Friday, February 3, 2023

🙌Here’s What Buffett Would Do Now…

Good morning. Following an explosive market rally higher over the past few days, it may be time...
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.

Good morning. Following an explosive market rally higher over the past few days, it may be time to take some serious consideration to one of Warren Buffett's most-repeated sayings: Be greedy while others are fearful… and be fearful while others are greedy.

Markets don't move up one, two, or even three percent on a daily basis for long. There will be pullbacks. And technical indicators may not be Buffett's cup of tea, but they're also pointing out that the market rally is getting long in the tooth.

Buffett's no trader. But he invests in companies that throw off cash. Typically, in periods of high-flying markets, that cash simply builds until it can be put to work buying bargains. Today's traders may want to take some profits on their most speculative and leveraged positions, and look for some downside trades for the next move lower.

Now here's the rest of the news:

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MARKETS
DOW 34,053.94 -0.11%
S&P 4,179.77 +1.47%
NASDAQ 12,200.82 +3.25%
*As of market close
Markets traded mixed on Thursday, with tech stocks surging higher.
Oil rose 0.3 percent, closing at $76.62 per barrel.
Gold dipped 0.5 percent, going for $1,933 per ounce.
Cryptocurrencies traded mixed, with Bitcoin at $23,803 at the market close.

Today's TOP TIPS
Growing Market Share Makes for Big Return Potential
There are many ways that a company's stock can rise over time. Its earnings can grow over time, indicating a more valuable company. Or the multiple that investors are willing to pay for a company can rise as well.

In today's economic uncertainty, companies that can grab increased market share are capable seeing their multiples rise over time. And chances are when the economy recovers, so too will earnings and profit margins.

» FULL STORY

Insider Trading Report: Beacon Roofing Supply Inc (BECN)
CD&R Investment Associates, a major holder of Beacon Roofing Supply Inc (BECN), recently added 107,185 shares. The buy came to a total cost just under $6 million, and increased the fund's sake by about 1 percent.

The fund last made a buy, also for about $6 million, back in October. Since then, one company division president started a 9,009 share stake, paying about $500,000. And one company EVP was a seller of shares back in November.

» FULL STORY

Unusual Options Activity: Wayfair (W)
Shares of internet retailer Wayfair (W) are down 60 percent over the past year. One trader sees that trend continuing over the next few months.

That's based on the May $50 puts. With 105 days until expiration, 14,221 contracts traded compared to a prior open interest of 416, for a 34-fold rise in volume on the trade. The buyer of the puts paid $5.05 to make the bearish bet.

» FULL STORY

IN OTHER NEWS
Labor Market Tilts Back in Favor of Management

The pandemic shifted the dynamics of the labor market in favor of workers. That's moving back to its historical trend, as pay increases have started to slow, and many executives report that they're no longer focusing as much on retaining staff. The trend is most prominent in the tech space, where headline layoffs have been a recurring feature over the past few months.
European Central Bank Raises Rates Half a Point

The European Central Bank raised interest rates by 50 basis points on Thursday, or half a percent. The move was widely anticipated, even as the US Federal Reserve slowed its pace of rate hikes to 0.25 percent, or 25 basis points. The ECB controls interest rates for the 20 countries that use the Euro.
OpenAI Launches ChatGPT Plus

Following an explosion of interest in recent weeks, privately-held OpenAI is starting a pilot plan for a subscription-based service. Plans would start at $20 per month, and offer more advanced features than the base-level ChatGPT model. The free base model will remain.
Class Action Suit Against Coinbase Dismissed

A federal judge in New York has dismissed a class-action lawsuit against cryptocurrency exchange Coinbase (COIN). The complaint alleged that the company engaged in the unregistered sale and offering of securities, and failed to register as a broker-dealer in New York.
Bugatti Sells Last Gas-Powered Model for $10.7 Million

Bugatti sold a development model car at an auction at Paris, setting a new world record with a $10.7 million sale. The car is the last gas-only powered vehicle the bespoke car manufacturer plans to make. The car was estimated to sell for $4.5 to $6 million.

S&P 500 MOVERS
TOP
ALGN  25.342%
META  22.133%
GWW 12.125%
EPAM 7.399%
GOOGL 6.726%
BOTTOM
SIRI 9.727%
APD 7.076%
QRVO 6.589%
FSLR 6.503%
AFL 6.346%

Quote of the Day
I see no signs yet that the Fed is open to 2023 rate cuts. I'm not sure the Fed is even trying for a soft landing. While they would never say so, they might prefer the restorative aspects of a recession and a proper bear market.
- Bill Zox, portfolio manager at Brandywine Global, on why those expecting the Federal Reserve to lower interest rates this year may be getting ahead of the current economic reality.

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Now he's releasing his list of the Top 11 stocks for 2023.

Click here to download this list for free.

(By clicking you agree to receive email updates and special offers from Investor Place Media.)


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