The Circle of Inflation

[] 'Round and 'round and 'round it goes… Where it stops nobody knows [View in browser]( [View in browser]( [] MARCH 20, 2024 [] [] PROSPERITY PUB MARKET TALK The Circle of Life Inflation Have you noticed insurance surging lately? Car insurance, home insurance, business insurance, flood insurance. You name it, it’s up. In the case of car insurance, the Bureau of Labor Statistics showed rates more than 20% higher than last year. And just the other day, we saw that Fed Chair Jerome Powell was placing the blame for sticky inflation on insurance. So we thought we’d ask our favorite commodities trader, Geof Smith what he thought of Powell laying the blame for inflation at the foot of the insurance industry. While Geof’s answer might not surprise you, it does highlight how interconnected our economy is. Geof’s take is that insurance companies take on risk — it’s at the heart of their business. And because of the kind of runaway inflation we’ve seen in the post-Covid recovery, the cost of goods and services across the board have gone up astronomically. You’ve probably noticed it everywhere from the grocery store to the car dealership to restaurants, home repairs, healthcare and travel costs. And when everything goes up… who’s on the hook for insuring it all? Insurance companies, of course. They may not directly insure your groceries or your vacation. But as prices for goods and services soar, insurance costs naturally follow to cover the increased value of claims. This cycle creates a feedback loop where the costs of insurances across various sectors add another layer of inflationary pressure on the economy. Next time you see your insurance premium go up, remember it's a reflection of the broader economic shifts happening around us. This intricate web of cause and effect shows just how dynamic and interconnected our financial systems are, with each part influencing the other in profound ways. Speaking of insurance, our friend Jeffry Turnmire analyzed two insurance company stocks with diverging fortunes: United Healthcare (UNH) and Cigna (CI) UNH has been consolidating for over a year now, with clear resistance at the $550 level. Translation: not a lot of opportunity right now. Meanwhile, as a trending stock, CI presents a much better trade with targets at $365 or even $399. [Watch the full segment here for details](. — The Prosperity Pub Team [] [] Build The Ultimate Dividend Portfolio Nate Tucci is about to reveal his personal investing passion: How to Build The Ultimate Dividend Portfolio. Plus, he’ll be sharing his 7 best dividend stocks — for FREE! So you can set yourself up to start collecting extra income right after the workshop ends! [Click here to register your spot now!]( [] [] GUY COHEN’S TRADE RADAR This Market Needs A Pause Energy stocks have been strong, but not weighted enough to prop up the rest of the market. There are still many overbought stocks, which need to pause, while the number of really great quality bullish setups is low. Last week I gave a neutral forecast pending the reaction from Nvidia’s blow off. This week I’m more confident of new highs being unlikely. If they are breached in the short term, I would be surprised if they held. As ever, in the meantime, just trade what you see, and don’t try to preempt anything. [Click here to watch now!]( Follow the money, — Guy Cohen [] [] [] [] MARCH 20, 2024 [] [] PROSPERITY PUB MARKET TALK The Circle of Life Inflation Have you noticed insurance surging lately? Car insurance, home insurance, business insurance, flood insurance. You name it, it’s up. In the case of car insurance, the Bureau of Labor Statistics showed rates more than 20% higher than last year. And just the other day, we saw that Fed Chair Jerome Powell was placing the blame for sticky inflation on insurance. So we thought we’d ask our favorite commodities trader, Geof Smith what he thought of Powell laying the blame for inflation at the foot of the insurance industry. While Geof’s answer might not surprise you, it does highlight how interconnected our economy is. Geof’s take is that insurance companies take on risk — it’s at the heart of their business. And because of the kind of runaway inflation we’ve seen in the post-Covid recovery, the cost of goods and services across the board have gone up astronomically. You’ve probably noticed it everywhere from the grocery store to the car dealership to restaurants, home repairs, healthcare and travel costs. And when everything goes up… who’s on the hook for insuring it all? Insurance companies, of course. They may not directly insure your groceries or your vacation. But as prices for goods and services soar, insurance costs naturally follow to cover the increased value of claims. This cycle creates a feedback loop where the costs of insurances across various sectors add another layer of inflationary pressure on the economy. Next time you see your insurance premium go up, remember it's a reflection of the broader economic shifts happening around us. This intricate web of cause and effect shows just how dynamic and interconnected our financial systems are, with each part influencing the other in profound ways. Speaking of insurance, our friend Jeffry Turnmire analyzed two insurance company stocks with diverging fortunes: United Healthcare (UNH) and Cigna (CI) UNH has been consolidating for over a year now, with clear resistance at the $550 level. Translation: not a lot of opportunity right now. Meanwhile, as a trending stock, CI presents a much better trade with targets at $365 or even $399. [Watch the full segment here for details](. — The Prosperity Pub Team [] [] Build The Ultimate Dividend Portfolio Nate Tucci is about to reveal his personal investing passion: How to Build The Ultimate Dividend Portfolio. Plus, he’ll be sharing his 7 best dividend stocks — for FREE! So you can set yourself up to start collecting extra income right after the workshop ends! [Click here to register your spot now!]( [] [] GUY COHEN’S TRADE RADAR This Market Needs A Pause Energy stocks have been strong, but not weighted enough to prop up the rest of the market. There are still many overbought stocks, which need to pause, while the number of really great quality bullish setups is low. Last week I gave a neutral forecast pending the reaction from Nvidia’s blow off. This week I’m more confident of new highs being unlikely. If they are breached in the short term, I would be surprised if they held. As ever, in the meantime, just trade what you see, and don’t try to preempt anything. [Click here to watch now!]( Follow the money, — Guy Cohen [] [] [] [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](