What to Buy Now

The bear is stirring. And why not? The scent of blood is in the air, after all. But now is when the biggest opportunities arise for the market. The bear is stirring. And why not? The scent of blood is in the air, after all. But now is when the biggest opportunities arise for the market. [Wealth Daily logo] What to Buy Now By [Jason Simpkins]( Written May 24, 2022 The bear is stirring. And why not? The scent of blood is in the air after all. The Nasdaq tripped out of the gate to start the year. More than a bear market, tech stocks are down 28% year to date. Now the Dow and S&P are faltering too, on the brink of bear territory with respective declines of 14% and 18%. It’s hard to watch. No one likes to see their stocks go down. But on the other hand, we all knew this was coming. We’ve been writing about it for months. That’s how long the Fed has been telegraphing a willingness to crush economic growth in a (somewhat futile) effort to rein in inflation. I will admit that I didn't believe it at first. I thought it was just bluffing. But by April, even I’d wised up and realized my worst fears had come to fruition. That’s when I predicted a major correction was in store. It’s also when I looked at the first-quarter GDP numbers and realized consumer spending was about to crater. “Some analysts (especially those working for the Biden administration) chose to focus on the silver lining by suggesting a 0.7% increase in consumer spending is evidence of underlying strength, but I don't know why they'd expect that to continue,” I wrote. Citing things like higher inflation, meager wage gains, fading consumer confidence, lower savings rates, and impossibly high housing costs, I could see (we all could, really) that Americans had simply hit a wall. “Given all that, this rosy belief that the unflappable U.S. consumer will continue to drive economic growth with their bottomless pockets seems pretty crazy,” I concluded. And this week, we learned that, unfortunately, I was right. ---------------------------------------------Advertisement--------------------------------------------- Could This $20 Super-Battery Maker Dethrone Tesla? Could this $20 stock destroy Tesla's electric car empire? Louis Navellier reveals the ticker symbol of the company working with this breakthrough battery technology in this exclusive presentation. [See it HERE.]( --------------------------------------------------------------------------------------------------------------- First-quarter earnings from numerous retailers, including two of the nation’s biggest — Walmart (NYSE: WMT) and Target (NYSE: TGT) — fell short of expectations and forecasts are getting gloomier. Target said net income in the quarter fell to $1.01 billion, or $2.16 per share, from $2.1 billion, or $4.17 per share, a year earlier. And the company’s adjusted earnings per share of $2.19 fell well short of the $3.07 that was expected. Walmart’s net income for the quarter fell to $2.05 billion, or $0.74 per share, compared with $2.73 billion, or $0.97 per share a year ago. And its adjusted earnings were $1.30 per share, which was $0.18 per share less than what analysts expected. Kohl’s (NYSE: KSS) saw its same-store sales fall 5.2% and cut its guidance for the fiscal year. It also missed analysts' estimates, posting adjusted earnings of just $0.11 per share. “The year has started out below our expectations,” said CEO Michelle Gass. “Following a strong start to the quarter with positive low-single-digits comps through late March, sales considerably weakened in April as we encountered macro headwinds related to lapping last year’s stimulus and an inflationary consumer environment.” Two other major retailers, Lowe’s (NYSE: LOW) and Home Depot (NYSE: HD), also reported weak results. Lowe’s comparable sales fell 4% in its first quarter, and Home Depot said fewer people are coming into its stores. This not only tracks with the overall slump in spending but also a cooling interest in the housing market, which we all know to be overpriced. This is our new reality. And unfortunately, it’s going to get worse — primarily because inflation isn’t going anywhere. Prices are going to stay high and even continue to rise for reasons that are beyond the Fed’s control. At the same time, the Fed is going to keep bludgeoning the economy with rate hikes until the economic consequences become too much to bear. As with inflation, the central bank will be slow to recognize what’s happening. It won’t be until companies start laying off workers to protect their profit margins that the Fed realizes it’s gone too far. ---------------------------------------------Advertisement--------------------------------------------- The New Emperor of Energy Storage You’re looking at the future of a $3.3 trillion industry. Thanks to this groundbreaking innovation, clean energy can be fed to the power grid 24/7... Regardless of whether the sun is shining or the wind is blowing. I call it the "Newton Battery," and it crushes every other battery on the market. The Swiss and the Saudis are already using it. And grids across the globe will be using this battery before we know it. It’s all possible thanks to one tiny company’s patented tech. The best part is that 99% of investors have no idea that it just went public... [Get in on the ground floor now, before it's too late.]( --------------------------------------------------------------------------------------------------------------- That’s when the FOMC will second-guess its hawkish monetary policy and ultimately start unwinding the rate hikes it’s suddenly gotten so gung-ho about. The question then is what do we do? How does one invest in this market? Well, first, I’d look at discount retailers... Companies like TJX Co. (NYSE: TJX) that specialize in selling. Costco (NASDAQ: COST) might also be worth a look. It’s been absolutely hammered lately, but it could turn things around if more consumers return to bulk bargains. I also don’t mind telling you that just last week I recommended Kroger Co. (NYSE: KR) to my Wall Street’s Proving Ground subscribers. Kroger is the biggest pure-play grocery company there is. It’s the largest U.S. supermarket chain by revenue and the third-largest overall retailer behind Amazon and Walmart. Kroger has been around since 1883, and in its 139-year history it’s outlasted a wide-ranging multitude of recessions, depressions, wars, and pandemics. It’s like a weathered lighthouse, never ceding a single brick or wobble to the many waves that have washed over it. It’s not the sexiest recommendation I’ve ever made, but that’s the environment we’re in right now. It might also be time to revisit gold. I gave up on gold when it went unmoved by inflation, but now, its reputation as a time-honored safe haven could serve it well. If that’s a direction you want to go, you should definitely [check out Luke Burgess’s latest report on one of the richest gold discoveries]( of the past several decades. That could do quite well. In any case, despite all the bloodshed, it’s actually not a bad time to add to any long-term holdings you might have, including companies like Target and Walmart. I wouldn’t panic-sell those. Just stay patient. That’s the best advice I can give right now. Fight on, [Jason Simpkins Signature] Jason Simpkins --------------------------------------------------------------- This Tiny Firm Just Cracked the Code to Endless Energy… This Is Like Buying Oil in the 1970s On May 8, California announced its electricity is powered almost 100% by renewable energy for the first time in history! Laura Deehan, the executive director for Environment California, says that “solar plants play a really big role” in this historic event. This is great news for the clean energy industry… But there’s one major problem with this approach… The majority of this energy vanishes overnight whenever the sun sets, leaving the state dependent on its natural gas plants. And as long as solar panels rely on sunlight, solar will NEVER be a reliable source of renewable energy. But that’s all about to change thanks to what I call “Endless Energy.” At first glance, this might appear to be just a clear piece of plastic… But looks can be deceiving, because this device is capable of turning every home, skyscraper, hospital, stadium, and school in the world into its own power planet… Capable of generating an endless, 24/7 supply of clean energy seven days per week! This device is about to completely revolutionize the solar industry in the coming months… And it could potentially give investors like you at least a 9x return on your initial investment. [Here’s everything you need to know.]( --------------------------------------------------------------- This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here]( and view our privacy policy and information on how to manage your subscription. To ensure that you receive future issues of Wealth Daily, please add customerservice@angelpub.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. Wealth Daily, Copyright © 2022, Angel Publishing LLC. All rights reserved. 3 E Read Street, Baltimore, MD 21202. Your privacy is important to us – we will never rent or sell your e-mail or personal information. Please read our [Privacy Policy](. Neither the publisher nor the editors are registered investment advisors. 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