One way to earn (whether extra or not) income is through meme stock when you have cash or borrowed money. Fast cash? But what happened when you are seeing too many of such popping up one after another? Signs of prosperity or troubles ahead? Where do you lean towards?
Frenzy buying is still happening despite being reminded by the Fed will keep the rate longer. Even if it going to be in Sep, realistically poor performance on some stocks will persist like Deere, Home Depot, etc. Their shares begin to go lower, but not higher, like TSLA. Against the fundamentals will not help the stock to innovate and improve like making innovations only known to just one person alone, hence the firing and layoffs are not at will of this one person, but a collective effort of its staffers! It would take a longer time for the company to turnaround fast and lower dividends to realise its full potential!
Top Calls on Wall Street: Tesla, Nvidia, Netflix, Dell, Palo Alto Networks, FedEx and More
It won't go higher until there is a rate cut then it will shoot up and even cross 5800 S&P index. But meanwhile inflation stays and costs are still high for any meaningful revenue growth or profit margin for a lot of companies (most just met the forecast - which was forecasted lower from previous) so why people are on a buying spree is just a matter of priced in the cut, duh!
Btw, inflation is when too much money chasing after too few goods! So if you see the stock market continues to climb for a type of stock like TSLA it means more money are chasing after a stock that has high multiples of PE and also when its scorecard is simply not improving, that's where inflation is sticky so something the Fed may take longer to reduce interest rate, make sense?
Top Calls on Wall Street: Tesla, Nvidia, Roblox, Western Digital, Boston Beer and More
But TSLA fans still buy.. but it won't be long before a sharp drop I anticipate. Either way, I would like to see how TSLA fare by the end of this week or early next week!
Top Calls on Wall Street: Tesla, Nvidia, Roblox, Western Digital, Boston Beer and More
So car sales will be dampen even further and longer since higher interest expense will discourage car buyers - and other asset class, like housing, etc. Hence Home Depot continues to see lower sales because less people are doing stuff for their homes because of lesser discretionary spending, etc. And while the Fed is to keep the rate longer that means no new stimulus to the market, thus the market has to see a downturn before it gets better when the rate cut kicks in later end Q3 to Q4. But market is bouyant and may have a soft landing so maybe S&P will go down below 5,000 and stay there for a while before going up again.
Powell Reiterates Fed Likely to Keep Rates Higher for Longer
Well, no reasons for the rise and just being optimistic! Keep buying... meme stocks skyrocketed... so everything seems rosy...:) some companies are doing well also, like Tesla!! Big news coming... while higher tariffs for China EVs are expansionary or inflationary For US? Fed remains cautious to cut interest rate in June hence.
Market is always emotional, in spite of how the fundamentals make sense or not. Traders ride on the sentiment, do you think so? I believe Wells Fargo and another bank have said the same thing according to your best assessment a few weeks back if not months but look at the market now it is irrational - most of the times?
I could never understand how DJT could remain at that stock price level of $55 despite steep losses in its media businesses; even if they stop people from short selling, don't they have eyes to see that this is simply distasteful to other more decent stocks? Hm... very strange and unbelievable! Well, called it 'rigged' but there is more to it than meets the eyes..?
It becomes a habit for consumers to keep spending despite some impending shocks that are going to happen soon due to the continued rise in inflation benchmark!
The April CPI Report May Shock The Market And The Fed