When Craig called his insurance agent, he didn't know his home was about to burn down... But it's a good thing he trusted his gut.
Editor's note: Today at the Chaikin PowerFeed, we're sharing an updated version of a classic essay from Pete Carmasino...
Longtime readers might recognize this essay. It first appeared in the November 10, 2023 edition of the PowerFeed. But considering the top subsector in the Power Gauge right now, Pete's message is just as important today as it was then...
No One Can Afford to Lose Everything in a Fire
By Pete Carmasino, chief market strategist, Chaikin Analytics
When Craig called his insurance agent, he didn't know his home was about to burn down...
But it's a good thing he trusted his gut.
You see, Craig had just bought an electric vehicle ("EV"). And he needed to install a charger at his home.
Incidents of home fires from EV-charging mishaps have made headlines over the years. That was one of Craig's biggest fears with his new EV.
In reality, EVs are more likely to catch fire on the road after an accident damages the battery. Fortunately, it doesn't happen with a charger at home as often as Craig thought.
Still, the possibility weighed on Craig's mind. He and his wife, Cynthia, had just spent $45,000 for new siding. So he wanted to make sure his home-insurance policy was in order.
Craig isn't alone, of course.
A home is many Americans' largest asset. Plus, it holds just about everything they own.
The thought of a fire is scary. But the fear of "losing everything" is even worse...
Volatility's spiking... fear is rising... hedge funds are on a selling spree, and tech is crumbling. But is this the death of the bull market? Marc Chaikin has called almost every market twist and turn of the past few years, including the 2020 and 2022 crashes. Tomorrow at 8 p.m. Eastern time, he wants to explain what's happening – and the ONE move you must make to prepare. Learn more here.
The insurance agent told Craig that his house already had more insurance coverage than needed. And the agent offered to trim down Craig's policy to lower his required payments.
Fortunately, Craig declined. After all, he had called with safety and protection on his mind. That's what he wanted. And he stuck to it.
Think about that for a second...
Craig prioritized "peace of mind" over saving a few bucks each year.
Two days after that phone call, Craig's house burned down in the historic Marshall Fire. In terms of buildings destroyed, it was the most destructive fire in Colorado's history.
If Craig had reduced his insurance coverage, he would've gotten less money after losing everything.
Craig's story reminds us that nobody can afford to lose everything in a fire. So it's clear that property and casualty (P&C) insurers play a vital role in our daily lives...
Related to that, they're a critical part of our financial system. And no matter how things play out in the economy, that won't change. We'll keep paying them for peace of mind.
Now, P&C insurers aren't like banks or regular financial firms. But they're among the world's most successful, influential businesses. And it all comes back to one key feature...
P&C insurers have easy access to "almost" free money.
This money doesn't come from the government or banks, of course. It comes from America's top businesses, executives, and professionals. Construction companies, doctors, lawyers, financial institutions, and more will all keep paying P&C insurers for peace of mind.
Today, the Power Gauge is "very bullish" on this subsector. In fact, insurance holds the top spot out of 21 subsectors. It's easy to see why when you look at its Power Bar ratio...
The Power Gauge tracks the insurance subsector through the SPDR S&P Insurance Fund (KIE). And as you can see in the above graphic, something incredible is going on...
None of the 53 rated stocks in this exchange-traded fund hold a "bearish" or worse rating today. And our system is currently "bullish" or better on 24 of these stocks.
So if you aren't already paying attention to this subsector, I recommend you do so.
Good investing,
Pete Carmasino Editor's note: Tomorrow evening, you won't want to miss the message from Pete's colleague and Chaikin Analytics founder Marc Chaikin...
In short, Marc has an urgent update on the next market crash. He's also sharing a brand-new investing strategy that could more than double your entire portfolio... even if the market continues to swing wildly.
Tomorrow, at 8 p.m. Eastern time, Marc is going on camera to explain everything you need to know – and exactly what to do. Learn more and register to attend his free broadcast by clicking here.
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+0.08%
4
21
5
S&P 500
+0.24%
48
309
141
Nasdaq
+0.57%
10
70
20
Small Caps
-0.56%
224
1187
490
Bonds
-0.01%
Communication Services
+1.27%
2
14
3
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain Bearish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Consumer Discretionary
+6.42%
Communication
+4.2%
Information Technology
+2.92%
Financial
+2.86%
Energy
+2.07%
Industrials
+1.98%
Materials
-0.45%
Health Care
-1.07%
Consumer Staples
-1.34%
Real Estate
-1.43%
Utilities
-2.2%
* * * *
Industry Focus
Semiconductor Services
1
22
18
Over the past 6 months, the Semiconductor subsector (XSD) has underperformed the S&P 500 by -5.18%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #19 of 21 subsectors and has moved up 1 slot over the past week.
Indicative Stocks
WOLF
Wolfspeed, Inc.
ALAB
Astera Labs, Inc.
MCHP
Microchip Technology
* * * *
Top Movers
Gainers
IP
+6.49%
TSLA
+3.5%
FCX
+3.36%
CRWD
+3.3%
FOXA
+2.94%
Losers
UPS
-5.05%
MRK
-4.81%
REGN
-4.06%
VTRS
-3.76%
ABBV
-3.74%
* * * *
Earnings Report
Earnings Surprises
MKC McCormick & Company, Incorporated
Q1
$0.60
Missed by $-0.04
GME GameStop Corp.
Q4
$0.30
Beat by $0.22
WOR Worthington Enterprises, Inc.
Q3
$0.91
Beat by $0.21
* * * *
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