Wall Street Unplugged
Episode: 858February 22, 2022

A major indicator suggests stocks are about to roar higher

I just came back from Baltimore, where I recorded a new special report I’m excited to share with you… about how to make an absolute fortune from future government policies. [0:17]

The Russia-Ukraine crisis is creating tons of market volatility and uncertainty—but this will be a short-term problem for investors. [4:13]

I call out Europe for talking a big game against Russia… without any serious consequences. I also call out Germany and Great Britain for their weak actions in the conflict. [6:10]

I explain why Russia has the most leverage of any country in the world right now… why it may not invade Ukraine after all… and why Ukraine isn’t as innocent as it seems… [10:15]

While Russia-Ukraine tensions have taken center stage… the bigger risk investors should be worrying about is the Fed and how it plans to control runaway inflation. Some believe this risk is already priced in based on a leading indicator… and that stocks could rip higher from here. [14:22]

I highlight companies/sectors you should continue to avoid… while explaining how to structure your portfolio to take advantage of the volatility. [20:58]

Inside this episode:
  • Coming soon: How to cash in on future government policies [0:17]
  • Why Russia-Ukraine volatility is short-term [4:13]
  • Europe’s weak stance against Russia [6:10]
  • Russia’s leverage over corrupt Ukraine [10:15]
  • A leading indicator suggests market risk is already priced in [14:22]
  • How to take advantage of the volatility [20:58]

Wall Street Unplugged | 858

A major indicator suggests stocks are about to roar higher

Announcer: Wall Street Unplugged looks beyond the regular headlines heard on mainstream financial media to bring you unscripted interviews and breaking commentary direct from Wall Street right to you on main street.

Frank Curzio: How’s it going out there? It’s February 22nd. I’m Frank Curzio, host of the Wall Street Unplugged podcast, where I break down the headlines and tell you what’s really moving these markets. I just came back late last night from a trip to Baltimore. It’s pretty cool. I went there to tape a video, a big studio that we always use. But this video, I’m very excited about. It’s about how America is different now, in terms of crazy politics and money printing, the influence our government has over us, our economy, our lives following COVID.

Frank Curzio: But I also take a look back at history, of how this has been playing out unfolding for a very, very long time, which has led to where we are today, which is the biggest wealth gap in the history of our country. So, you could hold up a sign. I say this a lot. You could bitch on social media about everything and all the problems, the politics and whatever site you’re on. Or, you could learn how to make a fortune for yourself, your family, your kids, your kid’s kids.

Frank Curzio: That’s what life’s about. So, there’s a lot of bullshit out there and people choose to complain and go crazy. But I highlight all the bullshit and it’s not so much where you know, you’re going to take sides, if you’re a Democrat, Republican. I’m tearing everybody apart. I mean, you’re going to see it on both sides of all the bullshit that’s happened. All the garbage that’s happened. All the lies that have been fed to us.

Frank Curzio: And how the elite have made an absolute fortune off of all these policies, while hundreds of thousands of businesses have gone under. These small businesses because of policies that are still instituted in some of these cities. You’re seeing mask mandates being lifted and things like that, but yeah, it’s not just about COVID guys. It’s every single time we have an event like this, whether it’s the credit crisis and the rules are still in place, like the Patriot Act. These things, once they happen, they don’t reverse.

Frank Curzio: Once the government gets more power, it doesn’t reverse. Meaning this wealth gap is going to continue. And these policies are going to be great for people who own assets, people who own stocks, certain stocks. And showing you how to be part of this by just taking a playbook out of the elite, where any investor could actually do this. But this is a long presentation. I was really… I enjoyed it a lot, taping it, because it’s something that’s, I think could identify with a lot of people and identify why you’re pissed off. But more importantly, what you could do about it, because I think when people go… You just, when your emotions are involved, it’s tough. Everyone’s pissed off. Even I get pissed off, and I’ll rant on something here and there, political whatever. But the bottom line is, both sides are not on your side.

