You're receiving this email as part of your subscription to Lou Baseneseâs Trend Trader Daily [Unsubscribe](. [Trend Trader Daily] [Charts] Meme Stocks, Green Stocks and Rents Friday, August 19, 2022 Itâs Friday in the Trend Trader Daily Nation. And for the newbies in our midst, hereâs what that means: Every Friday, I curate a handful of graphics to convey some important investment insights. All it takes is a quick glance â and youâll be up to speed and poised to profit. In this weekâs edition, weâre shining the light on: - The return of irrationality and meme stocks.
- The three areas of the market benefiting from a massive influx of fresh capital.
- And yet another damning housing stat⦠So letâs get to it... > ADVERTISEMENT < Biden to Replace US Dollar? Thanks to President Biden's Executive Order 14067, a former advisor to the CIA and Pentagon predicts the 3rd Great Dollar Quake has begun. The first was Roosevelt confiscating private gold in 1934. The second was Nixon abandoning the gold standard in 1971. Now, Biden's plan could pave the way for "retiring" the US dollar. Your dollars could soon be confiscated â or made worthless. [Click here to see how to save your investment and retirement accounts.]( Meme-Stock Mania Returns If it feels like individual investors have (finally) returned to the stock market, youâre not wrong! Heck, a [20-year-old college student]( recently amassed a 6.2% stake in Bed Bath & Beyond Inc. (BBBY) and turned it into a $110 million windfall. Hard to say heâs sticking it to the Wall Street machine, though. Not when you consider he amassed $27 million from family and friends to put on the trade. How many 20-year-olds do you know that have that kind of network and pull? Exactly! While he might be the newest poster child for the meme-stock mania, heâs far from a champion of everyday investors. In any event, thereâs no denying that retail investing as a total percentage of stock market activity has rebounded. So far in August, retail investors put an average of $1.35 billion to work in U.S. stocks every day, according to Vanda Research. To put that into perspective, weâre on pace for the highest level of retail transactions since the bull market peaked in January. Hereâs a list of their most desired targetsâ¦
(click image to enlarge) Whatever you do, donât get sucked into this mindless mania. As Iâve long contested, the meme-stock craze makes no sense. At all. Simply put, thereâs no logic in bidding up shares of dying or seriously dysfunctional companies like AMC Entertainment Holdings, Inc. (AMC). With that in mind, another name on the most-traded list should stand out to you: Meta Platforms, Inc. (META). Thatâs because Iâve railed against the argument that itâs dirt cheap and destined to surge. Donât fall for it. Itâs a value trap, which I warned about [here](. From One Mania to Another One mania that I can say makes complete sense is this: the record amount of capital pouring into infrastructure funds targeting solar power, cell towers, and data centers.
(click image to enlarge) Our future is undeniably digital, which means weâll need more and more mobile coverage and cell towers. Our future is increasingly renewable, too. Especially given the latest legislation to pass in the United States. With so much âsmart moneyâ pouring into these three areas of the market, weâd be foolish not to follow their lead. Especially since these are all market segments that can thrive as inflation runs hotter-than-normal. So stay tuned for future updates with specific opportunities in each of these three categories. Another Housing Headache Months ago, I started sounding the sirens about an imminent downturn in the runaway residential real-estate market. As always, my strong convictions were entirely based on the data. And they proved accurate, as I shared recently how the housing market is definitely rolling over. Iâm not going to add any more data-fuel to that fire, even if it is available. Instead, I want to focus on another real estate market: rentals. Forget being isolated to big cities, rents are rising, well, everywhere. According to census data, national rental listing prices rose 23% in the second quarter, compared to the same period in 2019.
(click image to enlarge) Rising rents, coupled with historically high house prices, makes it hard for people to live. It also creates inflationary pressure. Like Iâve been saying for months, inflation pressures across many areas of the market are easing. But not everywhere. And weâre not out of the woods yet. Put more simply, expect another rate hike or two before the yearâs out. FOR TREND TRADER PRO READERS ONLY
> [LEARN MORE]( < Ahead of the tape, Lou Basenese
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