Category: General

Are Bearish Investors Coming Out of Hibernation?

Posted on by The INO.com Team

Please enjoy this updated version of weekly commentary from the Reitmeister Total Return newsletter. Steve Reitmeister is the CEO of StockNews.com and Editor of the Reitmeister Total Return.

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I have been bearish since May 2022. However, I have to admit that the early 2023 evidence did increase the odds of a potential return to a bull market.

That party is over!

Let’s discuss the increasing evidence that bears are ready to come out of hibernation with much more downside to follow. And yes, this will come hand in hand with a trading plan to stay on the right side of action.

Market Commentary

Plain and simple, stocks rallied on a false premise to start 2023.

That being some signs of moderating inflation that could lead the Fed to end their rate hiking regime earlier than expected. This soft landing scenario compelled more investors to believe that bottom was already established and time to bid up stocks for the birth of the next bull market.

The Fed whole heartedly repudiated this idea at the February 1st meeting. They saw inflation as too sticky with no plans to change their hawkish course with higher rates in place through year end.

Bulls were clearly huffing aerosol paint cans at the time because they rallied on the false notion these statements were somehow dovish. The best I can figure out is that because Powell was not pounding the podium and foaming at the mouth that he was somehow dovish.

Clearly not true.

Since then more investors have gotten the memo that the early year rally was premature. Especially after Thursday when the Producer Price Index showed that inflation is much higher than expected.

I saw that event as Strike 3 for bulls as it came on the heels of 2 other events showing inflation being much higher than expected. Continue reading "Are Bearish Investors Coming Out of Hibernation?" →

3 Top Auto Stocks For 2023

Posted on by The MarketClub Team

Last year, the automotive industry’s growth was hampered by macroeconomic challenges, including rising interest rates, material inflation, and continued supply chain issues.

Industry estimates of new vehicles sold in the united states in 2022 range from 13.7 million to 13.9 million, representing a decline of roughly 8% to 9% from the 2021 level and the lowest level since 2011.

However, auto industry executives are cautiously optimistic about a rebound in new vehicle sales in 2023. Toyota Motor Corp (TM) expects U.S. auto sales to grow 9% from the previous year to about 15 million this year. Also, S&P Global Mobility and Edmunds project new vehicle sales to be 14.8 million, while Cox Automotive’s preliminary forecast is around 14.1 million.

Moreover, consumer spending remained strong in the first month of 2023. The Commerce Department reported last Wednesday that retail sales grew by 3% in January, exceeding the estimate of a 1.9% increase. A significant jump in auto sales primarily drove the gain in retail sales.

Furthermore, sustained demand for electric vehicles (EVs) should boost the auto industry’s growth. U.S. EV sales leaped by two-thirds over the past year. According to year-end figures released by market research firm Motor Intelligence, automakers sold approximately 807,180 fully electric vehicles (EVs) in the United States in 2022, up 3.2% year-over-year.

What do you expect the electric vehicles market share in the United States to be by 2030?

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Based on a report by Contrive Datum Insights Pvt Ltd, the global electric vehicle market is projected to reach over $1.10 trillion by 2030, growing at a CAGR of 23.1%.

Given the promising prospects, it could be wise to take advantage of the uptrend in auto stocks General Motors Company (GM), Stellantis N.V. (STLA), and Honda Motor Co., Ltd. (HMC) for outsized returns this year. Continue reading "3 Top Auto Stocks For 2023" →

ChatGPT and AI Investing in 2023

Posted on by The MarketClub Team

Schools, colleges, corporate boardrooms, and even family dinners are all abuzz with the common topic of conversation: ChatGPT. It would still be an understatement to say that it has taken the world by storm.

The easily accessible chatbot signed up 1 million users in five days and amassed 100 million monthly active users only two months into its launch.

To put this in context, TikTok, the erstwhile fastest-growing app, took nine months to reach 100 million users.

Daily Visits OpenAI

Source: www.cnbc.com

Many users feel that ChatGPT may eventually have the power to disrupt how humans interact with computers and change how information is retrieved. To make things more interesting, its creator, which has launched the chatbot to demonstrate what it is capable of, is just getting started.

We delve deeper to find out what the hype is all about and how investors and traders may stand to benefit from it. Continue reading "ChatGPT and AI Investing in 2023" →

What’s the next AMC or GME?

Posted on by The INO.com Team

Were you in the action when AMC and GME exploded?

JC Parets of All Star Charts is on the search to find the next set of big squeezes - actually, he may have already found them.

He’s going to show you the tools he’s using in a free, live event on Thursday, February 16, at 1:00 pm E.T.

Just for showing up, he’ll share six tickers that look a lot like AMC and GME did before they posted explosive gains.

Register here FREE

The tickers he’ll share come from his Freshly Squeezed Watch List, with stocks under serious technical pressure right now.

He’ll talk about catalysts, entry points, and price targets for each of them.

And he’ll show you how to get “buy” alerts and “sell” alerts so you can capture major short-squeeze gains.

We're in the very early stages of a new bull market. It’s a period of expanding participation, where just about everything is working.

And we're about to see explosive moves for no other reason than some permabears have overstayed their welcome.

Join JC at 1:00 pm E.T. on Tuesday. Click here to reserve your seat!

The INO.com Team

Up 66%, Is SOFI Stock Now a Buy?

Posted on by The MarketClub Team

Personal finance fintech company SoFi Technologies, Inc. (SOFI) reported solid fourth-quarter results.

Its loss per share came below analyst estimates, and its revenue beat the consensus estimate by 4.1%. The company’s adjusted net revenue in the fourth quarter came in 4.2% above its guidance range high of $425 million, and its adjusted EBITDA came $23 million above the high-end of its guidance.

SOFI’s CEO Anthony Noto said, “Record revenue across all three of our business segments – Lending, Technology Platform, and Financial. Our continued strong growth and significant improvement in GAAP net income margin position us very well in 2023 for another year of significant revenue and EBITDA growth and for reaching GAAP net income profitability in the fourth quarter.”

SOFI’s solid results could be attributed to its total deposits, which rose 46% sequentially and more than 700% in 2022 to $7.34 billion. The company benefited from the Fed’s aggressive interest rate hikes leading to its rise in net interest income.

The company added 480K members in the fourth quarter. Its total members came in at 5.22 million, rising 51% year-over-year. It added 695K new products in the fourth quarter, bringing total products to 7.89 million in 2022, increasing 53% year-over-year.

Noto said, “Our strong momentum in member and product adds, and the momentum in products added from cross-buy, reflects the benefits of our broad product suite and Financial Services Productivity Loop (FSPL) strategy.”

“Total deposits at SoFi Bank grew 46% sequentially during the fourth quarter to $7.30 billion at year-end, and 88% of SoFi Money deposits are from direct deposit members. We continued to see nearly half of newly funded SoFi Money accounts set up direct deposit by day 30, and average spend in the fourth quarter rose 25% versus the third quarter. As a result of this growth in high-quality deposits, we are benefiting from a lower cost of funding for our loans,” he added.

For the first quarter of fiscal 2023, the company guided its adjusted net revenue between $430 million to $440 million.

In addition, it expects its adjusted EBITDA to come between $40 million to $45 million. In the fourth quarter of fiscal 2023, the company expects positive GAAP net income and a 20% incremental GAAP net income margin for the full year. Continue reading "Up 66%, Is SOFI Stock Now a Buy?" →