Frank Curzio: They don’t care. They’re going to talk on a big game. They’re going to tell you everything they’re going to do for you. Everything they’re going to help for you. But the bottom line is, they want more power, and they’ll do anything to get it, as you can see what’s going on in the country right now. But it’s up to you to structure your portfolio the right way, where you’re going to benefit the most.

Frank Curzio: And that’s how I’m teaching you, and teaching everyone how to do so. That’s going to be a big deal. I’m really excited about that. And you’ll be able to see that video presentation probably in, probably next month, late next month. We’re going to be editing it and designing it and putting it together. But again, it’s something I’m really, really excited about. I can’t wait for you guys to see it, and thanks for the team that taped it. And those guys are great there.

Frank Curzio: And actually, they’re all right, the person taping is actually listening to this and does all the background stuff for this. So, I got to give him a shout out. Otherwise, he’s going to shut us off. Anyway, but that was my trip to Baltimore, which is pretty cool. Good trip. Zipped there, zipped back. Planes both booked, Southwest, each way. Full flights. You’re seeing a lot of things return normal. You’re seeing prices go up tremendously, even ahead of spring break. It’s pretty crazy right now.

Frank Curzio: Reopened trade, which I say, we’re a little early on and we’re doing much, much better on it now. But wow, there’s still a lot of opportunity there. Now, let’s talk about what’s going on in the world, which is Russia, Ukraine. We see more escalation. This comes on top of last week’s news that Russia was not going to invade. So, what does that do? The back and forth. It creates uncertainty. We all know the markets hate uncertainty. And that’s why we’re seeing a lot of selling and a lot of unwanted selling.

Frank Curzio: It’s the highly leveraged names, I get, even if it’s Pepsi, McDonald’s, Carnival, they have three to 5% exposure. Altra has 8% to Russia. I would think more people would be smoking cigarettes during times like these. I’m not even joking. So, I don’t see how sanctions will play out there, for Altra at least, but a lot of leverage names getting crushed. But just the uncertainty overall and even of the Fed… But you know, looking at Russia and Ukraine, which is highlighted everywhere right now, you put on every channel, not just financial news channels, everything, right. They’re invading. Now, they’re only invading certain parts. Are they going to invade all Ukraine? And the back and forths.

Frank Curzio: Look, Russia and Ukraine. This is a story. I think people aren’t going to be talking about three to six months from now. It’s a short-term problem. You’re going to listen to a lot of noise, just like we heard a lot of noise when it came to China and the tariffs and trade wars. And this is crazy, when what they say and what they do are two totally different things. However, the markets react on what they say all the time. Let me give you an example.

Frank Curzio: The U.S. saying they’re going to sanction Russia. “We’re going to sanction Russia.” We do no business with Russia, imports exports, very, very little. So, I don’t know what we’re going to do to hurt Russia, right? So, Ukraine’s not NATO. So, it would be an act of war if they were in NATO and Russia invaded, because that means everyone in NATO could… It’s like declaring war on all of them. That what NATO is. NATO is like a war pact.

Frank Curzio: It’s a group. “Hey attack, we all…” It’s not based on peace, that’s based on war, right? So, that’s NATO. Now you’re looking at Europe, and Europe has to be really careful here what they say. And basically not what they say, but what they do. Right? Because they’re talking a big game right now. And again, that’s two totally different things, right? What they do and what they say. So, if they place sanctions on Russia, it could be extremely dangerous, considering Europe imports 35 to 40% of their gas supply from Russia, which almost all of it.

Frank Curzio: And listen to this, guys, almost all of that, 80% plus flows through Ukraine to get to Europe. So, how much leverage does Europe really have over stopping this? Not much, but it just goes to show you, when we look at companies and how powerful, and you know the social media and our technology revolution, where our largest tech companies have trillion dollar plus market caps.

Frank Curzio: A lot of people believe they run the world. No. Tech is powered by electricity, which is powered by natural gas, coal, oil, fossil fuels, you could throw in renewable and nuclear in there as well. But mostly fossil fuels… And people that control energy control the world. That’s why Russia is so powerful. It’s stronger today from a balancing perspective, then almost any time in its history. That’s why middle east countries relatively small are extremely powerful, right?

