We saw a big turnaround in the markets on Friday, May 7, in response to surprisingly poor job numbers.
That begs three questions:
- Has this year’s market action really been all about fears of inflation and an overheating economy?
- Given the uncertainty around federal infrastructure spending, are we going to see a reversion to growth stocks?
- And most important of all, is now a good time to buy the dip?
Ted and Clint answer these questions in today’s installment of Your Money Matters. You’ll also discover:
- The key factors that determine where you should be investing right now.
- The two macro variables in play.
- Two asset classes to watch to see if this tech rebound is sustainable.
- How money has been moving around the market and what it means for the technology trade.
- The one play to make to profit in this environment.
- And more.
Watch the Dollar Closely
The U.S. dollar is an important factor to watch right now. It will impact the resurgence in growth stocks because 57% of sales in the tech sector are offshore.
When the dollar is strengthening, those international sales are worth less in dollar terms, and vice versa. That means where the dollar goes, so goes the profitability of these companies.
And the seasonality — what typically happens throughout the year — shows an interesting pattern investors should watch.
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Publisher, The Bauman Letter