Why the 'End of Days' Never Comes

Fears of the U.S. dollar going to zero or losing its "reserve currency" status aren't new... I've been in the markets for 30 years. And I've heard these rumblings the whole time. [Chaikin PowerFeed]( Why the 'End of Days' Never Comes By Pete Carmasino, chief market strategist, Chaikin Analytics Fears of the U.S. dollar going to zero or losing its "reserve currency" status aren't new... I've been in the markets for 30 years. And I've heard these rumblings the whole time. I've also heard that our country's debt is too high for the government to keep raising the limit. And I've heard that inflation is the "hidden tax" that will end the American way of life. Now, I can't deny that U.S. debt has risen significantly over the past few decades. And more recently, we've all learned what soaring inflation can do to our spending power. But the thing is... the "end of days" never comes. As I'll discuss today, we could see more downside in stocks in the short term. But looking at the big picture, it's still best for us to keep putting our money to work in the right places... Recommended Links: [Here's What You Missed Yesterday [Porter's Big Update]]( The government is broken... the economy is broken... financial systems are failing. So, what's next for America? Hear from Porter Stansberry, who just returned after three years with a big warning about today's market environment... what's coming next... and a dead-simple solution to protect yourself. [Click here to tune in now](. [Prepare Now: A Massive Wave of Bankruptcies Is Coming]( In 2009, Joel Litman warned investors about 57 different companies that were about to go bankrupt – 50 collapsed within days. Now Litman is stepping forward with another big bankruptcy warning. If you own a single share of stock – much less a business... a mortgage... or a loan of any kind – this will affect you. [Click here to learn more](. First, all the doom and gloom I laid out above boils down to one thing... Fighting inflation. For investors like us to do that, we need to buy good companies at the right price and time. We also need to realize that most investors buy stocks because of the "real interest rate." That's simply the rate of return on a one-year U.S. Treasury bill minus inflation. Today, the interest rate on the one-year U.S. Treasury is at its highest level in 15 years. It's at roughly 5.4%. You might think an annual return like that would be the end of stocks. After all, who wants to risk their money in the stock market when they could earn a relatively safe 5.4% every year? But something else that gets in the way of this bond-investing "end of days" scenario... "Real" interest rates. You see, the Consumer Price Index ("CPI") rose 3.7% year over year through September. So today, the difference between this inflation gauge and the one-year U.S. Treasury's yield is about 1.7%. That's the real interest rate. Plus, before the money hits your bank account, you also need to account for taxes... Now, I'm not a tax adviser. And everyone's situation is different. But here's the simple math... The real interest rate for a one-year U.S. Treasury before taxes is roughly 1.7% today. If you fall into the 40% tax bracket, you'd keep around 1% when the dust settles. That's terrible. It's why bonds are still a poor choice. And it's why stocks remain attractive for investors... Heck, General Electric (GE) is one of the oldest companies in the market. And its stock is up almost 60% since early January. No one ever expects that type of rally in bond prices. So my point is simple... A lot of folks fear the end of days once again. But real interest rates on bonds are still terrible due to inflation. As a result, stocks remain an attractive option for investors today. Before I wrap up, I want to make one thing clear... More downside in stocks is possible in the near term. But over the longer term, the upside is a lot better than the average real interest rate. That makes stocks the easy choice for investors like us. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.72% 3 21 6 S&P 500 -1.17% 46 308 143 Nasdaq -1.91% 8 77 14 Small Caps +0.29% 255 1154 526 Bonds +1.53% Real Estate +2.11% 0 9 22 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain Bearish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Utilities +2.08% Staples -0.04% Real Estate -0.15% Materials -1.59% Financial -2.05% Industrials -2.44% Health Care -2.57% Discretionary -3.92% Information Technology -3.96% Energy -5.54% Communication -5.69% * * * * Industry Focus NYSE Technology Services 1 33 1 Over the past 6 months, the NYSE Technology subsector (XNTK) has outperformed the S&P 500 by +14.25%. Its Power Bar ratio which measures future potential is Neutral, with an equal number of Bullish and Bearish stocks. It is currently ranked #7 of 21 subsectors and has moved down 3 slots over the past week. Indicative Stocks [rating] SNOW Snowflake Inc. * * * * Top Movers Gainers [rating] WTW +10.27% [rating] AMT +8.11% [rating] MAS +6.62% [rating] AOS +6.03% [rating] EQIX +5.46% Losers [rating] ALGN -24.88% [rating] WHR -15.83% [rating] HAS -11.65% [rating] WDC -9.29% [rating] ANET -8.74% * * * * Earnings Report Reporting Today Rating Before Open After Close AFL XOM, ABBV, WAB, TROW, TEL, TAP, SWK, PSX, PCG, LYB, FI, DTE, CVX, CHTR, CBRE, AON CTSH, DVA, ETSY, FSLR, GILD, HIG, META, MHK, MPWR XEL, CL, CMS, KHC, MCO, SO ILMN No earnings reporting today. Earnings Surprises [rating] INTC Intel Corporation Q3 $0.13 Beat by $0.16 [rating] AMZN Amazon.com, Inc. Q3 $0.65 Beat by $0.31 [rating] CINF Cincinnati Financial Corporation Q3 $1.21 Beat by $0.51 [rating] WY Weyerhaeuser Company Q3 $0.32 Beat by $0.11 [rating] DXCM DexCom, Inc. Q3 $0.34 Beat by $0.11 * * * * 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. © 2023 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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