The Broader Market’s are in Correction Territory

 

We have a new Biotech company report that will be available tomorrow 01-24-22 at market open.

 

Happy Sunday Everyone,

 

The equities market is volatile right now to say the least. There is a correction in process and investors are wondering if a market crash is on the horizon. The market has been riding an escalator upward since the last recession in 2008 when a crash did occur, quadrupling in value over the last 13 years. Look at the history of the stock market indices and you see that upward trends always get corrected.

 

Also going back to the 2008 recession, money has been historically cheap since then and the Fed discount rate has remained at record low’s. The announced intent to raise the discount rate to combat inflation has had the effect of creating a “risk averse” mentality in investors. The Cryptocurrency market is a clear example where the sell-off has cut values nearly in half. We will be focused on monetary and tax policies in the near to mid-term. Note* There is a FED meeting on monetary policy on Wednesday this week.

 

I think there will be a recovery in equities at some point fairly soon. First, we need to see the FED lay out a clear plan to combat our out of control inflation here in the USA. The good news, bank accounts are still fat and there’s pent-up demand, caused by the pandemic and its consequent labor and supply shortages that could ease this quarter.

 

I told you last week that the current consolidation in the equities markets is exposing oversold and undervalued companies, particularly in the small-cap arena. I’ve been watching dozens of companies looking for value and signs of strength during the NASDAQ correction and I’ve found that one of my favorites is looking primed for potential gains.

 

Some companies’ shares have been oversold with their values dropping to the point where investors are looking and thinking “I can’t resist these shares at this price.” Assess your risk level and be picky as this correction does not appear to be over quite yet.

 

Stay tuned and stay informed. New report to be released Monday, January 24, 2022, at or near market open.

 

The Traders News Group