We’ve seen this play before. European debt issues
drive the stock market lower. Then, the inevitable bailout promises from
the EU sparks a big rally for the stock market.
As usual, underpinning the action in the stock is
currency valuations. Debt issues drive the euro lower, and the dollar
higher. And we know that stock prices, and commodity prices, sell off
when the dollar rallies.
So now that Europe is poised to send
Ireland a lifeline, can
we conclude that all is right in the world again?
Of course, that depends on what your definition of
If you feel the Fed’s actions to jumpstart the
economy are appropriate, then yes, we are probably returning to the
familiar falling-dollar-rising-stock price dynamic.
If, on the other hand, you believe runaway inflation
is right around the corner and that the Fed is recklessly expanding its
mandate to maintain price stability, then you probably have misgivings
about the current investment environment.
Unfortunately, that probably also means you’ve
missed the profits from the money-making environment the Fed is
attempting to foster.
The old expression “don’t look a gift horse in the mouth” might be
appropriate here. I believe it’s never wise to let personal bias get in
the way of profitable investing. I prefer to get in tune with the
market’s action, and take the profit opportunities that are
For instance, on a personal level, don’t see why
gold should be a more attractive store of value than stock in a great
small oil exploration company, or a fertilizer stock that is addressing
the global need for food.
Still, the story (and the profits) for gold are
undeniable, and so I have exposure to gold in my $100K
Portfolio. And for the record, my readers and I
also have 24% gains from that small oil E&P I mentioned.
The point is, an investor must buy what’s working.
I’ve found that personal bias is usually more of a hindrance than
anything else. Some investors missed some phenomenal profit opportunities
during the Internet bubble. Some investors bet against oil on its run to
$147 a barrel. Plenty of investors were too skeptical of the rally off
the March 2009 lows to participate.
And I’m sure there are investors out there betting
against gold and stock prices right now.
If you’re looking for some excellent investment ideas, one of my
Investment Research colleagues is generating
some great selections every week. Jason
Cimpl, the trading strategist at
TradeMaster Daily Stock
Alerts has been taking stock submissions
from his subscribers to add to the stocks he turns up with his unrivaled
Here’s what Jason said in his pre-market subscriber
I received well over one hundred tickers from
you this week and we may add a few of your selections to the portfolio in
the next market rebound. There were tons of great stocks. Additionally,
it was great to read the corresponding commentary attached with each
ticker. I noticed that a few of you have really gotten into technical
Remember, reading the charts is a great way to
spot near-term setups, but at the end of the day everything comes back to
fundamentals over the longer term. Due to current unusual times I will
review your stocks as part of our weekly video. If you have not had a
chance to send you tickers in, there is still some time.
If you don’t know, Jason records a trading video for
TradeMaster Daily Stock Alerts subscribers every
weekend. His videos include detailed chart analysis and commentary on
several profitable investment opportunities every week.
And judging from the amount of submissions he’s
receiving, this weekend’s video should be a blockbuster. Over the last
month, Jason has led his subscribers to 40%, 21%, 15% and 14% gains. And
don’t forget, the 30-day trial period to
TradeMaster Daily Stock Alerts means you can
sample his work without making a long-term commitment.
Please feel free to write me with your questions and comments. I’ll probably
print them in Daily Profit: [email protected]