Frank Curzio: Looking at Germany alone, which just said it’s suspended it’s Nord Stream… The Nord Stream 2, not one, but Nord Stream 2 gas pipeline, right? So, this is a gas pipeline that goes directly from Russia into Germany. And when they say suspended, that’s what you see in the headlines, this is something that’s not even flowing anything yet. There’s nothing, there’s no gas, nothing flowing through it yet. They just completed construction in September, and they were waiting on this.

Frank Curzio: So like, well we’re going to suspend production… There’s no production coming from it. So, they’re really doing nothing, right? They’re just talking a big deal, because it’s not operational right now. I mean, it could be operational. They said they finished construction, again in September. But right now, there hasn’t been any flow. So they’re like, “Well, we’re going to suspend it right now.” Which is a little ironic if you think about it, because July, just last July, 2021, the U.S. urged, which means they told Ukraine to accept this pipeline. This agreement between Russia and Germany, because Ukraine was like, “Holy shit. You need us. 80% of this energy flows through us.” Now, you’re going under Baltic Sea, whatever, to get directly to Germany, bypassing Ukraine.

Frank Curzio: The Ukraine’s like, “Holy shit. That could be a big problem for us.” So, Biden and Merkel got together. They gave Ukraine a $50 million loan. Germany set them billion dollar fund to promote Ukraine’s transition to green energy, to compensate of the loss of those gas transit fees. So, they were promoting this, and now they’re taking it back, again, talking a big game.

Frank Curzio: But if you look at Germany just for the record and again, this has to do with all stock prices and everything. And this is why I’ll get to the bigger point of how this affects your portfolios in a minute. But Germany again, just for the record, over 60% of its energy consumption comes from oil and natural gas. So, I’m not sure Germany has that kind of leverage, which is why they’re suspending a pipeline that is not operational right now, which is, I find funny.

Frank Curzio: But the UK, I think those sanctions they just implemented are funnier. That includes limiting the amount of business it does what Russian banks, although they’re very careful not to explain what this actually means. So, nobody knows what this… Hi. What do you mean? You’re totally cutting off business to them. Is it just limiting. And then they said, “You know what else we’re going to do? We’re really going to come after you guys now. This is really going to hurt you. We’re going to freeze the assets of three Russian billionaires or the assets that are only in the UK.”

Frank Curzio: What the… I won’t curse. But what does that mean? What does it do? Say we froze the assets to the three most wealthy individuals and whatever, Buffet, Gates, Elon Musk. What is that going to do to slow us down from invading another country? Three individuals. So again, there’s a lot of BS out there and you want to read through the BS, because when all is said and done, the UK and the U.S. can’t really do much to stop Russia from taking over Ukraine, in terms of hurting them. They really can’t.

Frank Curzio: So, what’s going to happen here? Russia right now is in prime position to get whatever they want from the UK and even the U.S. to prevent a full blown invasion, whatever that’s going to be under the table. There’s always deals going on under the table, just like you show with China and the U.S. They talked a big game. We’re not going to buy any products from the U.S. We’re not going to distribute any… All this was bullshit, smoke mirrors.

Frank Curzio: And they got their deal done and everything was okay between China. And this is pre-COVID, right? We talk about 2018, ’17, ’18, ’19, but it was a good 12, 15 months where the markets are going to crash. And this is crazy. And the tariffs, and all this bullshit. When you really did the numbers and did the homework and stopped reading all the bullshit that they’re feeding you, it turned out to be pennies, pennies on the dollar, these tariffs. Which were nothing and now everything, hey, back to normal. Everything okay.

Frank Curzio: Same thing here. I don’t see Russia, and I have no idea, right? I don’t see Russia taking over all of Ukraine, but they’re in prime position to get whatever they want, if they just stop where they are right now. And again, they’re, it’s like two areas which are very pro-Russia already. Just like if you’re looking at the east part of Ukraine, it’s more European, which makes sense, right. Closer to Europe.

