Rabu, 01 April 2020

Markets Live: Our experts' take on today's market moves

With insight from Chris Johnson, Tom Gentile, D.R. Barton, Jr., and Shah Gilani...


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Money Morning eLetter
Markets Live: Making Sense of Today's Market

Dear Profit Alerts Member,

To help you navigate today's volatile markets with even more clarity, we started a brand-new service here at Money Morning. It's a live stream with four of our industry experts. And it's happening every day that the market is open. Here's a brief recap of what they covered yesterday, Tuesday, March 31...

Chris Johnson on how trade this market (9:00 am EST)

  • Chris' No. 1 takeaway: Look for the 50-day moving average to break through the S&P 500 before we know we're in a bull market again. The fact that the 50-day moving average is below the S&P tells him we're still in a bear market
    • Chris doesn't expect a "V-shaped" recovery. Instead, he expects more of a longer, drawn-out bottom in the market that's going to take some time to shake out before ultimately recovering as the economy takes time to come back online in a similar drawn-out fashion
Tom Gentile on how to be a contrarian (11:30am EST)

  • Tom's not buying this brief rally on stocks because they're mostly all trading on lower volume - meaning there's less conviction among buyers
  • Tom's 3 Moves to Make Now:
    1. Take less risk in your current strategies
    2. Look at what is going up in a down market
    3. Exploit volatility on both ends
  • Tom's thoughts on the Fed printing:
    • Tom thinks it's far from over... He thinks $2 trillion will turn into $4 trillion soon (and possibly more)
    • All this printing could cause inflation to run rampant
    • So where is the safest place to store your money, according to Tom?... Gold.
D.R. Barton, Jr. on two stocks that will have longevity after the COVID situation dies down (1:30pm EST)

  • As far as D.R.'s concerned, there are two narratives to pay attention to today:
    1. The stimulus money from the Fed
    2. And of course, a worldwide pandemic that we haven't seen since 1918
  • So, why hasn't the stimulus money taken the stock market higher?
    • Because COVID isn't solved yet - new cases keep popping up every day
      • The curve isn't flattened yet... But it will eventually
Shah Gilani on the most important thing right now (3:45pm EST)

  • Like D.R., the most important thing to Shah right now is: The Suppression of the Coronavirus Curve (especially in the U.S.)
    • Once this dies down, the economy can resume
    • But that's not happening right now so investors have reason to be worried still and that's why they're taking "chips off the table"
  • In the meantime, Shah is encouraging his Members to start buying businesses (if you haven't already)
    • But only buy into positions you want to hold LONG TERM
    • DON'T go all in just yet
    • Instead, put in about 10% of your money at a time
Catch us today - starting LIVE again at 9 a.m. with Chris Johnson, right here.

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