Down markets are scary, but missing recoveries is worse
Jan 23, 2023Good morning!
The S&P 500 is up 13.8% off October lows coming into this week’s earnings extravaganza.
I hope you’ve capitalized on the run—considering how many times we’ve talked about doing just that, and the companies we’ve frequently talked about.
The numbers won’t be nearly as important as what the execs have to say.
This is the week to hedge, even as you remained focused on the path to profits!
Here’s my playbook.
I LOVE down market days
Many investors want the “ups” but live in fear of the “downs.”
Me?
I live for the “downs” especially when it comes to Microsoft, Tesla, and Visa. That’s because I know every dollar I spend when stocks are kicked to the curb means more “ups” somewhere down the line. I talked about all three this morning during an appearance with the fabulous Stuart Varney on Fox Business. (Watch)
You know what to do. And if for some reason you don’t, or you’d simply like some help, you might enjoy One Bar Ahead®. People from around the world tell me they’re more confident, better educated, and more effective investors because they’re reading along. I’d love to earn your trust, goodwill, and business. Upgrade to Paid
Hedging so easy, anybody can do it
“Hedging” is one of those trigger words that makes the average investor break into a cold sweat.
There’s no need to be scared.
I believe anybody can learn to hedge quickly, easily, and effectively using a few simple investing tools and commonly available indicators that are already included for free in most investment platforms. And, of course, a very specialized group of ETFs called inverse funds that can help give you and your money a smoother ride if the SHTF.
I invite you to check out my report, Your 5-Minute Guide to Hedging. If you’re an OBAer, it’s already yours free. If you’re not, you can buy it here.
Goldman Sachs isn’t so golden these days
Goldman Sachs plans to reduce the $59 billion of alternative investments that contributed to a 39% decline in net revenue to $13.4 billion in 2022.
The company says it wants to focus on other things, but I think there’s a simple translation… CEO David Solomon isn’t as hip or, apparently, as good an exec as many thought when he took over in 2018. (Read)
MyPOV: The move could lead to a massive shift in the company’s real estate portfolio that places additional pressure on already soft home prices. Might be time to buy your dream home, particularly if you’re flush. (Read)
JPM, BoA: If you can’t beat ‘em, join ‘em
Reports are flying this morning that JPM, BoA, Wells Fargo, and other banks are teaming up to fight back against Apple Pay. Visa and MasterCard are reportedly both already on board. (Read)
Good luck with that.
There’s only one bank worth investing in, and you don’t bet against Apple, and you don’t mess around with Jim (which, at this risk of dating myself, still remains one of my favourite songs)! Upgrade to Paid
Eggs now so expensive, they’re being smuggled across the border
This is one of those stories that everybody should be thinking about, but very few are. Things are so bad here that even the neighborhood egg stands are now $5–6 a dozen whereas prices were $3–4 just a year ago. 🐔
Egg seizures are up 108% at the southern US border, according to Customs and Border Protection (CBP). (Read)
Two things stand out: 1) Inflation still isn’t under control, which is kinda obvious; and 2) there will be record profits for anybody producing eggs.
Hmmm...
CALM +36.44% last 12 months.
Bottom Line
Down markets are scary.
But missing recoveries is terrifying.
As always, let’s get out there and MAKE it a great day!
Keith 😊