It’s been a brutal earnings week, Meta and Amazon have dropped 15% to 20% today but they weren’t the only ones. It’s time to review the Wall Street Cheat Sheet:
While equities have been sporadically falling, we now have key marquee names like Amazon, Meta, Apple, and Google all reporting mediocre or disappointing results resulting in the stocks dropping. A vicious domino effect will likely now form as companies that depend on the big ones start feeling the pain and with the Federal Reserve poised to raise rates next Wednesday, it will add fuel to the fire.
Once selling accelerates, panic will set in and the rest will be history.
The good news is that while everyone begins to panic, we’ve been positioning to pick up some bargains. While our expected equity buys are still a few months away we have exciting opportunities that we will start picking up soon after the Fed announces their decision next week. We are working on a write up of our planned trade and analysis and will post it soon but for those that can’t wait, the tickers are EWJ, HEWJ and TLT. In the meantime, stay tuned and stay solvent.