Here’s the Truth About Tariffs, Inflation and Markets
If I hear the phrase, “tariffs are a tax” one more time, I’m going to puke! Listen, can tariffs create higher prices for consumers, sure. However, that isn’t defined as inflation. Inflation is the general rise in prices over time. For example, if we posted a CPI inflation of less than 2% over the next…
Are We Ready for a Squeeze? Let’s Find Out
I don't know about you, but I'm a tired bear. Sure, getting bearish at a good time usually works out great… but instinctually we want to be bullish, right? I wouldn't go that far for myself, but you do reach a point when you want to see some sort of rally. Give me a nice…
Something Wicked Is Coming - Here’s How to Get Ready
On February 18, 2025 I walked through a signal I got back on Valentine's Day… The signal indicated a 5% to 10% correction in the market. How did I arrive at that figure? It's simple. The selloff was of the severity you’d typically get following the signal given. Now, expecting a correction is one thing,…
How to Track a Capital Rotation Event in Three Charts
“Are we in a capital rotation?” I think I’ve been asked that question more in the past week than at any time in the past 20 years. Most investors just aren’t typically attuned to seismic shifts in sentiment, but maybe the retail investor community is finally catching on! The idea of a capital rotation event…
Two Sectors Stand Out in a Divided Market
One of my biggest themes heading into 2025 was that Magnificent Seven stocks would lag the market. Their heyday was marked by massive Fed and U.S. government stimulus, shutdowns and closures, and they generally benefited from conditions brought on by the COVID pandemic. The new administration seems to mark the end of that mindset as…
Change Is In the Air for Markets - Here’s What to Do About It
Spring is nearly upon us, and you start to see changes happening, like plants beginning to sprout, or a warmer day amidst the cold. Essentially, there are signs that something is changing out there in the world. The market’s not a bit different. The response to NVDA Corp (NVDA) earnings was just that type of…
Here’s How to Spot a Market Bottom
Last week I revealed present market conditions that suggest a 5% to 10% decline in the S&P 500 in the next 30 days. And during a daily session, I showed everyone a portfolio hedge for stock positions - and a VIX trade to capitalize on a VIX move above 20. Here we are, a week…
How to Prepare for What the S&P 500 Will Do Next
It looks like the good times are rolling. The S&P 500 is testing new highs, and it’s easy right now for traders to become enamored with the market and run out and buy stuff. The retail investing feeding frenzy is real, and it’s no coincidence that margin debt is one of the biggest drivers of…
Microsoft’s “Majorana” Breakthrough Is Moving Quantum Stocks
Microsoft Corp (MSFT) announced a breakthrough in quantum computing with its new Majorana 1 chip. As you might expect, this breakthrough is leading option traders to quantum stocks. This in turn begs the question: Is a breakout imminent? Well, here's the summary “upshot” of the discovery - from Microsoft’s own Copilot AI, no less… "Microsoft…
Unlocking Market Alpha: Use the "Magic Formula" for Superior Returns
As we enter another volatile year in the markets, investors face a crucial question: How do you outperform the S&P 500 in an inflation-driven environment? The days of simply buying the index and expecting reliable growth are over. Purchasing power is eroding, and broad-market investing has underperformed against assets like gold, which outpaced the S&P…