Cash Is Retaking the Throne

Cash is king... That phrase dates back to a different time in the markets. It comes from before investors started falling in love with cash-burning, "basement-dwelling kid" companies. [Chaikin PowerFeed]( Cash Is Retaking the Throne By Marc Gerstein, director of research, Chaikin Analytics Cash is king... That phrase dates back to a different time in the markets. It comes from before investors started falling in love with cash-burning, "[basement-dwelling kid]( companies. Back then, investors focused more on managing risk. They didn't just assume growth-promising, money-losing companies would eventually figure things out. Cash really was king in those days. And investors avoided companies that didn't produce it. The expression lost its power in recent years. Investors didn't start to completely hate companies with a lot of cash. But they didn't love those companies as much, either. Instead, growth became the name of the game. And investors prioritized companies with a lot of growth potential over businesses with solid cash flows. Today, the world is hostile toward many asset classes... The Federal Reserve is aggressively raising interest rates in an effort to combat inflation. It hopes to do so without triggering a recession. Sure, it would be nice if the Fed can balance on [the "economic tightrope"]( this time. But I'll believe it when I see it. And with everything going on these days, one thing is certain... Investors are no longer as interested in hearing, "Yeah, sure, we'll make money someday." Instead, cash is becoming king yet again... Recommended Links: [Until MIDNIGHT: Claim 1 free year of the Altimeter]( It's a system that shows you which of 5,252 stocks could rise by 100% or more, by using forensic analysis from a professor who called the 2008 and 2020 crashes. In 2020 – the last time stocks were this bumpy – you could have made a 123% average gain on ALL of his picks. [Claim this $1,200 value before this offer expires at midnight tonight](. ['My wife now knows [I have] $54 million']( A hand-written letter given to an analyst left us speechless. And tomorrow, we're going to share all the details of this incredible true story with you. The best part is, the SAME incredible opportunity which helped this anonymous subscriber is here again today. And it doesn't require you to place huge bets (or take on a lot of risk) to see massive upside potential. [Click here to get this expert's trading secret revealed](. In short, many investors now want to find companies that are making money today. They can't afford to get behind companies with the potential to make money in the future. And neither can we. Fortunately, there's an easy way for us to do that... I'm talking about an exchange-traded fund ("ETF") known as the Pacer U.S. Cash Cows 100 Fund (COWZ). This ETF prioritizes companies with high free cash flow ("FCF"). That's simply the cash that comes into the company minus the cash that goes out. (Using financial jargon, FCF is "cash from operations" minus "capital spending.") More specifically, COWZ invests in the top 100 companies in the Russell 1000 Index based on "FCF yield" (FCF divided by enterprise value). And the portfolio isn't weighted based on market value. Rather, the holdings are weighted in terms of the FCF they generate. Also, the individual allocations are subject to a 2% maximum at the ETF's quarterly rebalancing. That's important... It means companies with large market caps won't distort COWZ the way a few "FAANG" stocks have overpowered the S&P 500 and its tracking ETFs. The holdings within COWZ are fundamentally strong compared with one of the S&P 500's primary tracking ETFs, the SPDR S&P 500 Trust (SPY). Take a look... [Chaikin PowerFeed] Based on those fundamentals, you might think that the stocks within COWZ would be more highly valued today than the holdings in SPY. However, they're still in the bargain aisle... [Chaikin PowerFeed] In the end, COWZ could offer investors a different form of protection in the months ahead. With a new bear market upon us, folks are getting spooked again... They don't want to look too far into the future right now. They can't afford to simply hope that companies will make money down the road. They know that cash is king once again. If you're looking for a "one click" way to get involved, consider checking out COWZ today. Good investing, Marc Gerstein Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.39% 1 25 4 S&P 500 -0.23% 9 370 117 Nasdaq +1.22% 6 64 29 Small Caps +0.80% 135 1222 533 Bonds +0.32% Communication Services +1.43% 1 16 6 — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are strongly Bearish.. Major indexes are mixed. * * * * Top Movers Gainers [rating] NCLH +10.12% [rating] CCL +9.71% [rating] ENPH +8.94% [rating] SEDG +8.44% [rating] CHTR +6.41% Losers [rating] FANG -8.52% [rating] COP -8.48% [rating] DVN -8.30% [rating] PXD -8.17% [rating] CTRA -7.30% * * * * Earnings Report Reporting Today Rating Before Open After Close PGR No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. * * * * Sector Tracker Sector movement over the last 5 days Staples -4.30% Health Care -4.46% Financial -4.76% Information Technology -4.94% Communication -5.06% Real Estate -5.08% Discretionary -5.79% Industrials -5.83% Materials -8.25% Utilities -9.07% Energy -17.16% * * * * Industry Focus Capital Markets Services 0 40 22 Over the past 6 months, the Capital Markets subsector (KCE) has underperformed the S&P 500 by -8.93%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #20 of 21 subsectors and has moved down 3 slots over the past week. Indicative Stocks [rating] MKTX MarketAxess Holdings [rating] MCO Moody's Corporation [rating] IVZ Invesco Ltd. * * * * 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}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2022 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. 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