Great Stuff Unfiltered: The Fed, Apple, Inovio and Plug Power
Great Stuff Fed Up and Unfiltered
Welcome to Reader Feedback day!
The Great Stuff team is down a member today, namely my editor and copilot. Don’t worry, it’s not the virus. We’ll be back at full strength tomorrow.
However, for today and today only, I’m coming at you unfiltered! (Insert evil laughter here.)
So, let’s get on with the show, shall we?
(By the way, if you’ve got a question for Mr. Great Stuff, or if you’d like to be featured in Great Stuff’s weekly Reader Feedback, just drop us a line at GreatStuffToday@BanyanHill.com.)
Breaking the Habit
Wall Street’s got a bad habit… When does this druggie hit rock bottom?? Stimulus needle is losing its potency.
— Huston S.
Huston, thank you for your question and for giving me such a convenient lead-in. After yesterday’s Federal Reserve statement, I was going to talk about this anyway.
But you’re right, Huston, we have a problem. And that problem became readily apparent after yesterday’s Fed announcement on monetary policy. The gist of Fed Chairman Jerome Powell’s statement is that the Fed will hold its course … for years if need be.
Powell plans on keeping the Fed’s key interest rate at zero until inflation exceeds 2% “for some time.” The Fed will also continue to buy Treasurys and mortgage-backed securities as needed.
Now, this is all fine and dandy … but Wall Street has gotten used to steady increases in stimulus.
And with the U.S. economic recovery slowing, many Fed watchers were expecting Powell to do something more.
The thing is, there isn’t much more the Fed can do. It can prop up the market. It can ensure liquidity and easy money.
It can even help keep “too big to fail” companies from failing to some degree. But it can’t create demand. And demand is what the U.S. economy needs right now.
The only entity that can help create demand is the U.S. government (outside of COVID-19 just evaporating, that is). But that stimulus is gridlocked in partisan politics at least through the November election. The only thing the Fed can do is stomp its feet and cry for more stimulus from Congress. Powell had the opportunity yesterday and rightly decided against it.
It’s not the Fed’s place to tell Congress to do its job. But I digress…
Huston, we’re already seeing the effects of stimulus withdrawal in the market. Since hitting highs on September 2, the Dow is off about 5.7%, the S&P 500 is down 6.4% and the Nasdaq is teetering on correction territory with a 9.7% loss.
As for when “this druggie will hit rock bottom,” that’s still anybody’s guess. But if you ask me (and you did), I believe we’re nearing a March-style correction as Wall Street finally realizes that the economy and corporate profits aren’t going to bounce back as quickly as they expected.
The November election may well be the catalyst for that realization.
Speaking of the November Elections:
Marijuana legalization is on the ballot in 39 states this year … 39! That means that there are 39 potentially new opportunities for some form of legal marijuana in 2021.
Even deep-red states like Mississippi and South Dakota are now voting on whether or not to legalize. And ONE stock is positioned to benefit from it in a way that no other stock can.
Apple Bobbing? Apple Bobbing!
Oh Great Stuff, what’s up with Apple? Has been going down steadily since the stock split yet is still the same old Apple.
New products, new events, even treading lightly into the EV sector. I finally took a bite of the Apple after the split but leaving a bad taste in my mouth recently.
Great to hear from you again, Dick! I’d ask how it’s hanging, but it doesn’t sound too good. You say you got in on Apple Inc. (Nasdaq: AAPL) after the split? That’s some bad juju man.
While the AAPL split could have been a massive opportunity for retail investors to buy in at lower prices, it has turned into a profit-taking bonanza. The stock is off nearly 20% since September 1. And yesterday’s big product reveal didn’t help at all.
But I’m sure I don’t have to tell you that.
Apple’s side projects — the Apple Watch and the iPad — are all well and good, but investors (and consumers) want a new 5G iPhone. They’ll have to wait a while longer for that sweet, sweet iPhone upgrade cycle cash to start rolling in. When it does, I expect AAPL shares to recover a bit. There may even be a bit of a Santa Claus rally bump heading into the holiday shopping season.
