💰 $ProShares Ultra VIX Short-Term Futures ETF(UVXY)$ / $Direxion Daily Financial Bear 3x Shares(FAZ)$ / $Direxion Daily Gold Miners Index Bear 2X Shares(DUST)$ : Tariffs trigger indiscriminate sell-offs, showcasing the effectiveness of inverse leveraged ETFs.
💹 $Alliant(LNT)$ / $Edison(EIX)$ / $NextEra(NEE)$ : Potential beneficiaries of U.S. tariffs, cautiously optimistic while maintaining a watchful stance.
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Rrreally got me goosebumps - Live long & prosper!
| Market recap 💹
Last week, Wall Street experienced a historic decline. Trump's comprehensive reciprocal tariffs caused a significant drop in U.S. stocks, with nearly $6.5 trillion evaporating in just two days.
Over the week, $S&P 500(.SPX)$ fell by 9.1%, while $NASDAQ(.IXIC)$ dropped by 10%.
Among the S&P 500, the companies that experienced the largest declines for the week included: $apache(APA)$ down 27%, $Micron Technology(MU)$ down 27%, and $Microchip Technology(MCHP)$ down 26%.
Megacaps - bad Apple
$Apple(AAPL)$ faces pressure from all sides. The majority of iPhones, over 50% of Macs, and 75% to 80% of iPads are still produced in China, where the total tax rate will reach 54%. In addition to soaring inflation and rising prices, the tariffs are expected to reverse any burgeoning positive consumer trends.
MAGA - nostalgia
Trump is attempting to reshape the U.S. economy and global trade system. Following President Trump’s announcement of the largest tariff increase in nearly a century on Thursday, his economic agenda appears to mirror that of 19th-century President William McKinley. The 25th President of the United States passed the McKinley Tariff Act in 1890, which raised tariffs on most imported manufactured goods to around 50%.
Top movers - some like it hot
Vietnam was the first to raise the white flag to Trump, with the victory of tariffs boosting the stock prices of $Nike(NKE)$ and $Lululemon Athletica(LULU)$, making them some of the few large stocks that rose on Friday night.
Next week will be extremely busy for Wall Street, with a focus on key inflation data and the start of Q1 earnings season.
Investors are keen to know whether the market has bottomed after two days of global declines or if more pain is yet to come.
| No-brainers, YES
Risk and reward often go hand in hand; the current technical bear market translates into opportunities to hedge risks using leveraged inverse ETFs.
$ProShares Ultra VIX Short-Term Futures ETF(UVXY)$ +70%: Over the past week, the Chicago Board Options Exchange Volatility Index climbed by 109.3%. Any fluctuations in the stock market may occur in the coming weeks, so remember to fasten your seatbelt.
$Direxion Daily Financial Bear 3x Shares(FAZ)$ +32%: Last week, the financial sector was one of the poorest-performing industries, dropping 10.3%. Due to the unpredictable impact of tariffs on the economy and the disappointing performance of recent IPOs like CoreWeave, many high-profile companies have rapidly pulled their IPOs, such as Klarna halting its listing plans. Major Wall Street bank stocks have underperformed relative to the broader market.
$Direxion Daily Gold Miners Index Bear 2X Shares(DUST)$ +17%: Following the tariffs, gold experienced a significant retreat, with spot gold and COMEX gold briefly falling below $3,000, as the accumulated fear of high prices still needs to be released.
| But no rush
Prudent investing remains paramount, and patience rewards. The recent tariffs impose high barriers on renewable energy products such as solar and lithium batteries from China, making the performance of companies in the energy sector worthy of observation.
LNT - Pre-market up
$Alliant(LNT)$ is primarily engaged in the utility sector, providing electricity and natural gas services, with a commitment to clean energy and sustainability.
The company has announced a new renewable energy project to advance its transition to green energy and further strengthen its market position in the renewable energy sector.
EIX - Valuation appears attractive
$Edison(EIX)$ is a holding company based in California, primarily providing electric utility services through its subsidiary, Southern California Edison, serving over 15 million residents.
The company has announced a new renewable energy investment plan aimed at accelerating the transition to clean energy and strengthening its market position in renewable electricity.
NEE - Approaching a rebound position
$NextEra(NEE)$ is a leading clean energy company in the U.S., primarily engaged in the production and distribution of electricity, with a strong focus on renewable energy, particularly wind and solar power.
NEE has announced a new renewable energy project, planning to significantly expand its wind and solar generation capacity in the coming years to meet the growing demand for clean energy.
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