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Ultimate Investor Update – Ep. 5

ultimate investor update

You found it! Your official source for stock market information.

Are you looking for stock ideas? If so, checkout the Ultimate Investor+ page.

That being said, a lot is happening in the markets these days. To recap,

  1. Retail investors are manipulating markets like Gamestop (GME – NYSE)
  2. Federal Reserve struggles to keep a lid on interest rates
  3. Global debt explodes higher
  4. Bitcoin keeps going up
  5. Gold and silver are comatose

Undeniably, it’s safe to say you should be careful out there. Nevertheless, fundamentals still apply. Above all, that’s what professionals do. For that reason the Ultimate Investor Update focuses on the fundamentals.

In fact, that’s exactly what we are going to do in this post.

F/X Markets

The f/x markets are sending mixed signals at the moment. For example, you have the US dollar is a downtrend along with gold. But, Bitcoin is going through the roof! Go figure.

10 year US treasury yield chart

And gold is following the US dollar down the drain.

GLD etf daily price chart

Surprisingly, Bitcoin is going through the roof! Without a doubt this dichotomy is a head scratcher. Is Bitcoin the new safe haven trade?

Bitcoin daily price chart

Bond/Debt Markets

Undeniably the debt market is THE most important in all of finance. If you are serious about investing, without a doubt the 10 year US treasury market should be the first market you look at.

Simply put, if yields rise money is leaving the bond market is search of greener pastures. But, the Federal Reserve must keep rates low. If not, the whole house of card comes crashing down. In truth, what’s happening in the debt market is scary. It tells us the Federal Reserve is losing control.

10 year US treasury yield chart

Stock Market

The S&P 500 and the NADSAQ index are behaving in the same manner. Moreover, they are headed in the same direction – UP! As shown above money is flowing out of the debt market (10 year US treasury) and flooding into the stock market. This trend looks solid and is not breaking down.

S&P 500 Stock Index - SPY

Conclusion

As I have shown the stock market is climbing a wall of worry. Although this may be true it’s normal. In any case, leave your emotions at the door and stick to the fundamentals.

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In reality money is leaving the debt market (10 yr US treasury) and pilling into the stock market. Of course this good for stocks. To be sure opportunities to “buy the dip” are few and far between. So be ready.

I hope you found this post helpful.

Are you looking for companies that are killing it? Companies that are flying under the radar. If so, checkout the Ultimate Investor portfolio+ page. Here you will find a list of great companies including fundamental and technical analysis.

DISCLAIMER: Content provided in this article is for informational and entertainment purposes only. This article is not legal and/or investment advice. This article should not replace professional investment advice based upon your particular situation. Duties are not assumed, intended or created by this communication.

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