March 20, 2023
Banks failing is just the next domino to fall in this market.
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Nick Hodge here, the editor of Foundational Profits, and I'm excited to tell you that the March issue is now available.
The S&P has recently given up all its gains for the year amid Jerome Powell telling everyone what we already knew: that he's not going to stop hiking rates until something breaks in the economy.
And what do you know? Something started to break.
We've had our first bank failure since the Great Financial Crisis back in 2008.
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I give a bit of context to what's going on in the economy and the markets in this issue and why the bear market isn't over.
I've been saying for the past couple of months that the rise in stocks we saw from October to February wasn't the end of the bear market, the bottom wasn't in, and there was likely more pain ahead because of slowing economic growth and falling S&P earnings.
That's exactly what we've seen now with fourth-quarter earnings now complete. Earnings growth was negative.
And again, now you have existential or exogenous events going on, like the failure of banks that are catalyzing selling and turning into some significant down days on the market. I give a market snapshot as far as what's going on.
Then we take a look at how we're positioning in commodities, particularly critical elements or battery metals over the next couple of months.
I firmly expect there to be a recession, and that's already leading to softness in commodity prices. But on the backside of that recession, I expect it to be a very bullish environment for commodities once we do get back to economic growth.
So this issue takes a look at the copper market, the lithium market, and the rare earth's market, and the way that we're playing those with two specific recommendations that you can buy now.
This issue also spends a little bit of time looking at China. We started buying China in the February issue, and in this issue I get more in depth as to why. I give my rationale for getting more bullish on China, and not just that they're reopening from COVID, but some of their savings rates, and then the amount of travel, at least inside the country, that the Chinese are doing.
Then I look at the future of climate solutions, specifically ones that don't have to do with energy. I'm talking about the direct extraction of carbon dioxide from the atmosphere or the blocking of sunlight, which NOAA is now evaluating through funding and directives from Congress. So we get into the future of climate change solutions that have to do with not generating clean energy or using less energy, but actually geoengineering the environment to be cooler.
And then we wrap up with a look at bubbles and bobbleheads. There's a company that makes bobbleheads that is having to throw out over $30 million in inventory as sales collapsed because people aren't sitting at home with stimulus money burning a hole in their bank account any longer.
That stock has come down 60% from its highs, but it's certainly not isolated. If you take a look at Tesla, it too is down 60% from its highs.
And the market remains down sharply from its highs of late 2021 and early 2022. The Nasdaq is still down from its highs, the S&P is still down from its highs.
We take a look at how that's affected mom and pop, how it's affected people's IRAs, and how it's affected people who thought they had a solid nest egg but have seen that erode over the past year or so.
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Then we take a look at our performance, the companies we have in the portfolio now, and where I would be allocating my capital.
It's all in the March issue of Foundational Profits.
We also have our quarterly call-in this month. So if you become a member before the end of March, you have a chance to either participate in that quarterly call-in, or at the very least watch a video recording of it.
There’s plenty of actionable advice and research in the March issue of Foundational Profits. I urge you to come along for the ride, especially in these turbulent times where we've been able to beat the market year after year for the past several years.
If you're not yet a member, I encourage you to check out this issue by filling out this form.
It's a small investment of $199 to become a member for a full year. That gets you 12 monthly issues, access to all the premium reports and, of course, a peek at the exact allocations that I'm making in my market-beating portfolio.
So I hope you'll join us by filling out this form.