We knew things were bad with some of the banks…but First Republic Bank took it to a whole new level.
The battered regional bank SHOCKED markets when it said 40% of its deposits fled, fearing the company wasn’t on stable financial ground.
Despite falling more than 86% this year, shares tumbled almost 50%, pricing the stock below $10 and into ‘penny stock’ territory.
Unfortunately, financial news networks, who will not be named, felt the need to parade ‘financial analysts’ across the screen like some dog and pony show. These windbags bloviated, gaslighting views with placations and utter nonsense.
We looked deep into First Republic’s financial results and are confident when we say the bank will NEVER recover, at least not in its current form.
But if you thought this was a one-off fluke, you haven’t paid attention to earnings.
Even those safe blue-chip stocks are grenades in your portfolio, waiting for someone to pull the pin.
All of it can seem overwhelming at times.
Fortunately, no one has to sit back and let the market bully them out of their hard earned wealth.
We aren’t lying when we say we LOVE market crashes.
Not only does it sweep away the weak stocks, but it creates an UNBELIEVABLE OPPORTUNITY to rake in the cash.
That’s a bold claim and you have every right to be skeptical. We’d hope our readers didn’t take every written word at face value.
So, let us lay out the case for a crash and then PROVE to you that we have a strategy that does what we claim.
But if you can’t wait for the end of the article, then you can CLICK HERE to get a sneak peek.
Tangible Purchases Evaporate
While most of the market was focused on First Republic Bank, the most disturbing news came from United Postal Service (UPS).
The following is a slide from their investor presentation delivered on Tuesday:
Source: UPS Q1 2023 Investor Deck
Soft colors belie the real dangers of this horror story.
The left side of the deck provides a histogram that bridges revenues from Q1 of 2022 to Q1 of 2023.
Only two levers matter here: price and volume.
Volume dropped a whopping 5.4%, costing the company $819 million in Q1 alone. To offset lower throughput, UPS jacked up prices by 4.8%.
Line graphs on the right side demonstrated how severely B2B volume fell EVERY month in Q1.
These problems aren’t limited to the U.S.
Remember when hundreds of cargo ships moored off the port of L.A.?
That place turned into a ghost town.
None of this is good news. But remember, we’re not even in a recession yet.
The Fed is STILL RAISING RATES to combat inflation. Yes, they have slowed the pace, but they haven’t stopped.
So, let’s put this in perspective:
- We have lower economic activity in terms of volume in the U.S.
- International shipments dropped by a third
- Banks are failing because of higher rates
- The Fed is still raising rates because companies like UPS are increasing prices to offset volume losses
This is what’s known as a feedback loop. It led to a lost decade in the 1970s and is looking to repeat itself 50 years later.
Uncertainty = Volatility = Opportunity
Imagine we wanted to sell you a nice 1967 Chevy Impala hardtop—our ask – $50,000.
We send you a few photos from the outside of the car.
Would you buy it?
Hopefully not. There would be a bunch of questions you’d want to know such as the mileage, engine, does it even run?
Now, if we dropped the price to $5,000, it wouldn’t really matter what’s wrong with the car, $5,000 is just too cheap.
Markets are the same way. The more information they have, the more accurately they can price assets.
More uncertainty means a wider range of prices.
That range is exactly how day traders earn their keep.
They exploit uncertainty, gobbling up assets when they get too cheap and selling them when they are overpriced.
However, the average investor struggles to narrow his or her focus.
We’ve seen a lot of folks try to trade everything and never turn a profit on any of it.
But limiting yourself to just one ticker can be tough… unless you pick the right one.
Thankfully, we’ve got a solution that is perfect for this market.
Hugh Grossman and Ahren Stephens recently joined the Eagle team.
Their challenge – Turn $2K into $10K in just 90 days!
So, how have they done so far?
In the first week:
- Won six out of seven trades
- Up $558 overall
- +$181 ahead of schedule
While that might not seem like much, this is just the start of their 3-month journey.
Most traders who attempt such a feat push too hard too fast and never reach their goals.
Hugh and Ahren walk their subscribers through the methodology, narrating their decisions in what we’d argue is a first-of-its-kind trading room.
Anyone can put out trade signals.
RARELY do they explain WHY and HOW the trades work.
Again, we expect you to be skeptical. You SHOULD expect proof.
That’s why DayTradeSpy comes with a 30-day money-back guarantee, no questions asked…
…a FULL MONTH to test-drive our newest service and gauge its performance.
