Computers changed my career forever... There's no question about that. After all, when I started on Wall Street in the late 1960s, we drew our charts by hand – that is, if my boss approved of them at all.
Here's How 'FedNow' Will Change Investing
By Marc Chaikin, founder, Chaikin Analytics
Computers changed my career forever...
There's no question about that. After all, when I started on Wall Street in the late 1960s, we drew our charts by hand – that is, if my boss approved of them at all.
Today, everything runs on code. From trading systems to children's toys, computers are everywhere.
But until now, one area lagged woefully behind. I'm sure you've experienced it...
Everyone has sent money by check or bank transfer. When you do that, it takes a few days to "clear."
That's just part of life in America.
In fact, the way people move money around in the U.S. hasn't changed in a meaningful way since the 1970s. We're still using the old "automated clearinghouse" system.
But... that's all about to change.
The Federal Reserve wants the movement of money to settle instantly. It doesn't want the hassle of dealing with days of cash transfers hanging in limbo within the system.
It's time for a new way. And the central bank just launched it yesterday.
So today, let's look at this topic from the investor's perspective...
For the first time ever, Marc Chaikin and Dr. David Eifrig have teamed up to discuss an urgent new market development. You'll find out whether three of America's most popular stocks are set to soar – or plummet – in the next 30 days. You may own or plan to buy at least one of them... and each has the potential to make or save you thousands. Don't miss this: Click here for three free stock predictions
Beginning this month, the U.S. government will take the first step toward creating its own cryptocurrency... a "Federal bitcoin." The U.S. Treasury and 120 banks have already signed up for it. If you get positioned before the rollout this month, you could make 3,050%. Click here to learn more.
Since you're reading this essay, you're probably a financial-news junkie like me. So I'm guessing you've seen some headlines about the new "FedNow" system.
The system has been in the works for the past four years. And just yesterday, the Fed went live with it.
The idea behind it really is as straightforward as it sounds...
The Fed wants people to be able to move their money and instantly settle transactions up to $500,000. As I said, it typically takes several days for funds to "clear" after a transfer.
That's not how most of the developed world operates. The U.S. is an outlier.
With the new system, transfers should be able to settle every day of the week (including Sundays). And they'll be able to settle 24 hours a day, even when banks are closed.
Now, on its own, this new system doesn't sound like an investment story. But it is.
Here's how...
You see, so-called "retail" investor participation has soared over the past decade. More mom-and-pop investors are getting into the financial markets than ever before.
At the start of this year, retail trading hit yet another all-time high. At that peak, it accounted for roughly 23% of all the trading volume in the market.
Folks, it's hard to understate the significance of this stat...
After all, these days, Wall Street features computers that trade faster than humans can think. Despite that, retail investors still account for nearly a quarter of the market.
Now, the Fed is delivering a way to move money around within seconds.
So in the coming months, it will be even easier for these retail investors to move money to their brokerage accounts. And it will be even easier to move money out of them, too.
Put simply, the easier money is to move around, the easier it is for folks to take part in the markets. And at the same time, they can quickly pull their money out when they're feeling squeezed.
So what can we expect from this change?
On an individual level, you might not even notice it at first. But as the new system rolls out, we'll see people doing more of what they do best...
They'll keep optimizing their money management. They'll move funds around based on what they want, how they feel, and where they think they'll get the best bang for their buck.
Because of this change, I expect that the number of retail investors taking part in the market will only keep growing.
So buckle up... the retail-investor party is just getting started.
Good investing,
Marc Chaikin
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+0.49%
12
16
2
S&P 500
-0.66%
189
251
59
Nasdaq
-2.31%
60
34
5
Small Caps
-0.85%
662
966
314
Bonds
-1.21%
Utilities
+1.83%
1
18
11
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Health Care
+3.95%
Financial
+2.58%
Staples
+1.81%
Industrials
+1.05%
Utilities
+0.51%
Materials
-0.01%
Information Technology
-0.02%
Energy
-0.10%
Real Estate
-0.93%
Discretionary
-2.02%
Communication
-2.32%
* * * *
Industry Focus
Bank Services
12
57
20
Over the past 6 months, the Bank subsector (KBE) has underperformed the S&P 500 by -27.65%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #17 of 21 subsectors and has moved up 1 slot over the past week.
Indicative Stocks
PB
Prosperity Bancshare
IBTX
Independent Bank Gro
WSBC
WesBanco, Inc.
* * * *
Top Movers
Gainers
ZION
+9.98%
JNJ
+6.07%
ALL
+5.85%
PGR
+4.86%
ABT
+4.20%
Losers
DFS
-15.92%
TSLA
-9.74%
EFX
-8.89%
NFLX
-8.41%
MPWR
-7.91%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
AXP, NVR
RHI
BIIB, HBAN, IPG, IQV, RF, ROP, SLB
CMA
NEE, T
FE
No earnings reporting today.
Earnings Surprises
TRV The Travelers Companies, Inc.
Q2
$0.06
Missed by $-2.06
DHI D.R. Horton, Inc.
Q3
$3.90
Beat by $1.07
NEM Newmont Corporation
Q2
$0.33
Missed by $-0.12
TFC Truist Financial Corporation
Q2
$0.92
Missed by $-0.11
COF Capital One Financial Corporation
Q2
$3.52
Beat by $0.28
* * * *
You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here.
You're receiving this e-mail at diansastroxz.forex@blogger.com.
For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice.
Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors.
Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.
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.
Post a Comment
Post a Comment