What to Invest in as Stock Market Tide Changes
Watch
There’s a big reversal in momentum happening across U.S. equities and especially the NASDAQ (INDEXNASDAQ:IXIC).
We know markets have posted an unprecedented recovery in the last couple of months. But how long could that trend continue given the overbought reality, the current coronavirus pandemic data and geopolitical tensions?
There is a massive divergence in “smart money” and Robinhood investing. Institutions, hedge funds and central banks investment in equities is at a nine-year low despite the almost V-shaped recovery in markets. This separation between retail and institutional investing, historically, has been a massive indicator that the tides are shifting.
Another sign this reversal is starting to take place is the sell-off in both Microsoft Corporation (NASDAQ:MSFT) and Tesla Inc (NASDAQ:TSLA) despite their strong earnings reports.
Expectations for some stocks are very high – especially the technology names. So after this round of earnings, we might start to get a better understanding of true value.
Watch the full interview to see the momentum trades you should be paying attention to as markets rollover.
Top Stocks to Get in and Out of
We are starting to see some bubbles being burst in the top stocks traded on the Robinhood platform since the Coronavirus took hold. …So long Nikola Corporation (NASDAQ:NKLA)…down to pre-IPO levels in under 2 months. [...]
How to Get Away from Stocks Missing Earnings Estimates
Have you heard of the “Great Rotation”? It’s a fundamental change in investor attitude as traders shift away from equity funds to buying bond funds. Well now, we might be seeing a “Great Mini-rotation” [...]
Top 3 ETF’s to Have Your Cake and Eat it Too
There’s been a reversal of fortunes in the stock market in terms of what’s attracting investors attention right now. It’s the first time since February that the non “stay-at-home” stocks have been leading the way. [...]
Are Bank Earnings a Warning Sign of the Next “Big Short”?
Earnings season began this week with the largest banks reporting first. While revenue and earnings per share for the majority beat market expectations and consensus (as seen from graphic below), digging a little deeper we can see these results reflect strong growth in investment-banking fees and trading revenues. [...]
Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.
Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.
Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.