SPECIAL ALERT: Your Holiday 2nd Half Preview
A generation ago, Wall Street would shut down for the summer.
No, the New York Stock Exchange wouldn't technically close. But for all intents and purposes, the markets would settle into a predictable range and the heavy traders would spend their vacation days in the Hamptons.
Today, it couldn't be more different!
Traders can now log in from literally anywhere to get all of the research, trading access, and profit opportunities they can handle.
And this year in particular, our summer trading days are shaping up to be anything but lazy.
So this week, as we take a bit of a breather to celebrate America's independence, I wanted to give you a roadmap to the market's most important issues.
That way, when the fireworks are over, you'll be set to jump back into the market and take advantage of the exciting new opportunities that our dynamic market is handing us.
A Summer Full of Changes
The last year has taught investors a lot about flexibility.
If you want to find success in the markets, you have to be willing to change your perspective and adjust your investments on a dime.
That's because with every new presidential tweet, every new economic report, and every new earnings announcement, markets are shifting.
That's great news if you're reading The Daily Edge and keeping up with the shifts.
Because we've had opportunities to make money in any number of different areas. From the surge in technology stocks… to the recent breakout in gold… from retail stocks profiting from the growing wealth effect… to dividend plays that throw off reliable cash payments…
There are so many ways to make money in today's market. And in the second half, we're going to see even more opportunities to pop up.
Here are a few of the biggest areas of opportunity we'll be focusing on this summer.
Jobs Front and Center!
This Friday, as investors are dragging themselves back into the office after Thursday’s holiday, the Bureau of Labor Statistics will release its jobs report for the month of June.
As you know, we’ve been talking about the strong job market for quite some time here at The Daily Edge. A healthy job market has been a big part of why the economy continues to expand, the market continues to move higher, and Americans have much more financial confidence.
Last month, the job report was a bit softer than expected. Our economy still created tens of thousands of new jobs. But it wasn’t quite the blockbuster hit that investors were expecting.
This month, we’ll get a chance to see whether the soft(ish) job report from the month of May was a one-off thing or more of a concerning issue.
And depending on the report, there are different types of opportunities that we’ll be able to take advantage of.
If the job report turns out to be very strong (meaning a ton of new jobs were created with higher wages), we may see some pullback in the market. That’s because investors will worry that a strong job market will keep the Fed from cutting rates.
But at the same time, that strong job report would be great news for retailers who sell to Americans who have plentiful jobs and more money to spend.
On the other hand, a weak job report could be good news for several different types of growth stocks. That’s because any weakness in the economy will give the Fed an excuse to cut interest rates. And lower interest rates make it easier for growth companies to borrow cash to pursue new business opportunities.
So Friday’s job report — and the overall employment picture this summer — is certainly something we’ll be watching closely!
Welcome to Earnings Season!
It’s hard to believe it, but we’re already heading into yet another quarterly earnings season.
Similar to last quarter, investors have relatively low expectations for company earnings. The uncertainty surrounding the trade war has led to a lot of skepticism in the market.
I love it when expectations are low.
That’s because it's easier for companies to beat those expectations by reporting strong earnings. And despite the high level of skepticism, the U.S. economy continues to expand, which means companies are likely to report earnings that are above the low bar that investors have set.
Positive surprises should drive stock prices higher as strong earnings are announced.
So make sure you’re paying attention to The Daily Edge for previews on which stocks are most likely to pop from an earnings report.
Gold No Longer Left for Dead
For the last several years, an investment in gold or gold stocks has been “dead money.” That’s because gold prices have been stuck in a wide range. Gold has traded higher and lower, but basically hasn’t made any progress.
Until this summer!
Over the last four weeks, gold prices have moved sharply higher thanks to expectations of a Fed rate cut.
As investors anticipate a rate cut, the U.S. dollar has already started weakening (Because fewer people want to hold dollars when it looks like they won’t be able to earn decent levels of interest).
A lower dollar naturally pushes the price of gold higher. After all, it takes more “weak” dollars to buy an ounce of gold!
Hopefully you’ve taken advantage of this recent breakout in gold. We’ve been pounding the table on the opportunity for several weeks now.
Better yet, if you bought gold stocks instead of just ounces of gold, you saw your profits increase even more! Gold stocks have given investors several times more in profits than gold itself.
The last time the Fed cut rates, gold rallied to more than $2,000 per ounce. That’s well above today’s price near $1,400 per ounce.
In other words, there’s still a lot of room for gold to keep moving higher. And we’ll be covering more of the stocks and other investment strategies that you can use to take full advantage of this move.
To be sure, summer is a great time to get away from the desk, travel, relax with friends, and spend time with family.
But that doesn’t mean you can just check out when it comes to market opportunities.
This is shaping up to be a great period for investors. And I want to make sure you’re dialed in to the very best wealth-building opportunities the market has to offer.
Here’s to a prosperous second half of 2019!