Frank Curzio: So, let’s see how this plays out, because for me, I think this is a short-term problem. I think it’s a story a few people to be talking about a few months from now, getting these headlines and it’s crazy and holy shit. And I love how people are comparing this to Germany and World War II. I mean, guys, come on a Soviet Union, Ukraine was part of the Soviet Union since the end of World War II to 1991, before it broke off. Okay. That whole entire time you didn’t genocide and all this stuff. Again, you had, could have started more world wars and yes, we had cold war and stuff like that.

Frank Curzio: I won’t give you all the history and whatever, but yeah, but also since 2013, if you’re looking, Russia made it very clear to Ukraine. This problem has been going on for a while. And since 2013, they said, “Don’t mess with Crimea, and don’t talk about NATO. Don’t try to go to NATO and we don’t have a problem.” And Ukraine thinking that the U.S. and the UK had their back, which they said they do, but they really don’t. They can’t do anything to Russia. They talked a big game, they poked a big bear, and now they’re paying for it, which is dangerous.

Frank Curzio: I’m not saying whether it’s right or wrong, whether you agree with Russia or Ukraine. I’m just telling you how it is. So, Russia right now is in prime position to get whatever they want. And NATO is going to get a lot of shit to not… And I don’t think it even makes sense, for them to take over all of Ukraine. But let’s see how this plays out. And I think it’s a short-term problem. And again, we’re going to tear apart Russia, and we should tear apart Russia, and I had a rant about that.

Frank Curzio: But guys, Ukraine. Ukraine is, if you’re looking at the corruption index and there’s a firm that tracked this for over 25 years, non-biased, non-political, nonprofit. They’re ranked as one of the most corrupt nations in the world, 122 out of 180, kind of like El Salvador. And there’s a list of countries I saw. I was like, wow, because almost every single election that they’ve had, there has been fraudulent, a coup. It’s been crazy there. And even now, if you’re looking at the polls, that’s the biggest thing, the corruption that takes place in Ukraine. It’s a very corrupt place, that’s not democratic.

Frank Curzio: But they’re not some innocent place here, where they’re like, wow, you created these bunch of… No, no, absolutely not. I don’t think it was a good idea to start arresting wealthy Russian billionaires in Ukraine and shut down TV program and stuff like that. I mean, really you’re not in a position to really do that with Russia right next to you going, “Hey, don’t F with us, or this is what’s going to happen.” The bottom line is, they’re in perfect position right now. I don’t think this is going to be a big story. I don’t know. I would play the odds here and the odds are, it’s not going to be a big story. But Russia would be very smart to just say, “Hey, okay, this is what we’re going to get under the table and we’re not going to invade. And we’re perfectly fine.”

Frank Curzio: We’ll see what happens. I think what you really should be concerned about is the Fed. And I know that everybody is talking about this. So, it usually means it’s factored in, but I’m not sure, because the Fed’s about to begin on one of its biggest tightening cycles in over a decade. And it’s going to be the first time in their history, it’s going to do this and have a tightening cycle while all the major indices, you’re looking at the Dow and S&P and NASDAQ, the Russell 2000, are all trading below their 200 day trend lines. That’s never happened in the world, right?

Frank Curzio: It’s usually the opposite. When shit hits the fan, you’re lowering your rates. Well, shit’s hitting the fan right now, we need assistance, and the Fed isn’t even doing anything yet. They didn’t even do anything yet, which is crazy. March is around the corner, expect 50 basis point hikes. I’d be surprised if it’s not more than that. The mark will probably go up on that.

Frank Curzio: And some believe we’re going to see four rate hikes or others are calling for six or seven now. And some experts, many that I know that I’ve talked to believe that there’s no way. There’s absolutely no way the Fed is going to raise rates five, six times or more, while the market is crashing. And to that I say, the Fed may not have a choice. They might not have a choice if inflation doesn’t slow down. For the last year, pounding the table on this, saying money’s being directly handed to people and I’m not… Economists a brilliant people, but you’re looking at models.

Frank Curzio: And I can tell you, every investment book right now, every investment book that you read right now, just take it and throw it in the garbage. Seriously, because we’re in unprecedented times. This shit never happened before. You can’t look at past charts or past Fed movements, or where the S&P was trading, and how it’s trading now, last time this happened. Throw it out the window. You threw that out the window when you ejected 10 and a half trillion dollars into this market.

