Wednesday, February 7, 2024

🌀The Latest Excuse for the Market’s Rally Goes Back Eight Years

Good morning. The current bull market started following seller exhaustion in 2022. But 2023 and...
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. The current bull market started following seller exhaustion in 2022. But 2023 and the rise of generative AI led to a surge higher for tech stocks. Now, the market has rallied the past few months as the Federal Reserve has stopped hiking interest rates, and has hinted the next move will be lower.

But now markets are looking at another potential big trend: Donald Trump's return to the White House. One CIO even suggests that investors buy any market pullback this year, as a second Trump term would likely mean a favorable tax and regulatory environment for investors.

It's a little early to tell, even if Trump has been the winner in primary voting so far. For now, investors should look to the likelihood of a pullback or two before the election, and look for ways to profit from there.

Now here's the rest of the news:

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For the first time that I've ever heard of…a bubble is about to burst on a schedule.

Yes, we know the date when everything is going to change in the financial markets.

As usual, the rich and elite are already way ahead of this. The good news is, there's a simple 3-step process to insulating yourself from this bubble.

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MARKETS
DOW 38,521.36 +0.37%
S&P 4,954.23 +0.23%
NASDAQ 15,609.00 +0.07%
*As of market close
Markets edged higher on Tuesday, amid a busy day for earnings.
Oil rose 1.0 percent, closing at $73.49 per barrel.
Gold advanced 0.5 percent, ending at $2,052 per ounce.
Cryptocurrencies trended higher, with bitcoin at $43,145 at the stock market close.

Today's TOP TIPS
This Subset of the Big Tech Growth Trend Will Lead to Surprising Winners
Investment capital continues to pour into artificial intelligence projects. As the software improves, better hardware is needed to run more advanced programs. And better facilities are needed to house and operate the hardware operating the software.

That's why some non-tech stocks are taking off now. They're a stealth play on the AI trend, and can continue to benefit from its long-term rollout. And these companies can benefit from other trends that happen along the way.

» FULL STORY

Insider Activity Report: Selective Insurance Group (SIGI)
Terrence Cavanaugh, a director at Selective Insurance Group (SIGI), recently bought 1,000 shares. The buy increased his stake by 6 percent, and came to a total cost of $98,470.

This marks the first insider buy since last June, when another director picked up 351 shares at a cost of $35,355. Otherwise, one director has been a seller of shares over the past year. SIGI's President and CEO has also sold shares, to the tune of over $2.2 million in 2023.

» FULL STORY

Unusual Option Activity: Meta Platforms (META)
Social media operator Meta Platforms (META) has been soaring higher following its latest earnings beat and after announcing it will start paying a dividend. One trader sees shares rising further in the coming weeks.

That's based on the March 1 $465 calls. With 23 days until expiration, 4,832 contracts traded compared to a prior open interest of 185, for a 26-fold rise in volume on the trade. The buyer of the calls paid $12.95.

» FULL STORY

IN OTHER NEWS
Mortgage Rates Top 7 Percent Again

30-year, fixed-rate mortgages rose to 7.04 percent this week, for the first time since December. Mortgage rates topped 8 percent last year before they started to decline. Rates have risen as economic data has come in strong, indicating that the Federal Reserve will take longer to raise interest rates.
Treasury Officials Head to China to Discuss Economy

A team of five Treasury officials are heading to Beijing this week, for a series of meetings with their Chinese counterparts. The trip is part of an advance return by Treasury Secretary Janet Yellen later in the year. Officials will be discussing China's trade tactics and the country's use of non-market economic practices.
Home Sale Commissions Under Fire

The commission for selling a home remains at 6 percent, even as other financial innovations have driven commission costs down in other parts of the economy. Real estate brokers are looking to fight back following a Missouri court's ruling that put a $1.8 billion penalty against a number of brokerage firms last year.
Full-Floor Fifth Avenue Apartment Sells of $61.58 Million

A 6,300 square foot apartment unit at the Aman on New York's Fifth Avenue has sold for $61.58 million, well under the original asking price of $70 million. The unit is a full-floor unit, and was purchased by a private equity executive based out of Hong Kong.
Snap to Lay Off 10 Percent of Staff

Snap, the parent company of Snapchat (SNAP), is looking to lay off about 500 workers, or about 10 percent of their staff. The company sees the move as a way to support further growth for the platform. The company expects most of the layoffs to occur in the first quarter of 2024.

S&P 500 MOVERS
TOP
GEHC  11.068%
DD 7.319%
NTES 6.506%
TCOM 5.453%
MAC 5.34%
BOTTOM
FMC 10.659%
CHTR 4.746%
MELI  4.091%
AMD 3.989%
ADBE 3.916%

Quote of the Day
It's a recalibration of expectations around how soon the Fed will pivot. The pivot trade is being unwound to a certain extent. The tension between a strong economy and what that means for the Fed is likely to continue to create these kind of reset days.
- Keith Lerner, co-chief investment officer at Truist, on the market's pullback in recent sessions as traders reevaluate when interest rates will likely start to come down.

Sponsored Content
The Next 6 Months Could Cost you Everything
"Safe" investors who don't get out of cash now could lose everything over the next six months.

For the first time that I've ever heard of…a bubble is about to burst on a schedule.

Yes, we know the date when everything is going to change in the financial markets.

As usual, the rich and elite are already way ahead of this. The good news is, there's a simple 3-step process to insulating yourself from this bubble.

To find out when the bubble is going to pop and how to get ahead of it, watch the FREE video here.


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