Buckle Up for the New Era of Stagflation

Our first big battle with "stagflation" happened more than 50 years ago... And now, we're preparing to fight another one. [Chaikin PowerFeed]( Buckle Up for the New Era of Stagflation By Carlton Neel, CEO, Chaikin Analytics Our first big battle with "stagflation" happened more than 50 years ago... And now, we're preparing to fight another one. If you're not familiar, stagflation has two core parts. The first part is slowing economic growth. And the second is high inflation. For generations, economists didn't think this combination could happen... You see, inflation normally occurs when the economy "overheats." It's the opposite of slowing growth. Instead, rapid growth and high demand for goods push prices up. Generally speaking, a little bit of inflation is a good thing. And most of the world's central banks target a positive inflation rate. Meanwhile, we measure economic growth using gross domestic product ("GDP"). It tells us if the broad economy is growing or not. And nobody wants slowing (or near-zero) growth. We first experienced stagflation in the 1970s. Back then, it lasted most of the decade. And just last week, we learned that a new era of stagflation is upon us. This shift has big implications for America. Simply put, it looks like the bull market is over... I'm not talking about the bull market in stocks that started around 2010. I'm looking at a much larger cycle – one that began more than four decades ago. Let me explain... Recommended Links: [[NEW] Go BEYOND Bitcoin in 2022]( Expert Eric Wade’s brand-new prediction reveals what’s NEXT for cryptos... including huge opportunities floating under the radar that could 10x your money this year... and take less than $2 to get started. Don’t miss this critical new prediction – [get the details here](. [How I Saved My Retirement... and Stopped Worrying About Money Forever!]( I never worry about my retirement income, no matter what happens with politics or the markets. I’ve got legal obligations on my money. Now, a once-in-a-generation opportunity to see 700%-plus potential in my favorite strategy just opened again. [I explain everything right here](. Folks, we could be witnessing the end of a long-standing bull market dating back to 1981... My mentor and friend, [investment legend Marty Zweig]( saw this kind of change take place firsthand. And he warned me about it many times during our 18 years working together. In short, when stagflation occurred in the 1970s, it crushed the stock market... The Dow Jones Industrial Average closed at more than 1,000 for the first time in November 1972. Inflation was already becoming a problem at that point. Not long after stocks peaked in 1972, they entered a brutal bear market... The Dow lost roughly 40% of its value through 1973 and 1974. And it didn't get back above that level permanently until 1982 – eight years later. But it's worse than that... For a 16-year period dating all the way back to 1966, stocks did nothing but gyrate wildly back and forth. That's 16 years of stress and nonperformance for mom-and-pop investors. Once you take inflation into account, the devastation becomes even more obvious... Between January 1966 and August 1982, the Consumer Price Index ("CPI") rose from 95.4 to 308.6. That's massive inflation. And when combined with the do-nothing Dow, it translated to a roughly 22% nominal decline for the index over that 16-year span. That's why renowned economist Milton Friedman often called inflation "[the cruelest tax]( I'm sharing this point with you for a simple reason... A new era of stagflation is emerging again today. In March, the U.S. government said the CPI rose 8.5% year over year. That's the highest level of inflation since December 1981. And then, last week, the government told us that U.S. GDP unexpectedly shrank 1.4% in the first quarter of 2022. So in effect, the economy is going in reverse. That's stagflation. Plus, stocks are already gyrating wildly back and forth today... The S&P 500 is roughly unchanged over the past year. But when you factor in inflation across that period, 8.5% of your purchasing power has vanished into thin air. That means the breakeven price change is really an 8.5% loss. And even worse... this could just be the beginning. So now, more than ever, you need to pick the right investments. Because as we're seeing, even small winners can turn into losers when the economy is struggling with stagflation. Good investing, Carlton Neel Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +2.84% 6 19 5 S&P 500 +3.02% 108 291 97 Nasdaq +3.38% 13 61 25 Small Caps +2.68% 249 1129 513 Bonds +0.55% Energy +4.15% 17 4 0 — According to the Chaikin Power Bar, Small Cap stocks are more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Top Movers Gainers [rating] PAYC +13.78% [rating] GNRC +11.79% [rating] ENPH +9.98% [rating] SBUX +9.84% [rating] XYL +9.63% Losers [rating] AKAM -9.70% [rating] JCI -8.71% [rating] IDXX -5.65% [rating] SWKS -4.97% [rating] ICE -4.04% * * * * Earnings Report Reporting Today Rating Before Open After Close CAH, COP, EVRG, K, SRE, WRK ED, FLT, HII, VRTX, MCK, MNST APD, CBRE, EPAM, PH, PWR ZTS, XRAY, VTR, TRMB, RSG, PPL, MTD, LYV, ILMN, ICE, ES, DVA, D BDX, BLL, FRT, PENN APTV, RCL, NLOK, NWSA No earnings reporting today. Earnings Surprises [rating] LNG Cheniere Energy, Inc. Q1 $-2.65 Missed by $-4.42 [rating] BKNG Booking Holdings Inc. Q1 $3.90 Beat by $2.72 [rating] MRNA Moderna, Inc. Q1 $8.58 Beat by $2.96 [rating] ALB Albemarle Corporation Q1 $2.38 Beat by $0.75 [rating] MAR Marriott International, Inc. Q1 $1.25 Beat by $0.33 * * * * Sector Tracker Sector movement over the last 5 days Energy +9.20% Communication +7.08% Information Technology +4.92% Materials +3.51% Industrials +2.18% Financial +2.13% Discretionary +0.88% Health Care +0.69% Utilities -0.37% Staples -0.67% Real Estate -3.33% * * * * Industry Focus Pharmaceuticals Services 13 30 2 Over the past 6 months, the Pharmaceuticals subsector (XPH) has underperformed the S&P 500 by -6.25%. However, its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #5 of 21 subsectors. Top Stocks [rating] AMPH Amphastar Pharmaceut [rating] BMY Bristol-Myers Squibb [rating] ATRS Antares Pharma, Inc. * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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