Frank Curzio: And that was okay, because you chose lockdowns and people in trouble. And I get it. But that money was not given to banks to shore up the system like it was in 2008. It was handed directly to people in businesses, which is going to filter immediately into the economy.

Frank Curzio: Now, here is why this is crazy and why it’s dangerous to be behind the curve, where we had earnings, home prices, net household wealth, used car prices, all assets basically outside of gold of course, all hit record highs this time last year. Not now, this time last year. They hit record highs. But the Fed, instead of saying, “Okay, things are back to normal. We weathered COVID. We still got some time to go, but let’s start razor rates a little, let’s start tapering a little.” What did they do? They did the opposite. This is a year ago.

Frank Curzio: They continue to buy treasuries and keep rates super low for another 12 months. While we saw trillions more being injected into the system, which has led what? It led to supply chain concerns, it’s led to still right now, you try to go to restaurants or bars and you can see, these people are still not working and they’re getting paid more to stay home than they were to work, which you can’t blame them.

Frank Curzio: Really, if someone paid you right now more money to not work and stay home, would you do it? You can’t blame them. But this is what happens, when you keep injecting money into the system when you’re not supposed to. Now you’re behind the curve, because inflation is the biggest problem. It’s something the Fed can’t throw money at to control. It’s not like something went out of business or the markets are getting crushed like ion 2008 and you’re funding the banks, surging up the system, bailing out everybody. You got to do the exact opposite. You don’t have a choice. So, people are saying that, “Oh, there’s no way. I can’t see the Fed raising rates that many times. No way with that.”

Frank Curzio: They might not have a choice. Have you seen the latest data? We were told for over nine months now that inflation was transitory, 12 months. We’re on 12 months of the Fed, the smartest people in the room saying that this is going to be transitory, because they looked back in the past and said, “This is what happens normally, dating back to 50 years, a hundred years, whatever.” But this isn’t normal, all this money injected into the system. Now, you’re backed into a corner, but look at the latest data again, transitory, supposed to be transitory.

Frank Curzio: And they took away that in November. That’s fine. And that’s when we saw the markets really go crazy and come down, and be extremely volatile since then, even to today. But now, even now look at the latest data. Look at the CPI, retail sales, PPI, producer’s price index. Look at home prices, which came out today showing 18% year over year increase, 18%. If you own a house, good for you. If you don’t, you’re being left out. Now you’re paying rents that are just going up through the roof, record highs.

Frank Curzio: But when you look at the data, inflation is still not slowing. We’re waiting for it, but it’s still not slowing. I hope it does slow. That’s going to slow the pace of the tightening and maybe that happens, but we’re waiting for it to slow, but it’s not. I don’t see it slow at least over the next quarter. If you think I’m crazy, try booking a flight right now to anywhere over the next month or two. Good luck. Wait until you see how much that costs. Wait until you see how much the hotel costs. All the fees they’re going to charge you on that.

Frank Curzio: It’s insanely expensive to travel, but people are dying to get out, because there’s just… I’m in Florida. We were lucky. No crazy mask mandates. Our kids were having fun. Going back to school. Businesses remained open. Everybody was fine. Our statistics turned out to be better than most states, which had masks on every single second of the day and forced you to get the vaccine to live your normal life, which is going indoors to your favorite restaurant in some cities. Nope. You have to get a vaccine no matter what.

Frank Curzio: Even if you are 25 years old and in great shape, no underlying conditions. Nope. Take away your freedom. Can’t do certain things in certain cities. You can’t go indoors. You couldn’t see the Superbowl. You can’t do anything, unless you show your vaccine card. Not too sure if you had to show the vaccine card in LA though for the super bowl.

Frank Curzio: But I do know they had to wear masks, which is insane for the Super Bowl, paying $8,000 to wear masks. Anyway, when you’re looking at inflation here, guys, we need it to slow, and it’s probably not going to slow for the next few months. But once it does, that’s going to be a boost to the market. With that said… Hey, with that said, what are we seeing right now? A lot of highly leveraged names, getting destroyed. Draft Kings, meme, stocks, your EV names, Virgin Galactic.

