 | Why We Want "Good, but Not Too Good" by: Charles Sizemore | Chief Editor, The Banyan Edge
January 07, 2023 Banyan Nation,
We got some “good, but not too good” in the jobs data on Friday.
The average gain in hourly wages was 0.3% in December, which was the smallest rise in nearly a year. This suggests that maybe … just maybe … we could see an ideal scenario in which we get slower growth but not a full-blown recession. This might give the Fed a little breathing room to slow down its rate hikes … or even reverse them, as Ian King thinks this could happen later this year.
We’ll see. A single data point doesn’t make a trend … and we’re just wrapping up the first week of the year. And a lot of the data rolling in over the past week points to a continuation of 2022’s conditions: Stubborn inflation continuing to push the Fed into raising rates more aggressively … which in turn absolutely hammers most of the large-cap growth names of the past several years.
And speaking of former growth darlings, perhaps no other company best epitomizes the boom of the pandemic era than Tesla (TSLA). TSLA got smacked down to start the year, down over 16% at the low of the week.
But here’s what I want to know…
What do you think about Tesla? After losing three quarters of its value, is Elon Musk’s baby poised to lead again? Or is the slide in its shares just starting?
We’re covering this in Monday’s Banyan Edge Podcast, and we want to know where your head’s at with the embattled king of electric vehicle makers.
Click here to answer this 10-second poll to let us know … and see what your fellow readers think. |  | | It’s tempting to want to bargain hunt in the tech sector, but Mike says certain tech stocks can still fall 90%.
Instead, you want to use a special type of trade that can make money while stocks are falling.
Doing this, with Mike’s unique system for uncovering these profits, would have exceptional gains of 596%, 379% and 213% according to a back test on some of the worst-performing stocks in 2022.
But the situation is heating up, and the profits that lie in wait for investors in 2023 could be even better if they know the right steps to take.
Click here to sign up for Mike’s free talk on “The Silicon Shakeout.” | Of course, at Banyan Hill, we’re not the types to sit around waiting for headlines on inflation or Fed moves. We like to get in front of the trends.
And the team has hit the ground running this month. Mike Carr sees an incredible opportunity to profit from a “silicon shakeout” in the tech sector, and you’ll be hearing more about that in the coming week.
We’ll wrap up this year with some highlights from the past week: - “2023 Predictions: A Faster, More Severe Fed Pivot” by Ian King. We’ll likely have a recession in 2023. But as Ian points out, it will be the most anticipated recession in history. And we’re already seeing evidence in the form of tech layoffs, inventory build-up and lower consumer spending.
But all of this also likely means that the Fed will pivot… and a lot sooner than most investors think. A return to lower interest rates will set the stage for the next bull market. But you don’t want to get in too soon.
- “One Microcap Stock to Buy Before Market Close,” by Charles Mizrahi. Interest rate hikes and a global slowdown threaten to make 2023 a rough year for a lot of large-cap growth stocks. But there’s one class of stocks that leads the field coming out of recessions: microcaps!
Smaller companies tend to be nimbler and are often led by innovative founders that often have their fortunes as well as their reputations tied to the companies they lead. Microcaps have led following the last 11 recessions over the past 70 years, and this one should be no different.
- “Tech Stocks Will Fall in the 2023 Silicon Shakeout,” by Michael Carr. 2022 was a rough year in tech shares. But as Mike Carr points out, it was a walk in the park compared to the last major tech shakeout between 2000 and 2002.
That bear market lasted nearly three years, and the greatest decline happened in 2002, after two previous years of bear market conditions. But while that will be misery for most investors, Mike will show you how to profit from it and turn the great silicon shakeout of 2023 into a once-in-a-lifetime trading opportunity.
- “Tesla’s Reckoning: A Preview to the Main Event,” by Adam O'Dell. It’s been a brutal 14 months for electric vehicle maker Tesla. After peaking in October of 2021, the shares have lost about three quarters of their value.
Based on his studies of past shakeouts, Adam believes the drop in Tesla’s stock is just beginning … and before it’s over, Tesla will be trading at prepandemic levels. Sharing Mike Carr’s sentiment, he also believes a lot more pain is in store for Big Tech.
By the way, speaking of Mike Carr’s Silicon Shakeout, I will be chatting with “the professor” himself on Monday’s podcast. He’ll be giving us a sneak preview of his special event scheduled for Thursday.
This is one you really shouldn’t miss. Mike already made a killing in 2022 betting against some of the biggest names in tech, and he’ll show you how to keep those profits coming this year.
Mike isn’t a cowboy that takes a crazy amount of risk. He’s a disciplined, stone-cold-killer trader, and he’s going to explain how you can follow his strategies to have a fantastic 2023 even if the market continues to sputter.
I’ll be watching the event, and I hope you’ll join me.
Until then,
Charles Sizemore
Chief Editor, The Banyan Edge
P.S. Are you enjoying The Banyan Edge?
We’d love to get your take on our research, and we love answering questions on the weekly Banyan Edge Podcast.
So, if you have any questions, insights or just want to leave us a note, please send an email to BanyanEdge@BanyanHill.com. |  | | Mike says a new shakeout is coming to Silicon Valley, one that will rival the historic dot-com crash 20 years ago.
But for investors who see what’s coming, it could be the profit opportunity of the decade.
Sign up here for Mike’s free event. |
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