Your Best Way Play This New Market Climate
Dear Rundown Reader,
The world’s in turmoil.
No surprise there.
Markets are volatile.
But we’ve seen that before too.
With all that said, it’s clear the way to play the markets has changed.
For starters, experts can throw most fundamentals out the window.
Below we show you why, as well as one rule you can still bank on in this new market climate.
Your Rundown for Wednesday, May 30, 2018…
Market Fundamentals Have Changed — Here’s What To Do
Sell in May and go away isn’t advisable.
Buying the dips to ride the rips is falling out of favor on Wall Street.
Truly… “The times they are a-changin.”
Markets were in a major pull back to open the week.
According to CNNMoney, the Dow dropped a whopping 400 points on Tuesday.
Oil is also in a prolonged slump, again sitting under $70 a barrel pre-market this morning.
But that’s not all.
Tuesday, the White House announced a reintroduction of tariffs. The New York Times reporting, Trump will move forward with his plan to impose 25% tariffs on $50 billion in Chinese goods.
Plus, many foreign economies are also in flux.
We covered Turkey’s issues last week.
Now Italy’s in a political crisis. One that hints at a “Rome-exit” from the EU. This, of course, is threatening to upend markets here and abroad.
Russia, Spain and Argentina are also in the throes of their own crises. And the list could go on and on.
Yet despite all this doom and gloom, there’s actually a lot to be positive about.
We’ve had a stellar earnings season. And we’re still in the midst of the second longest bull run in history.
According to BlackRock executive Rick Rieder, “one might feel an overt pessimism toward today’s market opportunity… Not us; we perceive a half-full glass,” reports CNNMoney.
The problem is the rules on how to play things have changed. Many old rules no longer apply.
Thankfully one still does.
Our own income expert Mike Burnick notes, using a business cycle analysis is a great way to sift through all the noise in today’s markets.
And according to Mike, we’re in the transition from early stage expansion to late stage expansion in the current economic cycle.
Source: Fidelity Investments
Good news for all.
But how will you know when the economy downshifts into the late expansion phase to prepare for the next recession?
According to Mike, you should keep a watchful eye on technology: “When tech stocks begin to fall out of favor, that’s a big red flag.”
Also, if healthcare and consumer staples begin to rise, it’s strong evidence the economy and stock market are entering the late stage of this cycle.
And that’s advice you can take to the bank.
Now, turning to the markets this morning…
Editor’s note: This isn’t the only top-shelf advice Mike has to offer you.
His Infinite Income service is a treasure trove of actionable advice folks like you can use to easily grow your wealth and protect your assets on the worst market days.
All you have to do is click here to get started. It’s that simple!
Market Rundown for Wed., May 30
Yield on the 10-Year Treasury sits at 2.871% this morning, up 0.103.
S&P 500 futures are up 13.50 to 2,705.
Oil’s up $0.36 at $67.09.
Gold’s down $2.20 to $1,301.
Bitcoin goes for $7,506 this morning, according to CoinDesk.
We’ll talk again tomorrow.
For the Rundown,