Stock Power Daily — Top Themes for 2023

Stock Power Daily: January 8, 2023. [Turn Your Images On] 2023 Mega Trend Alert: What We’re Watching [Turn Your Images On] [Chad Stone, Managing Editor]( Did markets hit snooze on the first week of 2023? It was a relatively calm week of trading, with major indexes ending the week slightly above where they started, thanks to a stronger-than-expected jobs report. But a major theme of 2022 is still at the top of investors’ minds… Inflation! The Federal Reserve is ready to maintain higher interest rates as it tries to hit its elusive 2% inflation target (only 5% or so to go!). We have a long way to go, and I wouldn’t expect the Fed to change its tune. Instead, the Money & Markets team likes to focus on what’s working now. And that’s what Stock Power Daily is all about. Research Analyst Matt Clark finds the stocks that are outperforming (or underperforming) the current market and tells you why. Because as bad as this market looks, there are plenty of people and institutions making money amid the chaos. And we have the tools you need to join them. Check out some of the highlights from Stock Power Daily below. And keep scrolling for something special in this Sunday edition: We’ve found a way to profit as tech stocks crash... --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [Don’t Buy Tech Stocks Just Yet. Do This Instead]( It’s tempting to want to bargain hunt in the tech sector, but Mike says certain tech stocks can still fall 90%. Instead, you want to use a special type of trade that can make money while stocks are falling. Doing this, with Mike’s unique system for uncovering these profits, would have exceptional gains of 596%, 379% and 213% according to a back test on some of the worst-performing stocks in 2022. But the situation is heating up, and the profits that lie in wait for investors in 2023 could be even better if they know the right steps to take. [Click here to sign up for Mike’s free talk on “The Silicon Shakeout.”]( --------------------------------------------------------------- Here are some highlights from this week’s Stock Power Daily: - [1 Critical Metals Supplier for a Massive Aerospace Boom:]( Are aerospace materials on your investment radar for 2023? They weren’t on mine, but they are now. Matt sees massive growth within this industry over the next decade, and he has one “Strong Bullish” stock to ride the momentum higher. - [Mike Carr Is Preparing for Dot-Com 2.0:]( After a brutal sell-off in 2022, Mike’s getting ready to show you how to profit as tech companies streamline their businesses and try to stop hemorrhaging money. He wants you to see there’s money to be made as these companies head lower during the Silicon Shakeout (and he’s not talking about short selling). [Click here to sign up]( for his free presentation that’s happening on Thursday. - [Cable TV Exodus Reveals 1 Sinking Streaming Stock]( Millions of Americans are cutting the cord and opting for streaming services. You might be one of them. Companies have taken notice and are offering new ways to watch popular movies and TV shows, but that doesn’t mean they are turning a profit for their investors. Here’s one streaming stock to avoid. (It’s not Netflix!) I mentioned Mike Carr’s plan to profit as the tech sector goes through a massive shakeout, but we wanted to feature a recent story from Mike to show you why tech’s exodus will continue. Keep scrolling to read the piece in full below. --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [The Silicon Shakeout]( Mike says a new shakeout is coming to Silicon Valley, one that will rival the historic dot-com crash 20 years ago. But for investors who see what’s coming, it could be the profit opportunity of the decade. [Sign up here for Mike’s free event.]( --------------------------------------------------------------- The Worst Is Still to Come [Turn Your Images On] [Michael Carr, Editor, The Banyan Edge]( The 2000 to 2002 bear market was historically bad for U.S. investors — rivaled only by the sell-off that culminated in the Great Depression nearly a century ago, when stocks fell four years in a row. A lot was written this past year comparing our recent sell-off to the tech rout experienced 20 years ago. On the one hand, money was concentrated in high-growth, innovative tech names, similar to the dot-com bubble. Yahoo! Finance published an article recently saying how consecutive year-long sell-offs are rare. But they do happen — and when they do, the second year is almost always worse than the first. There are several factors to consider. For one, the U.S. economy has yet to enter a recession, but the concession is that it will happen sometime in 2023. Markets usually bottom only after a recession has been confirmed (and sometimes well into the recession). That means there is still the potential for significant selling. I’d like to explore the possibility that this sell-off could indeed be worse than the comparable tech wreck in the early 2000s. The way I see it, there are three headwinds facings markets today that weren’t present 20 years ago. The first is valuations. In the late 1990s, one sector of the market led stocks higher — tech. This is why the Dow Jones went sideways for much of that bear market, only dropping below the pivotal 20% level after the terrorist attacks on September 11. Our more recent bubble has been described as the “everything bubble.” Stocks across the board, as well as global bonds and housing, reached grotesque price levels. Even gold has struggled. When there are no places to hide, prices across the board can deteriorate fast. The second reason is historic inflation — a topic I’m sure you’re as sick of as I am, but it needs to be discussed. The current cycle is like the 1970’s inflation bubble and 1990’s dot-com bubble got together and gave birth to an even greater crisis — taking the worse elements of each and merging them into one. During an inflationary crisis, growth stocks face 100-foot hurdles. When the cost of essential goods like food and energy are expensive, consumers sacrifice discretionary items and conveniences — the types of goods growth stocks specialize in. This is about survival. During next Thursday’s Silicon Shakeout event, I’m going to share a truly horrifying chart showing how consumers are the most financially stretched they’ve been in 20 years, with credit card and other forms of debt at 20-year highs, and personal savings at 20-year lows. Finally, after declining for 40 years, interest rates are on the rise in what I’m predicting will be a multiyear, if not multidecade, cycle. Most growth stocks are heavily leveraged. They’re funded by debt, meaning they’re money-losing operations. That’s OK when debt is cheap. But when interest rates make funding debt too expensive, the risks of funding a money-losing company begin to outweigh the potential rewards. This is why venture capital investment plummeted 50% over the last year. That’s three reasons why this will arguably be worse than the dot-com crash — and why some of the most popular tech names still have a ways to go before they bottom out. Now that this trend is firmly established, I’m going to be looking to trade some of these speculative names to the downside. I’ve created a new investment system for the occasion — my Shakeout Profit system — and over the next week, I’m going to be sharing some of the best returns it uncovered during my back test of the 2022 sell-off. While many investors will be running for the exits, I’m going to be looking for opportunities to capture multibagger returns in a matter of weeks or months. This could make for a very exciting year as the sell-off many are hoping and praying is over continues to heat up. [Click here to sign up for my Thursday presentation where I’ll reveal more about this strategy.]( Your guide to Shakeout Profits in 2023, Michael Carr, CMT, CFTe Research Analyst, Money & Markets Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. 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