Why Stocks Crashed and Exactly How to Invest Now 2024
Published: 2024-07-29
Status:
Analyzed
Published: 2024-07-29
Status:
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
EVgo is projected to achieve a strong 54% revenue growth in 2024, despite expected negative earnings.
"earnings are still expected deeply negative for the year but a very strong 54% Revenue growth"
Pending
McDonald's earnings report, due on Monday (July 29, 2024), could reveal significant problems within the quick service restaurant industry.
"McDonald's ticker MCD could confirm deep trouble in the quick service restaurant industry when it reports before the Market opens on Monday"
Pending
SoFi Technologies (SOFI) retains its long-term upside potential.
"and the long-term upside is still intact"
Pending
A legitimate market correction (10% or more drop in S&P 500) is likely as capital shifts from big tech to broader market sectors.
"there is a good chance we see a legit correction as money rotates out of big Tech into the rest of the market"
Pending
Magnificent Seven tech stocks could experience a significant drop, potentially much more than a 10% correction.
"it's going to feel like a crash though for anyone in those mag 7 stocks which could fall much further than that simple 10% correction"
Pending
ChargePoint Holdings (CHPT) is held with a positive expectation for its performance over the next year (from July 2024) based on the EV charging theme.
"I'm holding it along with charge Point Holdings Ticker chpt on the charging theme over the next year"
Pending
McDonald's (MCD) Q2 earnings, reported on Monday, July 29, 2024, are likely to surprise to the downside.
"so there is a good chance that the house that Ronald built surprises to the downside on Monday"
Pending
The current market selloff, particularly in expensive sectors like technology, may continue for an additional 3% to 5%.
"that selloff may still have 3 to 5% left to run especially in those most expensive sectors like tech"
Pending
The S&P 500 is not expected to drop an additional 16% from its current level (July 29, 2024), which would indicate a full market crash.
"another 16% drop from here and there's nothing that points to that happening"
Pending
The current bull market is expected to persist, with stocks continuing to rise over the next few years due to strong catalysts.
"there are very strong catalysts that should keep this bull market and stocks heading higher over the next few years"
Pending
A 'legit correction' (10% or more) for the S&P 500 is likely due to money rotating out of Big Tech, with Magnificent Seven stocks (Tesla, Nvidia, Apple, Microsoft, Meta, Alphabet, Amazon) potentially falling much further than 10%.
"There is a good chance we see a legit correction as money rotates out of big Tech into the rest of the market it's going to feel like a crash though for anyone in those mag 7 stocks which could fall much further than that simple 10% correction"
Pending
The Federal Reserve is expected to begin lowering interest rates in September.
"interest rates are set to start coming down in September"
Pending
The current market sell-off, particularly in expensive sectors like technology, may continue for another 3-5%.
"while that selloff may still have 3 to 5% left to run especially in those most expensive sectors like tech"
Pending
The market anticipates six Federal Reserve interest rate cuts, totaling up to 1.5%, by mid-2025.
"the market is pricing in the likelihood of six rate cuts by mid 2025 taking as much as 1 and a half% off interest rates"
Pending
Strong catalysts are expected to keep the bull market and stock prices heading higher over the next few years.
"there are very strong catalysts that should keep this bull market and stocks heading higher over the next few years"
Pending
Lower interest rates could unlock at least $13 trillion from home equity, money markets, and checking accounts, with a significant portion flowing into the stock market.
"at least 13 trillion could be unlocked with those lower rates and much of that flow into the stock market"
Pending
Interest rates are predicted to start decreasing in September 2024.
"interest rates are set to start coming down in September"
Pending
The market anticipates six interest rate cuts, totaling up to 1.5% off interest rates, by mid-2025.
"but the market is pricing in the likelihood of six rate cuts by mid 2025 taking as much as 1 and a half% off interest rates"
Pending
S&P 500 company earnings are projected to increase by 10.5% in 2024 and 14.5% in 2025, reaching nearly $279 per share.
