May 16, 2023
Hey everybody, Nick Hodge here, and I’m excited to tell you about the May issue of Foundational Profits.
There are still many reasons to be bearish and many reasons to be cautious as it relates to the broader markets.
This issue spends a bit of time going over those reasons.
It starts out with an analysis of the debt ceiling — why this year is different from most years, when there would typically be a de facto increase of that debt ceiling. This year, we could see an actual default. I’ll show you why.
I also talk about things like credit default swaps and how they cost more now and why the stock market could go down if Congress and the president let this debt ceiling issue linger too long.
And we talk about the earnings that we're continuing to see from the first quarter of 2023, and how the earnings growth is still negative for many of the S&P companies and certainly for the majority of the NASDAQ 100 companies.
We talk a little bit about the yield curve and why recession is still ahead.
But it's never all doom and gloom.
We talk about what to do about that. There's an extended section in this issue on why liquidity matters and how to provide that liquidity for yourself.
We also take a look at commodities, particularly copper and oil, what they're saying about the broader macroeconomy and the direction it's heading.
And then we have a nice section on gold, which has been performing beautifully of late and remains in a bull market. We talk about a recent recommendation I made in that space. That's up 10% since we bought it in April. And we rotate from one gold position that we're up 50% on since gold started going up last October into a new major miner.
That's all in this issue of Foundational Profits.
There's also a brand-new recommendation in the consumer staples space. That's a defensive sector traditionally, and it's one that's been actually going up of late when many sectors of the S&P are in negative territory. This is a recently trading company that owns some of the best known brands in the world. They have over 10 brands that generate $400 million of revenue a piece each year. And the stock just IPO’d. It's been the largest IPO since 2021. We start positioning in that consumer staples stock as a result of the analysis that you'll see in this May issue.
And then, as I always do, I go through the portfolio, relevant news, updates, callouts, and actions — things that are worthy of buying now and companies that have had recent news or quarterly earnings reports.
So it's a dense issue. It's over 3,000 words. There's plenty to act on as we head into summer, and I hope you'll check it out by becoming a member of Foundational Profits by filling out this form.
Check out our premium publications for more trading recommendations and exclusive coverage on the markets. View Publications
Publisher, Daily Profit Cycle