We’re Keeping an Eye on Fed Policy and Want to Talk About a NASDAQ Company That Should Thrive in This Environment

We’re Keeping an Eye on Fed Policy and Want to Talk About a NASDAQ Company That Should Thrive in This Environment

We are overdue for a BIG WINNER and I think this next report will be just that!

We will have this report ready for everyone tomorrow 12-2-21 near market open.

Good day everyone,

The NASDAQ is looking strong as investors turn to value equities and move back into the bio sector. This is good news for our members. I believe the NASDAQ is filled with oversold companies at present.

Jerome Powell had his term as Fed Chaiman extended by President Biden. His new four-year term will follow the current one that is expiring next year.

The Fed has been buying agency mortgage-backed securities and U.S. Treasuries, at a rate of about $120 billion a month in a move to support the weakened covid economy. In a statement yesterday Mr. Powell said, “We now look at an economy that is very strong and inflationary pressures that are very high and that means it’s appropriate for us to discuss at our next meeting — which is in a couple weeks — whether it would be appropriate to wrap up our purchases a few months early,”

Ending, or tapering Fed support for these financial products will have the effect of slowing the economy and leaves the Fed with its one other tool, interest rates. While there has been no recent comment from Powell on interest rates, they remain at historically low, near zero levels. The Fed’s next policy-setting meeting is scheduled for December 14 and 15. I’m certain the markets will be anticipating that meeting.

The current economic climate doesn’t impact all companies the same. Those that are labor intensive are struggling with the shortage of workers and those that are marketing to consumers are struggling with raising prices while all businesses are looking at higher costs.

Our next report is going to examine a company that is neither labor nor inventory intensive. It’s a value/growth NASDAQ company with fantastic potential that could thrive in the current economy. I like the fact that this company has a very tiny share structure and a good amount of insider ownership that gives management “skin in the game.” I was surprised by the very high level of institutional ownership.

I believe, and you may as well, that this company is undervalued and looks oversold. You will probably agree with the analysts that say “buy” these shares and indicate a high double-digit upside in their consensus price target.

Stay tuned and stay informed. We will issue this report tomorrow, December 2, 2021, at or around market open.

The Traders News Group