{"id":19453,"date":"2022-02-25T07:30:34","date_gmt":"2022-02-25T12:30:34","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19453"},"modified":"2022-02-25T07:30:34","modified_gmt":"2022-02-25T12:30:34","slug":"hope-amid-the-chaos","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/hope-amid-the-chaos\/","title":{"rendered":"Hope Amid the Chaos"},"content":{"rendered":"

When things don’t go right, fault lines in a system become glaring.<\/p>\n

And the Russian invasion of Ukraine has exposed some very troubling fault lines in the global system.<\/p>\n

Some even call it the end of globalization as we know it…<\/p>\n

But that remains to be seen. Certainly, the inability of the West to contain Vladimir Putin will send a strong green light to China’s territorial ambitions.<\/p>\n

And Putin chose a very opportunistic time to start checking off his bucket list of annexing Ukraine…<\/p>\n

Inflation is already putting a wet blanket on global growth, which renders the West’s sanctions basically useless.<\/p>\n

You see, unless the West sanctions Russia’s oil and gas industry… Putin just doesn’t care<\/em>. He knew the West wouldn’t target Russia’s oil.<\/p>\n

Probably because he knew that we put ourselves in this inflation hole via a needlessly over-accommodative Federal Reserve.<\/p>\n

Meaning with oil at over $100, we can’t sanction him where it hurts. If we did, 7.5% inflation could turn into 27.5% quickly.<\/p>\n

He’s been waiting and planning for years.<\/p>\n

For instance, did you know Russia’s U.S. bond holdings were already near zero leading up to this invasion… and were replaced by gold?<\/p>\n

That’s not by accident.<\/p>\n

Putin, along with other global players, play the long game… While Americans are simply focused on two-year election cycles… a fault line in our system<\/em>.<\/p>\n

But when it comes to the economy and the bottom line… all this geopolitical crisis has really done is accelerate the trends we have been predicting would unfold.<\/p>\n

We called the commodities trade last February<\/a>.<\/p>\n

The Bloomberg Commodity Index is up 35% since then… along with thriving companies like Archer-Daniels-Midland (ADM), Freeport-McMoRan Inc (FCX), and FMC Corp (FMC).<\/p>\n

We warned how the Fed is behind the curve on inflation and would have to crash the stock market by pivoting hawkish.<\/p>\n

And we warned to stay far from Hype Lifecycle<\/a> stocks like Virgin Galactic (SPCE)<\/a> and Tesla (TSLA) at $1,200 a share. The Tesla episode was one for the ages… Elon Musk himself was selling 10% of his stake while hype chasers kept buying. I guess they thought they knew something he didn’t.<\/p>\n

But when trends go into overdrive, some pockets of the market get bulldozed along with everything else… setting up big opportunities.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Growth with Substance<\/h2>\n

Last week<\/a>, I wrote about a portfolio of stocks I’m currently tracking closely.<\/p>\n

Individually, these stocks have little in common, except for one thing…<\/p>\n

They have growth<\/em> with substance<\/em>.<\/p>\n

It’s easy to identify them…<\/p>\n

These are companies that have spent years operating at a loss and are now poised to start generating profits.<\/p>\n

And in a fear-filled market, profits are all that matter. Not hype, not some narrative-driven theme – just profits.<\/p>\n

It’s the common denominator of the market.<\/p>\n

And recent earnings reports continue to explain the strong price reactions, confirming why they’re outperforming in a down market.<\/p>\n

Live Nation Entertainment (LYV) is a prime example.<\/p>\n

Take a look at the chart below…<\/p>\n

\"Chart\"<\/div>\n

After years of operating in the red – and even withstanding all the COVID restrictions over the past two years – its stock has held up.<\/p>\n

And this year, it has held up in a brutal <\/em>market.<\/p>\n

It’s not just outperforming the market… it’s doing it in style – rising while everything out there seems to be underwater.<\/p>\n

On top of beating earnings estimates, its net income is projected to swing positive this year and grow at 86% next year alone.<\/p>\n

That’s growth with<\/em> substance.<\/p>\n

And companies like Live Nation will continue to outperform the market by a long shot. I could only imagine how much these stocks can rise if the market finds its footing.<\/p>\n

Regards,<\/p>\n

Eric Shamilov
Analyst, Market Minute<\/em><\/p>\n

<\/p>\n

Reader Mailbag<\/h2>\n

In today’s mailbag, Jeff Clark<\/em> Alliance member Krystof comments on Jeff’s recent essay on options trading<\/a>…<\/p>\n

\n

Hello, Jeff.
\nThanks for the good article on painting a conservative approach to options trading. It\u2019s a pleasure to be a lifetime subscriber and learn more and more while trading.<\/p>\n

– Krystof S.<\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Is it the end of globalization as we know it?…<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[13],"newsletter-type":[],"ticker":[],"class_list":["post-19453","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-eric-shamilov"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19453"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19453\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19453"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19453"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19453"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19453"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}