1 Rebound Catalyst: Watch Small Caps & Dow 100K
The market’s making a comeback!
One catalyst will spark the rebound: buyers over sellers.
That means a massive boost in your stocks and we can get to crushing the last half of 2021!
There are three things you should be watching right now:
- Small-cap mega trend stocks.
- Disruptification of the Dow, rocketing it to 100K.
- One rising fintech subsector.
To me, this is a major turnaround that could propel your America 2.0 stocks to new highs.
Check out today’s Market Talk for the full scoop about your watchlist to take advantage of the market’s shifting tides:
3 Things to Watch for in the Stock Market
Amber Lancaster: I am glad to say that Patrick Goodrich, our key investment analyst at Bold Profits, is joining us. He is here to share what market catalyst to look for that will turn America 2.0 stocks onward and upward.
Plus, he will update us on a recent milestone achieved by the Dow and America 2.0 disruptions set to propel it to 100,000. Lastly, I will preview a rising America 2.0 megatrend in the financial technology AKA fintech industry that’s set to grow 51% by 2024, reaching nearly $48 billion.
Paul’s Secret Portfolio trading service is already all over this trend with one fintech position he recommended last year that is up more than 300% as of yesterday’s close.
Patrick Goodrich: Thanks for having me on.
Amber: Patrick, I know you work closely with Paul on his Extreme Fortunes and IPO Speculator trading services and you have your hand on the pulse of the America 2.0 market. Based on your investment analysis with Paul, I know you are expecting a solid market turnaround.
Can you please share what catalyst will foster this onward and upward turnaround?
Patrick: The thing is, when it comes to Extreme Fortunes, a lot of these companies are small, micro caps. They are originated in the Russell 2000, which are the 2,000 smallest stocks. A lot of these companies are focused on our megatrends, they are disrupting the old world.
They are in renewable energies, precision medicine and fintech as you said. They are amazing. As of yesterday, you talked about the turnaround and the increase in demand over the supply and demand pressure that’s been going on for the last few months.
In Extreme Fortunes there are about 40 companies we look at. As of yesterday’s close, all but five were trading above their 10-day moving average. We use the 10-day moving average as a gauge to measure demand versus supply. What we are seeing is more buyer outweighing the sellers.
With that, we are seeing more and more buyers stepping in and the selling pressure coming to an end. We are seeing that as the major catalyst for the turnaround. We think that’s going to keep propelling our stocks higher in the months and years to come. That’s a good sign.
Amber: I like that sign. Buyers over sellers. That’s what we want to see here at Bold Profits. My next question is that I know you have your eagle eye vision on the Dow. It’s coming, we know it’s coming — the Dow 100,000 mark. From what I have been reading, I believe the Dow just recently touched a milestone.
Would you care to shed more light on that? Also, share how it works with our America 2.0 megatrends and how they will play a role in pushing the Dow even further to reach that 100,000 milestone.
Patrick: Last week the Dow reached above 35,000, which it’s never done before. As we like to say and I in particular like to say, the Dow will reach 100,000 by sometime in this decade. Right now the reason I am still bullish on that is not just because of the fact it hit that milestone, but the fact that most of these companies within the Dow are still America 1.0 stocks.
Things like Chevron, Goldman Sachs and Home Depot, which I wrote about in my latest Bold Profits Daily issue, are traditional banking, oil industry and the old way of building homes. They are traditionally trillion-dollar industries.
These small companies that are America 2.0 companies are in fintech, 3D printing and renewable energy are just small, billion-dollar companies. But they have massive potential to grow into trillion-dollar companies, which will be inputted in the Dow and help push the Dow to that 100,000 mark.
There’s still plenty of room for them to run. I am looking forward to that. I am glad the Dow hit a milestone but we have so much more potential disruptification within the Dow. That’s where I think the transfer from America 1.0 to America 2.0 is going to happen.
Amber: You said it so succinctly. The disruption of the Dow with our America 2.0 that Paul is all over. That’s something to look forward to and we are seeing it in real time, which is great. Patrick, thank you so much for joining us today and sharing your analysis on what you follow.
Personal Loan Fintech Lenders
There’s a rising fintech subsector, as indicated with an arrow on this graphic, that a recent study from the S&P Global Market Intelligence Report projects will rise significantly, surpassing 2019’s pre-pandemic levels.
The fintech subsector I am referring to is personal loan fintech lenders or digital lenders. Personal loan fintech lenders loan originations annually are projected to rise by 51% to $47.9 billion by 2024, just boosting its business. As this headline from the S&P states,
“U.S. digital lender origination is expected to rebound strongly after a painful 2020.”
In all, “S&P Global Market Intelligence expects U.S. digital lender volumes to jump more than 20% per year for the next few years as the companies that weathered the initial shock of COVID-19 begin competing again for market share.” This is a golden opportunity to get in on the fintech personal loan rebound.
I will go into more details on this opportunity and the best trade to capture this upcoming megatrend in my weekly Bold Profits Daily article, which will be posted this Wednesday, May 26, on our website BoldProfitsDaily.com. In the meantime, check out Paul’s Secret Portfolio trading service.
It already has some recommended fintech plays, some of which are up more than 300%. In all, this premium trading service has an annualized return of 39% since its inception in 2019. Since inception, its overall portfolio gain is 183%. Click HERE to learn more about Paul’s Secret Portfolio.
Finally, turning toward the U.S. economic calendar week ahead, there will be eight major economic releases. On Tuesday, April’s new homes sales and May’s consumer confidence will post at 10 am. On Thursday, April’s preliminary durable goods orders and GDP annualized quarter-over-quarter first quarter second reading will post at 8:30 am.
On Friday, April’s preliminary wholesale inventories, April’s personal spending and personal income, as well as May’s MNI Chicago and University of Michigan sentiment will post at 8:45 am and 10 am respectively. Of these releases, we will be watching new homes sales and durable goods orders.
Editor, Profits Unlimited