Category

COVID-19 Stock Market Crash

Retirement

Our Shift in Retirement Planning Has Made Us All Dependent on the Stock Market (and What to Do About It)

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks - • Print | Email

We're in the middle of the worst global health crisis since 1918. That in turn has precipitated the worst economic crisis in 12 years, though it may very well prove to be worse than the decade-long Great Depression of 1929.

Unemployment is at record highs; Thursday's print of 1.877 million new claims was worse than expected, and would've been unthinkable as recently as Presidents Day.

The world is wracked by the worst geopolitical tension since the fall of the Soviet Union in 1991, and our cities are inflamed by the worst civil unrest since Martin Luther King, Jr., was assassinated in 1968.

And the markets are within sight of their February highs. The Nasdaq is up almost 8% for the year; the Dow Jones and S&P 500 are off just 8% and 4%, respectively.

And still the Nasdaq is up almost 8% for the year, while the Dow and the S&P 500 are down only about 8% and 4%.

The market is a big, complicated, discounting mechanism. In Business 101, we're taught stock prices reflect future earnings.

But, on balance, companies are not going to make 4% or 8% less than they would during good times. No, the drop in earnings for the second quarter of 2020 is going to be much, much steeper.

But if you listen to the news media, or investment banks' analyst desks, or to government officials, they'll repeat this old story about "future earnings" anyway.

Folks, this is probably the biggest Reality Gap in the country right now. It's the Reality Gap of the decade. And, as always, there are big profits to be had in that gap.

You see, stock markets are no longer about owning a share of a company's future earnings. It's no longer an arena where investors win by making the best long-term predictions, and traders win by predicting what investors will do next.

The truth is that the Big Four – News Media, Madison Ave, Big Government, and the Wall Street Heavyweights – have together turned stock markets into something else altogether.

The Big Four have turned rising markets into a good, much like tap water, public libraries, or electric utilities.

Once you see how and why that's happened, profits await… Full Story

Once you see how and why that's happened, profits await... Full Story

Trading Strategies

How to Profit from Big-Money Stocks for Pennies on the Dollar

By , Quantitative Specialist, Money Morning - • Print | Email

Shelling out money for shares that cost $1,000 apiece can be off-putting, no matter their actual value or how well they perform.

Never mind that "cheap" is often cheap for a good reason; there's an understandable, but mostly incorrect, perception that the lower the share price, the better the bargain.

But it's undeniable: Stocks like Alphabet Inc., Autozone Inc., and Chipotle Mexican Grill Inc. are all caught up in dynamite trends.

They're far outpacing the market, and there's no reason for them to stop anytime soon.

And yet, plenty of regular investors take a look at the quote and think they'll have to settle for fractional shares, or worse, give the company a miss altogether.

So today, our Chris Johnson is going to share the cure for "Stock Sticker Shock."

So today, I'm going to share the cure for "stock sticker shock." Anyone can use it to ride mammoth profit trends in pricey shares for a fraction of the cost of holding them...

Wall Street

How Is the Economy Doing: Short- and Long-Term Economic Impacts of COVID-19

By , Money Morning - • Print | Email

As fears about the pandemic grow, global markets are seeing trillions of dollars disappear as the economic impact of coronavirus wreaks havoc on economies across the world.

As we move toward a recession as a result of COVID-19, what exactly can you expect from the stock market and U.S. economy?

Will it get worse before it gets better?

Is there opportunity to be had in stock market futures or the U.S. economy in general?

What can you expect as a result of COVID-19?

It seems as if we haven't yet reached the bottom of the market, so we asked our leading experts to share their COVID-19 market insights to help you make money no matter what happens next.

Read More…

Trading Strategies

Here Are Two Ways to Be Bullish on Hertz Without Losing Your Shirt

By , America's No. 1 Pattern Trader, Money Morning • @powerproftrades - • Print | Email

The COVID-19 pandemic may have been the classic "last nail in the coffin" for Hertz, but this company has been in trouble for four years now.

And with travel at a standstill, Hertz was out of time, money, and options.

So just last week, it filed for Chapter 11 bankruptcy.

But a week into its bankruptcy, and there's still no credible restructuring plan.

Now, ordinarily, investors wouldn't want to touch this stock with a 10-foot pole, especially from a buy and hold perspective.

Billionaire investor Carl Icahn might agree… after sinking $1.88 billion into the stock over the past six years, he recently sold his Hertz shares for a whopping $0.72, just about $40 million.

But Icahn (and 99% of investors) missed the move Tom's about to show you today.

Today, I'm going to show you how to intelligently assess your risk/reward potential to play Hertz for profit...

Trading Strategies

The Long and the Short of It: How to Profit from the Trends Driving the Dollar

By , Executive Producer, Money Morning - • Print | Email

Over the weekend, Goldman Sachs released a note revealing that it's betting against the U.S. dollar, anticipating that even more investors will rush into the stock market as the U.S. economy reopens.