Frank Curzio: I love Chamath. He’s so smart. Gets into that stock. “Space travel’s going to be the biggest thing.” When the stock’s at 10, 12, 14, 16, promoting the out of that stock going all the way, whatever it went to 34, whatever it went to, then he cashed out along with Virgin Galactic, right? That the CEO cashed out good for him. Hundreds of millions of dollars.

Frank Curzio: And now he decided to leave the board. When the stock was like, you know, nine, eight. I thought you loved it. Didn’t you love it like two years ago at like 13 to 15, you told everybody to buy it, and you got out at higher price. And now, you’re out of that company and he’s like, “I’m searching for other ideas.” Good for you. You made your money. Who lost money? You. You guys lost money, right? Nobody pays attention to that. Nobody cares.

Frank Curzio: As long as a retail investor’s buying what they’re selling, they’ll sell it to you. And like I say, they’ll take every single penny. If you’re lying there on the street with a sock on, they’ll take the sock off of you and leave. That’s Wall Street. It’s perfect example. But those are names that are getting crushed, the SPAC names.

Frank Curzio: That’s just… So, you can see you staying away from those names. They’re still, I mean, Virgin Galactic is three million in sales and still trading at a two billion valuation. It was like 12, 13 billion. Two billion valuation, three million in sales. It’s pretty crazy, but there are a lot of small caps, even large cap names. Insanely cheap valuations right now have strong balance sheets, they’re buying back stock, raising dividends, expect to see strong earnings growth, at least over the next 12 to 18 months. And earnings are expected to be strong over the next couple quarters.

Frank Curzio: So, I’m seeing lots of exciting ideas, even though it’s a tough market. With that said, with so much money coming out of the market and leverages at its lowest level since June, 2020. Remember that date, I’m going to come back to that. But we could see a little more downside in a lot of these high quality names, that you think are buys in the weeks and months ahead. They could get a little cheaper.

Frank Curzio: So, if you’re looking at one of your favorite names, you’re going to see a lot of these names make their way into our portfolios, Curzio Research Advisory, Curzio Venture Opportunities, go in these positions small. Take a half position, take a third position, build it over time. Use that volatility in your favor, because if you’re looking 12, 18 months from now, you have a good shot. These things are going to be a lot, lot higher.

Frank Curzio: Why? Because when leverage comes out of the market, which you’re seeing right now, right? So, leverage coming out of the market, and you’re seeing short positions, more people showing the market than ever. It’s usually a bullish sign or contrarian indicator, because the lowest leverage since June, 2020, that’s on record right now. We’re seeing the lowest leverage since June, 2020. Now, think about that date for a minute. What happened?

Frank Curzio: COVID just crashed in March. Then, yet, April, May started coming back. In June, there was shorting like crazy. And it was almost the greatest buying opportunity in the past decade, since the credit crisis. If you bought anything, you bought almost any name in June outside of some of the SPACs, because a lot of them are trading below that $10 break point, but almost any stock you bought since June. I mean, you’re up a ton on, even now, even after the sell off.

Frank Curzio: It’s interesting. Right? So now, we’re seeing the lowest leverage since that point, meaning that you’re looking at hedge funds and the big money positioned on one side, which is a contrarian indicator. And if they’re super, super bullish, what are they going to do? Well, they’re going to sell. They’re going to eventually sell, sell, sell, sell, sell, and that can result a lot of money coming out of the market. Now, you’re seeing them taking bigger short positions, leverage coming out of the market.

Frank Curzio: Now, they’re on one side. So, you just need a little bit of a positive catalyst, result to Russia and Ukraine. The Fed’s not raising rates as aggressive, inflation slowing. And you’re going to see this market really take off, and not all names are going to take off, but the names with strong balance sheets. I mean, you’re looking at that buybacks. We’re going to see probably record buybacks right now.

