Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


This Two-Minute Market Move Could Make You Rich

This Two-Minute Market Move Could Make You Rich[Revealed] How to generate instant income from the stock market. Over and over again. At will. This technique is so powerful – and safe – we’re guaranteeing you can use it to generate $1 million (or more) in retirement cash. And we’ll even send you a $1,000 check to kickstart your journey. Go here for details.


Let the Good Times Roll

By Jim Pearce on July 28, 2017

We’ve all heard the old joke about the airline pilot who announces to his passengers that unfortunately he is lost, but the good news is they’re making very good time.

This type of contradictory behavior is sometimes referred to as “cognitive dissonance,” and I’m noticing more of it as investors keep pumping money into exorbitantly priced momentum stocks.

I was reminded of that on July 26, when the Federal Reserve announced it would leave interest rates unchanged for the time being and affirmed its conservative “dot plot” of future rate hikes due to lessening concerns over inflation. That’s good news for bondholders, but if inflation is tied to economic growth, it’s fair to ask what that news portends for shareholders that participate in corporate profits via rising dividends and higher equity values.

It appears most investors are willing to look the other way. Boosted by strong second-quarter earnings reports from longtime stalwarts McDonald’s (NYSE: MCD) and Caterpillar (NYSE: CAT), the Dow Jones Industrial Average surged to a record high the same day the Fed made its announcement. It’s heartening that sexy tech stocks aren’t the only strong performers these days, especially since many of those companies are already grossly overvalued.

However, the wave of bigger-than-expected profits across all sectors of the economy suggests the Fed may need to raise interest rates more than it’s letting on. Employees at companies like McDonald’s and Caterpillar will demand higher wages, which in turn will spur inflation as that money is spent on the types of goods that comprise the consumer price index.

That dynamic won’t happen overnight, but gradually the data will dictate that either the Fed must raise rates faster than most people think, or earnings won’t be able to grow at a sufficiently robust pace to justify current stock market valuations.

Either way, sooner or later the small group of momentum stocks that have been leading the market higher will face their day of reckoning. It may not be next week or next month, but when it happens it will seem all too sudden.

Until then, a lot of fast money can be made in this stock market, and you don’t have to go looking in out-of-the-way places to find it. Shares of social media behemoth Facebook (NSDQ: FB) spiked 5% in one day after releasing another strong earnings report. Netflix (NSDQ: NFLX) stock did much better than that, jumping more than 10% on July 18 after releasing its quarterly report.

Exactly how, and when, all this unbridled optimism comes to an end is impossible to say, but sooner or later the incongruity of higher future earnings expectations and lower economic growth projections will have to be rectified.

You might also enjoy…


Boost Your Annual Income By As Much As $12,036

We’ve uncovered a unique income-boosting opportunity that allows you to collect up to $1,003 a month in extra government cash. 

This plan is available to everyone over the age of 18.

The amount you make isn’t dependent upon your marital status…

How much money you currently make…

Or even how much money you made in the past.

Best of all, because of the way Uncle Sam views the money that comes from this plan, your current—or future—Social Security benefits won’t be affected, either. 

There’s still time to get your name on the list for the next check run. 

I’ll show you how here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.