Investors remain in the doledrums due to a slew of narrative headwinds, whether it's the Fed's 'higher for longer' policy on interest rates, pending concerns about a government shutdown, or a depressed banking system, with markets still in the doldrums. There is a chance that we can get a short-term pop just on a mechanical basis alone - a classic 'gamma squeeze' - but overall, the trend is down.
When customers are tapped out in a down market, there is a sector of stocks that tends to be hit hardest - companies that deal in discretionary goods and services. Consumers don't need these companies to provide staple items that they need, they're usually the first on the chopping block when people tighten their proverbial belts.
But it also opens up a window of opportunity for investors, especially when long-term trends are bullish, I've been saying for a while now. When consumer confidence surges again, a lot of these companies could take a nice ride, particularly if you managed to get them at a steep discount.
We have to play it real careful, because we're not in deep, deep correction territory just yet, and I just said, there's a chance of another short-term pop as market makers go through their usual dance of trying to push markets higher. There are certain speculative plays worth making right now, but what I really want you to keep an eye on are the key support levels that signal ideal buy-in points for some of these household names.
You'll notice I left something out while I was covering consumer discretionary stocks, and that was very much on purpose. I'm talking about AI, and I left it out for a very simple reason. We're on the verge of a moment where there's nothing 'Discretionary' about AI, and it will be embedded in pretty much every facet of our lives, just like the Internet during the 90s.
It's a no-brainer that every investor should have exposure to this industry, but the best profits won't always come from companies like Google or Microsoft. There is a little-known industry that could potentially grow at the same rate as AI adoption, and investors have a chance to see returns that could blow the doors off of the big names.
I've got a full briefing out now with some targets I think have the best potential. The blog, The Smart Way to Play Consumer Discretionary Stocks Now Now, appeared first on Total Wealth.
Here are some ways to earn 10% or better on your money every quarter, but it's possible to get even more out of the shares you own. A lot more: you can quickly beat inflation and collect regular income to spare yourself. There are no complicated trades to put on, no high-level options clearances necessary. You can do this with a couple of mouse clicks - passive income transformed. He started his own hedge fund in 1982 from his seat on the board of the Chicago Board of Options Exchange. When options on the S&P's 100 began trading on March 11, 1983, Shah worked in 'the pit' as a market maker. The effort he did laid the foundation for what would later become the VIX - now one of the most widely used indicators globally. After leaving Chicago, Shah moved to the futures and options division of Lloyd's TSB and formed Roosevelt & Cross Inc., an old-line New York boutique firm. He originates there and ran a packaged fixed-income trading desk, and established that company's 'listed' and OTC trading desks. In 1999, Shah founded a second hedge fund, which he ran until 2003. Shah's vast network of contacts includes the world's biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.