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The Unseen Importance in Investment Strategy

Daily Market Recaps (no fluff)

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Unlocking the Secrets to Trade Management

As we step into the market’s ebbs and flows, one must possess the wisdom to navigate tumultuous waters akin to a skilled captain steering through a storm. Eric Fry, our astute macro expert, enlightens us on the pivotal role of trade management in preserving profits and cushioning losses during market upheavals.

The Resurgence of Bitcoin: A Bull Market Rekindled?

While crypto investors held their breath in anticipation of a post-halving bull run earlier this year, they were met with a surprising twist of events as bitcoin took a nosedive. However, as the dust settles, the crypto market seems to be rekindling its flames, with bitcoin surging above $63,000 once again.

The Decisive Factor

Expert Luke Lango cautiously assesses the situation, awaiting clear signals before plunging back into the market. His keen eye on technical indicators reveals that bitcoin is on the verge of retaking critical moving averages, a definitive turning point for investors eyeing a potential breakthrough.

Seizing Opportunities in Uncertainty

Amidst the uncertainties in the market caused by various looming events, including a contentious presidential election and fears of recession, there lies a silver lining – an opportunity to emerge stronger financially than before. Eric Fry leads the way with strategic insights to equip investors with the tools needed to weather the storm.

The Bright Light Shining on Small Caps: Louis Navellier’s Strategic Moves

Diving into Small Caps

Delve into the financial world and you’ll find Louis Navellier, a titan of data-driven investment strategies. His recent calculations spotlight a specific area of the stock market that demands attention – small-cap stocks.

Navellier’s rationale is compelling. Small-cap companies, known for their innovation and profitability, often grapple with higher debt burdens compared to large caps. A cut in interest rates could significantly lighten this load, enabling these businesses to channel more resources into their core activities.

Despite sporadic performance in recent times, historical data echoes Navellier’s sentiments. Analysis spanning several decades illustrates that small caps tend to outshine mid and large-cap counterparts in the aftermath of rate reductions, offering a potential one-year return of nearly 27%.

Noteworthy’s the recent success story from Louis’ Breakthrough Stocks portfolio. Several small-cap gems clocked remarkable gains, including Idaho Strategic Resources (IDR), boosting confidence in the efficacy of diligent market scrutiny.’

Small-, mid-, and large-cap stock performance in the first 3, 6, and 12 months following the first rate cut (data beginning in 1954). Small caps are on the left. You'll see that they outperform across all three time-horizons. And note that one-year return of nearly 27%.

Source: Calamos Investments

China’s Dramatic Move

Shifting gears to a global panorama, China’s economic landscape has weathered turbulence over recent years, grappling with weakened growth, defaulting giants like Evergrande, and dwindling investor confidence exacerbated by regulatory crackdowns.

However, in a surprising twist, Beijing recently unveiled a robust stimulus package to prop up its flagging economy. This intervention, encompassing rate cuts and liquidity boosters, injected newfound vigor into Chinese markets, as reflected by the surge witnessed in the iShares China ETF symbolized by the ETF MCHI.

Chart showing the ETF MCHI, which is the iShares China ETF. The vertical spike over the last couple days is the reaction to this news of government support.

Source: StockCharts.com

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