"analysts are now expecting earnings to rise 10.5% this year and a very strong 14.5% next year to almost $279 per share for the companies in that index"
Pending
At least $13 trillion in value from home equity, money markets, and checking accounts could be unlocked by lower interest rates, with much of it flowing into the stock market.
"at least 13 trillion could be unlocked with those lower rates and much of that flow into the stock market"
Pending
Analysts expect S&P 500 companies' earnings to increase by 10.5% in 2024 and 14.5% in 2025, reaching nearly $279 per share.
"analysts are now expecting earnings to rise 10.5% this year and a very strong 14.5% next year to almost $279 per share for the companies in that index"
Pending
Within the next 6 to 12 months, there will be favorable buying opportunities for tech stocks.
"time will come within the next 6 months to a year that we're going to see some very good deals"
Pending
Very good investment opportunities in stocks are expected to emerge within the next 6 months to a year (from July 2024).
"and time will come within the next 6 months to a year that we're going to see some very good deals"
Pending
The remaining four Magnificent Seven stocks (Microsoft, Meta, Amazon, Apple) are likely to report disappointing earnings this week.
"the likelihood that we see those disappointing earnings from the remaining four stocks this week"
Pending
Tech stock valuations could become attractive by the end of 2024, driven by rising earnings even if prices do not decline further.
"tech stocks could start looking attractive by the end of this year even if prices don't fall further just on those Rising earnings"
Pending
Disappointing earnings are likely from the remaining four Magnificent Seven stocks (Microsoft, Meta, Amazon, Apple) reporting in the week of July 29, 2024.
"the likelihood that we see those disappointing earnings from the remaining four stocks this week you might want to cover some of your positions just a little"
Pending
The market indicates an 87% probability of at least a 0.25% Fed rate cut in September, with a 13% chance of a 0.50% cut or greater.
"the market is now pricing in 87% odds the FED cuts at least a quarter of a percent in September and 133% so 100% rate rate cut bets but 133% that it goes even further to a half a percent cut or more"
Pending
The upcoming non-farm payrolls report (due Friday, August 2, 2024) is expected to show 190,000 jobs created (down from 206,000), an unchanged unemployment rate of 4.1%, and hourly wage growth slowing to 3.7% year-over-year (from 3.9%).
"the non-farm payrolls report the monthly jobs picture which is expected to show just 190,000 jobs were created last month versus 206,000 jobs the month before now while the unemployment rate is expected unchanged at 4.1% hourly wage growth is expected to slow from 3.2 3.7% from last year versus a 3.9% pace to last month"
Pending
Tech stocks could start to appear attractive by the end of 2024, even without further price drops, due to rising earnings.
"so tech stocks could start looking attractive by the end of this year even if prices don't fall further just on those Rising earnings"
Pending
Analysts predict S&P 500 companies will report 10.9% earnings growth and 5% revenue growth for the full year 2024.
"for the full year analysts do expect companies in the S&P 500 to report 10.9% earnings on 5% Revenue growth"
Pending
The upcoming non-farm payrolls report is expected to have a positive impact on stock prices.
"the report is likely to be supportive of stocks"
Pending
The bull market is expected to remain firmly intact, even with potential small corrections.
"even if we see those small Corrections along the way the bull market is still firmly intact"
Pending
The market anticipates an 87% probability of the Federal Reserve cutting interest rates by at least 0.25% in September 2024.
"the market is now pricing in 87% odds the FED cuts at least a quarter of a percent in September"
Pending
Small cap stocks represented by the iShares Russell 2000 ETF (IWM) are expected to receive a significant boost from future Federal Reserve interest rate cuts.
"the iwm as companies that are generally more sensitive to interest rates and should get a bigger Boost from fed cuts to come"
Pending
ChargePoint Holdings (CHPT) and EVGO are expected to perform well over the next year, driven by the EV charging theme.
"I'm holding it along with charge Point Holdings Ticker chpt on the charging theme over the next year"
Pending
If McDonald's (MCD) reports disappointing earnings, other quick service restaurant stocks like Wendy's (WEN) and Yum Brands (YUM) are also likely to face similar challenges.