Plus, the Fed and Congress' massive effort to provide liquidity to the economy has dramatically expanded the central bank's balance sheet and sent U.S. debt levels to sky-high levels.

In fact, by the end of this crisis, the Fed's balance sheet could easily top $10 trillion.

In addition, the threat of another wave of coronavirus and increasing unrest across America could reduce the dollar's status as the world's reserve currency.

There are other threats that continue to creep in, just under the radar.

And whether your investing style is aggressive, conservative, or somewhere in between, there are ways to profit...

Trading Strategies

Make Sure You're Using This Free, Simple Profit Protector

By , Quantitative Specialist, Money Morning - • Print | Email

While the S&P 500 has moved back above 3,000 for the first time since late February and many investors are enjoying the long-side profits, it's important to remember that you shouldn't rush in unprotected.

Especially investors who now have even bigger portfolios to defend.

You see, the market could turn vicious in a heartbeat.

On the one hand there are the economics risks of the coronavirus and on the other, the "money migration" that was sparked by that same technical breakout above 3,000 is also a signal that we could walk into an overextended, "overbought" situation in the market.

That means hedging is more important than ever.

But there's another hedging move that's even easier - and it won't cost you a dime...

Trading strategies

How We'll Surf (and Trade) the Looming Bankruptcy "Tidal Wave"

By , Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email

Thousands of American companies – many of them publicly traded – are sliding towards bankruptcy.

The U.S. Federal Reserve is buying the bonds of some failing companies in an effort to keep them alive, but this is one strategy that's not going to work.

The coming tidal wave of bankruptcies will overwhelm the Fed's rescue efforts and could sink the stock market.

And here's how you can take the bit of "market intelligence" we're going to give you today - and turn it to your personal advantage...

Trading Strategies

Here Are the Masters of the New Retail Universe

By , Quantitative Specialist, Money Morning - • Print | Email

Catchphrases like the "Death of Retail!" or the "Retail Apocalypse!" have been flying all over the media for around a decade now. Whales like Amazon and Walmart have been crushing the competition since way, way before the coronavirus upended life and commerce around the world.

Just take a look at this exchange-traded fund. I've been talking about it in my Markets Livestream because it's returned almost 5% this year. I'm talking about the ProShares Decline of the Retail Store ETF. And get this: It's trading under the ticker EMTY.

The name and ticker say it all, but still… Ouch. Someone on Wall Street has an edgy sense of humor…

In 2019, more than 9,300 store closings were announced, and the COVID-19 pandemic promises to eclipse that grim record. I'm reading now that Cushman & Wakefield estimate a whopping 12,000 big chain stores could fold in 2020.

Look – it would be unfair to lay all of this at the feet of Amazon and Walmart; for retailers, business conditions can be fluid at the best of times, and the COVID-19 pandemic has been absolutely brutal for most of the consumer spending-driven U.S. economy.

So the big players have clearly cemented their positions. But here's the thing: They're not the only game in town. Nor is all retail dead – not by a longshot.

It's just that, to use an "SAT word," retail has almost completely bifurcated; there are now two separate retail sectors emerging.

Let me tell you all about the one you want to be in for the long haul… Full Story

Let me tell you all about the one you want to be in for the long haul...

Trading Strategies

The Two Stocks to Buy amid Market-Media Tensions

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks - • Print | Email

Many stocks, with a few exceptions, moved up last week. Clearly, investors are seeing some cause for optimism out there, pushing the Dow back over 25,000.

But you couldn't tell that from the news. I'm looking at a CNN headline chyron right now, for instance, that reads: "COVID-19 cases are rising in 18 states." The business section leads with "Markets are pushing higher as lockdowns ease. But huge risks remain."

However, in that same business section, decent gains are being reported, too.

So there's clearly a "Reality Gap" between those negative headlines and the prevailing, generally positive mindset and upward moves in the markets.

In that gap, there's plenty of room for making money… Full Story

In that gap, there's plenty of room for making money... Full Story

Marijuana Industry

Three Powerful Forces Are Converging on the Cannabis Industry

By , Director of Cannabis Investing Research, Money Morning - • Print | Email

While 20 million to 30 million unemployed Americans is a tough number to stomach, one bright sector of the economy will help many of those affected reinvent their careers – cannabis.

Leading companies like Cresco Labs Inc., Curaleaf Holdings Inc., and Green Thumb Industries are proving that cannabis legalization is a key part of getting people back to work and getting the economy back on its feet.

These companies are still selling, building, and yes, even hiring.

And because of three powerful forces converging on this industry, cannabis will soon prove to be the biggest builder of tomorrow's fortunes.

Here's our Don Yocham with all the details...