Frank Curzio: We’re seeing companies raise their dividend. We’re seeing companies beat and raise this earning season and wash their stock for five, 10% and are still trading 20, 25% off their highs. These are the stocks you want to pay attention to. It’s not you. I know your portfolios are down. Most are down. The last three, four months have been crazy, but put it in perspective, because while they’re down, the three years before this, we saw the S&P 500 go up 30%, 20% and 27% around those numbers annually, which is insane for a market that usually goes up 8% every year.

Frank Curzio: Just like home prices, up 8%. Usually, home prices go up one to 2% annually on average, if you’re dating back all the way, past 50 years. So, when you’re going up 18%, could they go up 18% this year? Absolutely. But usually you’re going to see that revert back to the mean, which we’re seeing even in stocks.

Frank Curzio: So, people are like, “Oh, I’m getting crushed and getting killed.” And maybe you got more aggressive this year or late last year. So, everything was going up and everybody’s talking about how much money they’re making. You should have did pretty well the three years before, but put in perspective, because there’s a lot of stocks, semiconductors, energy, the reopen trade.

Frank Curzio: I mean these stocks are still trading at levels that are 30, 40% off their 2019 pre-COVID highs, yet their earnings are going to be higher than they were back then. Think about that. And demand… And they have pricing power and everything’s opening up now. Even international markets are opening up. I covered that with Daniel last week. There’s a lot of pockets that make sense. I do see positives. Our portfolios are positioned well, but again, buy those companies that have strong balance sheets, expected to grow earnings much faster than overall market, because that list used to be small since a lot of those names with those qualities was super expensive.

Frank Curzio: But that list is a lot bigger now. A lot of these names are down 25% plus over the past two, three months, even though they reported great earnings, they’re about to buy back a shit load to their stock, because have great, great balance sheets. They’re in the right growth areas. And if you’re looking at EVs, if you’re looking at whatever you look at, you look at certain markets that are growing tremendously, tremendously within technology and chip makers are going to benefit a ton. I don’t know if I’d go with Invidia, the best in breed, but it’s super, super, super expensive. But you know, Skyworks might be a name to take a look at, that pull back.

Frank Curzio: Some of these names have pulled back and they’re in the right growth markets. They have strong earnings. They’re about to buy back their stock. And we’re looking at the macro, right, thousand foot view. Most hedge funds of big money are on the side of, “Hey, things are going to get a lot worse.” And usually, that’s the time when things, when it’s the right time to buy stocks and things get better. Let’s see how that plays out. I’d start picking away. You’re going to see a lot of names make their way into the portfolio. But guys, that’s really what’s going on right now.

Frank Curzio: I just wanted to provide that with you in the monologue. Questions and comments. I am always here for you. We’re Going to dig more into this with Daniel tomorrow and Thursday as well. So, send in your questions, I like taking questions. It’s not just for Frankly Speaking, which is our Friday podcast, which I only… That’s not on iTunes or our YouTube Curzio Research page. That is strictly for subscribers, paying subscribers, no matter what service you’re a subscriber to, you automatically get that podcast, which is basically a Q&A, and everyone sending in questions.

Frank Curzio: But during this time, when you’re seeing a lot of stocks, extremely volatile, getting lots of questions, guys, I’m here for you, frank@curzioresearch.com. I’ll take some more question the rest of this week. Start sending them in, and I’ll help you as much as I can. So, that’s the scoop. Again, questions, comments, I’m here for you, frank@curzioresearch.com. Really appreciate all your support. I’ll see you guys tomorrow. Take care.

Announcer: Wall Street Unplugged is produced by Curzio Research, one of the most respected financial media companies in the industry. The information presented on Wall Street Unplugged is the opinion of its host and guests. You should not base your investment decision solely on this broadcast. Remember, it’s your money and your responsibility.

Frank Curzio
Frank Curzio, founder and CEO of Curzio Research, is one of America’s most respected stock experts. His research is regularly featured on media outlets like CNBC’s Kudlow Report, The Call, CNN Radio, ABC News, and Fox Business News. His Wall Street Unplugged podcast—ranked the No. 1 “most listened-to” financial podcast on iTunes—has been downloaded over 12 million times.

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