Sunday night’s episode of the hit drama “Game of Thrones” on HBO had an unexpected visitor to its medieval-ish fantasy world: A plastic-lidded takeaway cup bearing what looked like a Starbucks logo. Whether an on-set mishap or a curious bit of product placement, the appearance drew plenty of chatter on Twitter.Continue reading “Long SBUX, perfect product placement next to giants milk”
President Donald Trump intensified pressure on China to strike a trade deal in Washington this week by threatening to more than double tariffs on $200 billion of the Asian nation’s sales to the world’s largest economy. This is right in time for sell in May and go away!Continue reading “So Much For New Market Highs?”
Forget the hottest trends in game counsels for a second. Think long term. Will Nintendo be there? The Pokémon craze has topped out. The Nintendo Switch is selling but nothing crazy. All seems calm. For now. Continue reading “Nintendo Might Be Worth Playing (NTDOY)”
The holy grail of baseball card collecting is the 1952 Topps Mickey Mantle rookie card. If you were born before 1985, there’s a good chance you already knew this. Millennials are not baseball card collectors. It’s not a growing trend being picked up by the youth. Card makers have gone to extravagant lengths to keep the hobby alive, including fastening actual fragments of athletes jersey to cards, special sets of shiny refractor cards, rare one of a kind cards and special autographed cards. It’s not a booming industry, per se, but its still alive and well. Continue reading “Sports Card Collectors Could Make This Stock A Buy (CLCT)”
Investors have been told to be patient before investing in this resource for a long time. Perhaps now investors should consider this sector ready to take off. The water infrastructure investment boom is here. The EPA estimated that over 1 trillion dollars will be needed over the next 30 years just to maintain the viability of basic water infrastructure. That sounds like a good long term investment. Continue reading “Water Is The New Gold (PHO)”
Mym Nutraceuticals (MYMMF) is an over the counter penny stock. These type of stocks are inherently riskier than traditional stocks traded over exchanges. However, this one deserve serious consideration. With the recent sell off in the sector, the buy conditions couldn’t be better.Continue reading “This Penny Stock Is About To Pop (MYMMF)”
If you follow these two rules, you will never have a losing trade. First? Buy low. Second? Sell high. Sounds easy, right? Well, here we are, hovering at nearly 5 year lows and after a long and bumpy ride, precious metal investors want to know, “Are we there yet?” Continue reading “Freeport McMoRan Is A Buy (FCX)”
Oh boy we need that plunge protection tomorrow… or not. Continue reading “Markets Closed for MLK Holiday, Futures Down Though, or Not.”
The Santa Clause Rally came 2 weeks late (always BTFD!) According to MarketWatch, small-cap stocks, as gauged by the Russell 2000 index RUT, +1.04% , are off to their best start to any year in the past 32 years, boasting a gain of 8.8% (WOW) over the past 12 trading sessions, according to Dow Jones Market Data. That’s outpacing the large-cap S&P 500 SPX, +1.32% the U.S. stock-market benchmark, which is up 5.2% over the same stretch — a performance, however, that likewise is the strongest 12-day start to a calendar year in 32 years. You can think Central Banks and Powell being Trumps right hand man for that.
Is it a reason to cheer? Perhaps it would be if not for the fact that the gains are the strongest since 1987, when the Russell popped 11.87% over the first 12 trading days and the S&P rallied 11.22%. 1987 is a year that lives in infamy on Wall Street.
On Oct. 19, 1987, the Dow sank 22.6% in a single session, marking its steepest percentage drop ever. That is not at all to suggest that similar action will play out this time around but you can never be to sure.
However, a number of strategists have been warning that gains in small caps aren’t likely to be lasting. MarketWatch’s Chris Matthews writes that investors have been drawn to the relative bargains that small-cap stocks are trading at compared with their larger-cap brethren, but noted that analysts are advising caution in investing in the group (don’t listen).
Separately, MarketWatch’s Barbara Kollmeyer, citing Andrew Lapthorne, a quantitative analyst at Société Générale, warns that U.S. small caps will be in the center of the next storm for stocks because those companies tend to carry larger debt loads relative to their heftier peers and are sensitive to rising interest rates.
“U.S. small caps have been taking on a massive amount of leverage over the past few years,” particularly starting in 2013 during the [quantitative easing] years, wrote Lapthorne.
Although the Federal Reserve appears to be in pause mode, the central bank does want to eventually normalize interest-rate policy, which may add more friction for small-cap names.
Back in 2018, shares of those companies enjoyed a bounce because they were perceived as being more resilient than larger multinational companies amid trade disputes between the U.S. and its trade partners, namely China. However, after punching higher, that rally faded hard and fast as a resolution between Beijing and Washington failed to materialize.
Investors should hope that the same narrative, or an uglier one, doesn’t play out this year. If us at BTFDClub had to bet unless there is a recession buy all dips!
If your a U.S resident you are well aware of the current government shutdown. Continue reading “U.S. Federal Employee Memento”