So, Dick, all is not lost. AAPL will probably head higher … eventually. Just don’t expect that “one more thing” level of excitement from the company any time soon.
What Is (Your Quest)?
So, what is the stock symbol for the (quantum glass battery)?
— Edgar R.
What is the airspeed velocity of an unladen swallow?
I’m sorry Edgar, I’m not familiar with whichever specific quantum glass battery stock you’re looking for.
These batteries are pretty cool, though, and could lead to a massive breakthrough in energy storage and mileage between charges for electric vehicles (EVs) … once they’re actually ready for the market, that is.
Now, just so you don’t leave empty-handed, here are three companies currently working on quantum glass batteries:
These may or may not be the quantum glass battery stocks you’re looking for.
However, I have an even better battery opportunity for you.
It’s a tiny device that can power a whole American city with “endless energy.”
Don’t believe me? Click here now for the full details.
Plug and Inovio Walk Into a Bar…
What do you think if PLUG and the recent runup in INO?
— Tommy D.
Thanks for writing in Tommy!
What do I think … hmmm … what do I think? You know, that’s a dangerous question.
Let’s start with Inovio Pharmaceuticals Inc. (Nasdaq: INO). I tried my hand with Inovio way back at the beginning of this whole pandemic thing, and Great Stuff Picks readers came away with an average gain of about 117% in about a month!
Since then, I’ve not touched vaccine-related stocks for good reason. The speculation, the volatility, the sheer number of companies developing vaccines … all of these factors make stocks like INO better for day traders and options enthusiasts.
INO’s recent spike is a great example of this. The stock rallied following an investor presentation. And then it fell today when no “Warp Speed” grant arrived and Roth Capital reiterated its sell rating on the shares. I don’t know about you, but I don’t have enough Pepto Bismol to keep playing this game.
Turning to Plug Power Inc. (Nasdaq: PLUG), I really like this company and I think many investors are still overlooking the potential that hydrogen represents as a power source — especially for batteries and EVs.
In fact, Plug could make a nice, steady alternative investment for anyone disillusioned with Nikola Inc.’s (Nasdaq: NKLA) recent fiasco. I still stand behind my NKLA recommendation, but Plug Power is a market leader in hydrogen fuel cells and anyone looking to compete with Nikola would do well to consider partnering up with Plug Power.
Plug is on the Great Stuff Picks short list of stocks to watch. Who knows? When the time is right, we may officially tell you to pull the trigger on this stock.
Great … Just Great!
I really enjoy the humor and information you provide!
Fast, funny, informative! Keep up the great work!
I have now subscribed to the Great Stuff for about seven weeks.
The daily email is something I really look forward to at the end of my day.
No matter how bad the market has been and how devastated my portfolio looks, I take comfort in the Great Stuff in the email of the day.
Makes a big difference to me. And to many more, I reckon.
Thanking you for all that Great Stuff.
I’m not crying … sniff … you’re crying.
Sure, I love making you money when I can and informing you of all the comings and goings on Wall Street. But if my dark and twisted humor can brighten your day, it makes this all worth it.
Thank you, Daniela, Aashish and all the other Great Ones out there who haven’t written in but keep reading looking for a spark to lighten their load during this pandemic.
From all of us here at Great Stuff (even my absent editor), you guys are the real heroes.
And if you haven’t written in yet, what’s stopping you? We don’t bite! (That costs extra.)
Reach out for free at GreatStuffToday@BanyanHill.com. Ask us about the market, stocks you’ve got your eye on, the Fed’s doping of Wall Street or … just tell us how you’re holding up in this wild, wild world.
We’ll catch you this time next week (or thereabouts) with your next installment of Reader Feedback.
Until next time, be Great!
Editor, Great Stuff