I’m betting on America.
With the coronavirus pandemic, we’re facing unprecedented challenges and dark times. But we’ve weathered worse… and we’ll be on our feet again.
Again, this situation will get worse before it gets better. But we’ll get through this together. And in the end, it will get better.
Over the weekend, the Fed announced that it’s cutting interest rates to zero and injecting $700 billion into the economy.
And on Sunday night, President Trump indicated the stimulus plan would pull the economy out of its coronavirus-induced nosedive…
That’s a big step, and I’m very happy they did it… I would think there are a lot of people on Wall Street that are very happy. I can tell you I’m very happy.
Now, generally, when the Federal Reserve cuts rates and injects liquidity into the economy, the market soars. But President’s Trump’s recent words fell on deaf ears.
Stocks, gold, and even bitcoin cratered to start the week. And today, we’re seeing even more red across the board. In fact, trading was halted earlier in the day – marking the fourth time it’s been halted this month.
You see, this outbreak has exposed the ongoing liquidity issue in the markets, and it’s causing the global economy to grind to a halt.
And today, I’ll tell you why I believe this stimulus package isn’t stimulating the markets right now – and what my system is saying about the huge wave of selling we’re seeing…
The Lifeblood of Our Economy
Longtime readers know I’m a numbers guy. I like to look at data. That’s my passion.
But the coronavirus pandemic isn’t like the housing crisis we saw in 2008… or the tech crash we saw in 2000.
Sure, those market crashes affected a lot of people. There were hundreds of thousands of home foreclosures across the country. Businesses went bankrupt. And millions lost their jobs.
But the coronavirus is more visceral: It’s about all jobs. It’s about life and death. And it’s changing the very way we live.
That’s why I believe the reaction to the president’s stimulus plan has been tepid at best. It’s not addressing the deep-seated fears of ordinary Americans.
Let me explain…
Imagine you’re a bodega owner in New York City.
Right now, you’d be thinking: “What happens if I close my shop for three months? I can’t pay my employees. I can’t pay my bills. And my insurance doesn’t cover an outbreak.”
And what about the single mother who works as a waitress and makes most of her money from tips? Or the travel agent who can’t book trips because everything is canceled? Or the real estate broker who suddenly finds no one is buying or selling?
The grocer, the restaurateur, the gym operator, the gas station owner, and on and on down the line… they’ll all suffer during this crisis.
And they could give two squats about zero interest rates and overnight lending in the credit markets.
What they want is for the government to reassure them they won’t go under.
Small- and medium-sized businesses are the lifeblood of our economy. If we close down the United States for the next three months, what happens to them?
Last year, a Federal Reserve survey found that 40% of American families would have difficulty covering a $400 emergency expense. So what happens if there are mass layoffs?
That’s the uncertainty we face. And the markets have no answer for it…
We’ll Weather This Storm
Look, we’re in uncharted territories. And no one can predict what will happen even three months from now.
But my “unbeatable” stock-picking system can tell us what’s going on in the markets.
I’ve used my experience from nearly two decades at prestigious Wall Street firms – regularly trading more than $1 billion worth of stock for major clients – to make sure it’s highly accurate, comprehensive, and effective.
It scans nearly 5,500 stocks every day, using algorithms to rank each one for strength. It also looks for the buying and selling movements of big-money investors in the broad market.
And right now, it’s signaling that this selling period isn’t over yet…
When my big-money index is at 80% (see the red line above) or more, it means buyers are in control and markets are overbought. And when it dips to 25% (the green line) or lower, sellers have taken the reins, leading the markets into oversold territory.
So based on my system’s data, we’re nearing oversold conditions. We still have a little more time before this selling pressure ends. But eventually, the markets will rebound…
And I’m looking to buy high-quality companies at a discount for when they do. Right now, though, we have more important things to worry about.
I’ve spoken to several people over the past few days. And every one of them is worried they won’t be employed after the dust settles.
If they feel this way, chances are that you do, too.
But again, America has weathered worse… and it’ll be on its feet again. (The alternative is something I cannot fathom, nor do I want to.)
In the meantime, I’m buying sound U.S. companies with little debt and proven businesses that can weather this storm.
I’m betting on America.
Patience and process!
Editor, Palm Beach Insider
P.S. As I mentioned, I’m betting on America – and stocks. And my “unbeatable” system scans nearly 5,500 of them every day to identify the best of the best. It can help you spot them, too – and ride them to profits as Wall Street’s buying pushes them higher.
I put together this special presentation so you can see how it all works – including how my system can find these superstar companies with the potential to grow 1,000–10,000% before anyone else.