This ARK Is Taking on Water
Hey There Income Hunter, The first bubble has burst … And it's Cathy Wood’s ARK Innovation ETF (ARKK). Check out the chart below showing the 1998-2003 (dot-com bubble period), when the Nasdaq-100 (NDX) price trended lower for two years. The chart includes the ARKK price trend which is down more than 50% […]
The Fed Meeting Next Week Will Be Fun (Profitable)
Hey There Income Hunter, Market action this week was Jerome Powell’s worst nightmare. The graph below illustrates that the only sector up on the week was oil, and higher energy prices are the last thing J-Pow wants right now. Well, I guess there is another sector that has been haunting him, too – precious metals. […]
Gold is Golden in Stage 4
Hey There Income Hunter, What a whipsaw trade yesterday. For me, it’s further proof that we’re in a bear market. This will go down as the week that investors began the massive shift from financial assets to hard assets. Look, you can’t wait until the Fed tells you they won’t hike as much as expected […]
Tech and Bonds Sharing the Pain
The 60/40 portfolio strategy (that’s 60% stocks, 40% bonds) is getting crushed. Onlookers are watching the iShares 25+ Treasury Bond ETF (Ticker: TLT) and SPDR Select Sector Technology Fund (Ticker: XLK) go down together. This shift in trading is important to recognize because tech and bonds have not moved in the same direction […]
Signals That Trigger Meltdown
Hey There Income Hunter, Flexibility is extremely important in trading. News moves fast and trends reverse for seemingly no reason at all. So you need to be able to shift strategies to go with the flow. This is especially true in 2022, as the Fed tightens into a slowing growth and […]
Foreign Flows Into US Set to Shift
Hey There Income Hunter, The greatest advancement in the 100-year cycle of the Federal Reserve has been the development of the financial markets. That development and ensuing accessibility to foreign capital, along with Fed and US government policies, have successfully pulled trillions of foreign capital into the US stock and bond markets. […]
Funhouse CPI
Hey There Income Hunter, If last week’s headline Consumer Price Index (CPI) of 7% – the highest since 1982 – was calculated as it was in the 1980s (the recipe has been tweaked over the years to tamp down percentages), it would have been worthy of inclusion in Ripley’s Believe It or Not! for inflation. […]
Time to Sell the Banks
Hey There Income Hunter, I’ve been waiting for the specific opportunity I’m going to reveal today, and now that it’s here I’m going to truly relish it. Here’s what I mean … Long-time Power Income readers can tell you that I hate bank stocks longer-term. It’s mostly because of how badly […]
Has the Bear Market Started?
Hey There Income Hunters, It certainly felt like the beginning of a bear market on Thursday. Something of an official switch from buy the dips to sell the rips. This week has seen the largest drawdown for the Nasdaq 100 Index since May, with big tech suffering the most. This is a battle for the […]
Is the Dollar Calling Powell’s Bluff?
Hey There Income Hunters, The Greenback is calling BS on J-Pow … Capital is flowing out of the US just when you would expect the opposite. That is a real warning sign. Let’s never forget the market is all about liquidity and when liquidity dries up it usually spells trouble for […]