If you haven't seen the news already, a financial-industry titan just turned 30. That's right...
Turning 30 Won't Fix This Financial Titan
By Marc Chaikin, founder, Chaikin Analytics
If you haven't seen the news already, a financial-industry titan just turned 30.
That's right...
The SPDR S&P 500 Trust (SPY) is now 30 years old. These days, it's the world's largest exchange-traded fund ("ETF").
When SPY launched back in 1993, it changed the game...
Before that, tracking the broad market S&P 500 Index was tough for individual investors. Expecting folks to put together a representative basket of stocks that large just wasn't reasonable.
In that way, SPY "democratized" investing. But that doesn't mean it was all good...
In fact, these days, I think SPY's very existence might hinder many investors.
I'm not even talking about its high fee structure. We all know the ETF is expensive compared with many of its competitors.
The problem with SPY is deeper than that. And as I'll show you today, this problem was one of the driving forces behind the Power Gauge's creation after the 2008 financial crisis...
"I've stayed quiet for a while now, but when I saw these numbers, I knew I had to step forward... because the market is about to enter a completely NEW phase." Steve recently started preparing to go live with his most important warning since he called the Melt Up back in 2015. Click here for full details.
One year ago, one of our corporate affiliates predicted a market crash. People laughed at them. But beginning the day afterward, we saw the worst sell-off in half a century, and you could've doubled your money six times with their recommendations. See their NEWEST prediction in full - for 2023.
At one time or another, I'm sure some financial expert has told you to "just buy the S&P 500." It's one of the mainstream media's go-to pieces of investing wisdom, too.
But that doesn't mean it's good advice.
Think about it...
Jack Bogle, the founder of fund-management giant Vanguard, spent his life trumpeting the virtues of index investing. Despite that, the company proudly displays the annual and lifetime returns of its actively managed mutual funds on their respective product pages.
In fact, almost the entire concept of Wall Street is that folks can outperform the market. And it's a great competition. The world's best minds try to find an edge over each other.
Yet when it comes to individual investors, the message is very different. The industry tells individuals to just ride the tide in and out – and hope for the best.
Folks, they just want your money.
They want you to provide the liquidity that makes their fancy maneuvers possible. And the overall message is that you should be grateful for the outcome... whatever it is.
Regular readers know my wife experienced this horror firsthand in 2008. She waited as her financial adviser rode the market down to the near bottom. And even as the market crumbled, it appeared that his only plan was to keep her assets under his management.
Righting this wrong brought me out of retirement. And it's why I've dedicated more than a decade to sharing Wall Street's tools, like our Power Gauge system, with individual investors.
But ever present in the background is SPY. For 30 years now, it has called out to investors...
"Don't invest actively. Just ride the tide."
"Just buy the broad market, sit back, and let it all take care of itself."
It's a siren song. It has lured many investors. And that's why I created the Power Gauge...
My one-of-a-kind system isn't a crystal ball. It can't predict the future – no one can. But it can give individual investors like you a critical "edge" over the markets...
The Power Gauge uses the foundational approaches of Wall Street's greatest minds.
By doing that, it empowers people to make prudent decisions and actively manage their portfolios. Instead of relying on someone else, these folks can take control of their financial lives.
So the next time someone says to "just buy the S&P 500," remember this essay...
SPY just turned 30 this week. It revolutionized the financial industry. And it's here to stay.
But you don't need to give in to its siren song. Make your own investing decisions.
Good investing,
Marc Chaikin
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+0.59%
12
15
3
S&P 500
+1.09%
160
268
72
Nasdaq
+1.95%
36
49
16
Small Caps
+0.60%
559
1028
303
Bonds
-0.46%
Energy
+3.16%
10
13
0
— According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish.. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Communication
+6.64%
Discretionary
+6.57%
Information Technology
+6.42%
Financial
+4.17%
Energy
+3.93%
Industrials
+3.17%
Real Estate
+3.15%
Materials
+3.08%
Staples
+1.40%
Health Care
+0.40%
Utilities
+0.10%
* * * *
Industry Focus
Homebuilders Services
16
18
0
Over the past 6 months, the Homebuilders subsector (XHB) has outperformed the S&P 500 by +6.87%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #2 of 21 subsectors.
Top Stocks
MHO
M/I Homes, Inc.
CVCO
Cavco Industries, In
CCS
Century Communities,
* * * *
Top Movers
Gainers
TSLA
+10.97%
STX
+10.86%
STLD
+9.99%
URI
+9.94%
NUE
+8.39%
Losers
SHW
-8.92%
MKC
-5.80%
IBM
-4.48%
NOC
-4.28%
RJF
-4.00%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
CVX, HCA
CE
AXP, CHTR, GE, MCD, NVR, ROP
CL
No earnings reporting today.
Earnings Surprises
LUV Southwest Airlines Co.
Q4
$-0.38
Missed by $-0.27
INTC Intel Corporation
Q4
$0.10
Missed by $-0.10
WY Weyerhaeuser Company
Q4
$0.24
Beat by $0.06
ROK Rockwell Automation, Inc.
Q1
$2.46
Beat by $0.59
DOW Dow Inc.
Q4
$0.46
Missed by $-0.11
* * * *
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This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
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