"if it does investors should also be watching out for others in the space including Yum brands ticker Y which is going to be reporting August 6th and Wendy's ticker WN which reports later this week on Thursday"
Pending
Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Amazon (AMZN) are likely to report disappointing earnings during the week of July 29, 2024.
"the likelihood that we see those disappointing earnings from the remaining four stocks this week you might want to cover some of your positions just a little"
Pending
A legitimate market correction (10%+ drop in S&P 500) is likely as money rotates out of Magnificent Seven tech stocks, which themselves could fall much further than 10%.
"there is a good chance we see a legit correction as money rotates out of big Tech into the rest of the market it's going to feel like a crash though for anyone in those mag 7 stocks which could fall much further than that simple 10% correction"
Pending
The current market sell-off, particularly in tech stocks, is expected to continue with a further 3-5% drop.
"while that selloff may still have 3 to 5% left to run especially in those most expensive sectors like tech"
Pending
The current bull market in stocks is expected to continue heading higher over the next few years due to strong catalysts.
"there are very strong catalysts that should keep this bull market and stocks heading higher over the next few years"
Pending
The Federal Reserve is expected to start cutting interest rates in September, with the market pricing in six rate cuts totaling 1.5% by mid-2025.
"interest rates are set to start coming down in September the FED isn't likely to lower rates as quickly as it raises them but the market is pricing in the likelihood of six rate cuts by mid 2025 taking as much as 1 and a half% off interest rates"
Pending
Lower interest rates are expected to unlock at least $13 trillion from home equity, money markets, and checking accounts, with much of it flowing into the stock market.
"at least 13 trillion could be unlocked with those lower rates and much of that flow into the stock market"
Pending
S&P 500 company earnings are expected to increase by 10.5% in 2024 and 14.5% in 2025, reaching nearly $279 per share.
"analysts are now expecting earnings to rise 10.5% this year and a very strong 14.5% next year to almost $279 per share for the companies in that index"
Pending
Opportunities for very good deals on big tech stocks like Nvidia, Google, or Amazon are expected within the next 6 months to a year.
"time will come within the next 6 months to a year that we're going to see some very good deals"
Pending
The world is projected to become increasingly reliant on technology, implying long-term growth opportunities for tech stocks.
"it's a tech world and it's going to become increasingly that way so investors don't want to wait too long to start picking up deals in stocks of this sector"
Pending
Tech stocks could become attractive by the end of 2024 due to rising earnings, even if prices don't decline further.
"earnings in the sector are expected up 19% this year and 20% in 2025 so tech stocks could start looking attractive by the end of this year even if prices don't fall further just on those Rising earnings"
Pending
Despite potential small corrections, the bull market is expected to remain firmly intact.
"even if we see those small Corrections along the way the bull market is still firmly intact"
Pending
The market is currently pricing in an 87% probability of a Federal Reserve rate cut of at least 0.25% in September, with a 13% chance of a 0.50% or larger cut.
"the market is now pricing in 87% odds the FED cuts at least a quarter of a percent in September and 133% so 100% rate rate cut bets but 133% that it goes even further to a half a percent cut or more"
Pending
The upcoming non-farm payrolls report is expected to show 190,000 jobs created last month.
"the non-farm payrolls report the monthly jobs picture which is expected to show just 190,000 jobs were created last month versus 206,000 jobs the month before"
Pending
Hourly wage growth is predicted to slow to 3.7% year-over-year.
"while the unemployment rate is expected unchanged at 4.1% hourly wage growth is expected to slow from 3.2 3.7% from last year versus a 3.9% pace to last month"
Pending
A non-farm payrolls report showing around 205,000 jobs created would still indicate a weakening economy and support the likelihood of September interest rate cuts.
"even another surprise reading around 205,000 would still confirm a weakening economy and keep those September rate cuts on the table"
Pending
A surprisingly low jobs report could further increase the probability of an interest rate cut.
"while a surprisingly low job number could put the odds at even bigger for a rate cut"
Pending
The upcoming non-farm payrolls report is expected to be supportive for the stock market.
"the report is likely to be supportive of stocks"
Pending