{"id":13601,"date":"2025-01-03T00:03:52","date_gmt":"2025-01-03T00:03:52","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/01\/03\/do-you-need-direction-for-2025-here-are-3-charts-you-should-not-ignore\/"},"modified":"2025-01-03T00:03:52","modified_gmt":"2025-01-03T00:03:52","slug":"do-you-need-direction-for-2025-here-are-3-charts-you-should-not-ignore","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/01\/03\/do-you-need-direction-for-2025-here-are-3-charts-you-should-not-ignore\/","title":{"rendered":"Do You Need Direction for 2025? Here Are 3 Charts You Should NOT Ignore"},"content":{"rendered":"
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A little less than a week ago, I wrote an article about inflation and how it\u2019s nothing more than a pipe dream in Fed Chief Jay Powell\u2019s head. Let me expand on that article, maybe from a slightly different approach this time. The inflation rhetoric just won\u2019t let up. Apparently, it makes no difference that the annual rate of core inflation has fallen from 6.7% to 3.3% and that the Fed sees this same core rate achieving its 2% target in 2027. The Fed still wants to talk about. So let\u2019s let \u2019em talk. I follow the charts and what Wall Street is saying through these charts. I\u2019m now to the point where I\u2019m simply ignoring Fed Chief Powell and his waffling group of naysayers. Wall Street is speaking and THEIR voice is quite clear, unlike the constant Fed waffling that we\u2019ve witnessed for 3+ years and counting.<\/p>\n

A few things happen when inflation is considered problematic. First, money rotates into hedges like gold, other commodities, and\/or real estate. Second, you sell the dollar as the currency will be negatively impacted by inflation. Finally, you sell growth stocks like CRAZY! Inflation eats away at the future earnings of growth companies and valuations are typically crushed as a result. I\u2019m going to skip gold\/commodities as I discussed both in my last article, but let\u2019s take a look at a few charts to see if Wall Street believes inflation is a problem.<\/p>\n

Real Estate<\/h2>\n

Certain areas of real estate, especially REITs, are a nice hedge against inflation as rents will typically be increased during inflationary periods. So this renewed inflation talk by the Fed is surely sending investors into real estate (XLRE), on a relative basis, correct? You be the judge.<\/p>\n

Wow, look at that money pour into real estate! <sarcasm><\/p>\n

The U.S. Dollar (UUP)<\/h2>\n

Next, it\u2019s time to confirm that everyone is selling the dollar, because you don\u2019t want to get caught holding that bag, when the Fed\u2019s worries about inflation prove true, right? Welllllll\u2026\u2026<\/p>\n<\/p>\n

Yep, Wall Street cannot stand the thought of owning the greenback.<\/p>\n

Growth Stocks<\/h2>\n

Holding growth stocks as inflation surges might be the worst possible investment of all. Growth stock valuations get HAMMERED during inflationary periods. We only have to look back at the 2022 cyclical bear market. Do you remember NVDA losing two-thirds of its market cap in less than 11 months? Even AAPL lost nearly 30% in 2022, before rallying strong as inflation peaked. These types of growth stocks will normally be pounded into the ground given rising inflationary expectations. So let\u2019s see how growth (IWF) is faring vs. the benchmark S&P 500 as inflation gets set to rise again (Fed worry):<\/p>\n<\/p>\n

Once again, you can say how incredibly nervous Wall Street is about the inflation predicament we\u2019re in. <more sarcasm><\/p>\n

MarketVision 2025<\/h2>\n

I don\u2019t listen to the Fed when Wall Street says not to. I\u2019ll let the media have its fun with the inflation problem we\u2019re up against (ha ha). Over the years, it\u2019s not about what you hear. It\u2019s always about what you SEE (in the charts). Ignore everything else!<\/p>\n

On Saturday, January 4th at 10am ET, MarketVision 2025 will begin and I\u2019m planning to lay out 2025 for you in a way that everyone can understand. This is our 6th MarketVision event and I\u2019ve nailed each of the last 5, in terms of market direction, and I\u2019m confident I\u2019ll nail this one too. I\u2019m not a perma-bull. During MarketVision 2022, I suggested the S&P 500 could drop 20-25% before it happened. If I believe we\u2019re going lower, I\u2019ll say it. Unlike the Fed, I have conviction. I also have a very bold call for you this Saturday. Want to join me? We\u2019re making this as easy as possible for you to join. To register for MarketVision 2025 and to gather more information, please CLICK HERE<\/a>. One more thing. We\u2019re adding a sweet bonus for all current non-members of EarningsBeats.com that register for Saturday\u2019s event. It\u2019s 1 year of EarningsBeats.com membership at no additional cost, a $997 value. Pay for the Saturday event and get a year of membership FREE. It won\u2019t get any better than this.<\/p>\n

Happy New Year to ALL! On behalf of EarningsBeats.com, I wish you all a healthy and prosperous 2025 ahead!<\/p>\n

Happy trading!<\/p>\n

Tom<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A little less than a week ago, I wrote an article about inflation and how it\u2019s nothing more than a pipe dream in Fed Chief Jay Powell\u2019s head. Let me expand on that article, maybe from a slightly different approach this time. The inflation rhetoric just won\u2019t let up. Apparently, it makes no difference that […]<\/p>\n","protected":false},"author":0,"featured_media":13602,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-13601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=13601"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13601\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/13602"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=13601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=13601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=13601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}