the horses have already bolted.

Lower rates aren't going to get consumers out if they're scared to go out – or if they can't go out. They aren't going to induce capital spending by companies if companies don't know where demand will come from or when it will come back.

Besides, the flight-to-quality trading that's driven hundreds of billions of dollars into U.S. Treasuries, for example, has already lowered rates dramatically.

When the coast is clear and the coronavirus is behind us, central banks will have to start pulling back the stimulus they intend to flood economies with. Markets know that's the other side of lowering rates in an eventually passing crisis.

So no, lowering rates isn't going to put a hard and fast support under weak markets.

Markets are looking at economies and sales and revenue and earnings and profits… and now losses. Those economic realities are reflected in stock prices.

We're not out of the woods yet. But this will tell us when we are… Full Story

We're not out of the woods yet. But this will tell us when we are... Full Story

Our Newest Stock Market Predictions Show Where the Market Is Headed Next

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We're in the midst of historic volatility.

Yesterday, the DJIA rallied again, climbing nearly 1,200 points (4.6%).

Today (Thursday), it was down more than 1,100 points at session lows.

Of course, that volatility followed last week's dismal performance, when the Dow tanked more than 3,500 points (12.4%).

The reversals have been absolutely dizzying.

So we turned to our team of experts at Money Morning to determine what's next for the markets in the wake of Coronavirus fears, and the Fed lowering rates again.

Here are their stock market predictions, and how you can protect your money during this extremely volatile time...

Why the Fed Rate Cut Can't Save Stocks Right Now

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We've seen this show before.

After the stock market hits a rough patch, almost on cue, riding a noble white stallion, comes the Federal Reserve to save the day with an interest rate cut.

But this rate cut was exactly the wrong move.

Here's why, and what you should be watching for instead...

The Best Penny Stock to Buy Could Double Thanks to Coronavirus Volatility

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The coronavirus has brought volatility back to stocks.

While it might not seem like it, that's a very good thing for penny stocks.

Inovio Pharmaceuticals Inc. (NASDAQ: INO) has more than doubled since we recommended it last month – a 139% gain for our readers.

The company just announced human trials for a coronavirus vaccine.

Believe it or not, that's not the only penny stock making moves today.

Read more...

The Dow Jones Industrial Average Slides 700 Points as Coronavirus Fears Accelerate

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The Dow Jones Industrial Average is off another 700 points Thursday as investors continue the rollercoaster in the markets.

Despite yesterday's 1,000-point gain, markets continue to monitor government reactions to coronavirus and the rising number of cases on the West Coast.

The death toll in the United States has reached 11, and the number of confirmed cases has topped 160.

This morning, Facebook (NASDAQ: FB) announced plans to shut one of its Seattle offices after a contractor tested positive for coronavirus.

Read more...

You Asked, We Answered: How to Handle Your Portfolio When Stocks Correct

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Here are Money Morning, we believe you control your financial future.

But managing your own portfolio can lead to uncertainty in times like these.

If you're wondering how to make sense of what's going on or what to do next, we totally get it.

That's why Money Morning Chief Investment Strategist Keith Fitz-Gerald and his 37 years of experience in financial markets is here to help.

Today we're going to answer a few of the most common questions we've been getting from readers like you.

Read more...