Wall Street Unplugged
Episode: 903June 7, 2022

How to spot the best stocks for the current market

best stocks

I just got back from my daughter’s basketball tournament in Orlando… and it was eye-opening to see how costs are rising.

Speaking of rising prices, the Fed is finally serious about fighting inflation. I highlight what businesses must do to stay afloat in this environment… why supply chain constraints aren’t going away anytime soon… and which industries to avoid.

I share the qualities you should look for when buying stocks… a couple of names that belong on your radar… and some positive signs that the market is near a bottom.

I see huge upside potential for stocks right now. That’s why I added three new positions to the Curzio Venture Opportunities portfolio last week… and why I’ll be releasing two new recommendations to Curzio Research Advisory members tomorrow.

Inside this episode:
  • Consumers are spending less money [0:23]
  • What businesses must do to survive [8:00]
  • Avoid these supply chain-sensitive industries [11:25]
  • Critical qualities to look for when buying stocks [20:00]
  • Signs we’re near a market bottom [24:00]
Transcript

Wall Street Unplugged | 903

How to spot the best stocks for the current market

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: What’s going on out there? It’s Tuesday, June 7th. I’m Frank Curzio, host of the Wall Street Unplugged podcast, where I break down headlines and tell you what’s really moving these markets.

Frank Curzio: I just came back from Orlando, had a basketball tournament this weekend. You know, a lot could be said of the economy by just watching the things around you, especially this area, which is one of the biggest discretionary spending areas on the planet. People have going to vacation in Orlando, right? Disney World, Universal, and Orlando’s about two and a half hours from my house. So, it cost me easily over a hundred dollars to fill up my car each way, which is insane. The average price, this is yesterday to record high of gas is $4.89. So, approaching $5 on average, more than double what it was a year ago.

Frank Curzio: And it’s been pretty crazy on my end. Let me just put it together. This incredible deal with the metaverse, purchasing five million virtual real estate in TCG world, doing a capital raise. It’s the largest virtual real estate purchase, although I’m starting to see more and more large real estate purchases go through. So, I reckon it’s going to hold like I said, just for a couple weeks most likely, just because I’m in this space now and talking to so many people and how big it’s getting right. Getting involved in the right metaverse is key.

Frank Curzio: But being so crazy and nuts, I wanted to spend an extra day in Orlando, my family. So, I took my kids to a water park, which is Aquatica. They have about three or four main ones there. So this was Monday, this was yesterday. And surprisingly, it wasn’t that crowded. The streets, the stores, restaurants, also Orlando were not that crowded the whole weekend either. I’m not sure is that’s because of the lack of international travel. I mean, I’ve been going to these parks easily for 12 years, four, five times a year because, again, it’s really, really close, easy for us to get there. So, I’ve been living in Florida, and the demand from international. I would say the parks, usually at least 50% of people that you’ll see that aren’t speaking English, and it’s cool. Everybody’s taking their families there, but it’s a big international presence there. Very, very big. And it’s not really there right now.

Frank Curzio: And you look at energy price at record highs, which is pushing flights up enormously, and flights are now record highs. So, it cost of flies a lot more. Maybe that’s it. I mean, you could book flights a little bit early, save a little, but it’s not easy. It’s not easy, especially if you’re traveling internationally. I’ve traveled internationally twice now. I’m going away again internationally pretty soon, but it’s not easy because there’s different COVID policies, and they’re pretty strict in some places and others, you know, the US have eased for the most part, but not really Europe and Asia. They’ve eased, but not to the point where it makes it easy.

Frank Curzio: Yes, you could buy your flight early and purchase insurance, but family is still concerned with what happens when you go on vacation, which is really expensive, and I think it’s like close to 10 grand now just to go to Disney, 10 grand for a family to go to Disney, a family of four. Think about if you have five, six family members and it’s insane, but imagine booking that internationally. And if you get COVID, that’s one of the things I worry about, it could be a mild case and not even that bad or one of your kids get it? Now you’re forced to stay here for how much longer? Depending on the policy of going back, it could be another week could be 10 days or whatever.

Frank Curzio: So, you get that negative test. That adds a whole other area of uncertainty. That’s why you’ve seen, even for the US, you’re not seeing a lot of people travel outside the US because of that. If you get COVID someplace else, you’re maybe you’re in quarantine, depend the other area it’s in. It could be a real pain in the ass. So, I could see that. But you definitely see it in Orlando. You definitely see it in Orlando, with shop stores not as crowded as it used to be. And this is peak season. This is peak season.

Frank Curzio: But more importantly, what does that mean for these businesses? And again, I want you to learn to keep your eyes open. That’s why I kind of wish I taught economics because they make it so boring with bell curves and all this. But economics is just fascinating to me because you could just look around… It’s everything around you. You know, what kind of cars people are buying, your neighbors? Are they building houses? Are they fixing up their homes? Are they getting fire? Your friends’ family. This all affected into how much you pay for things. Apparel, milk, groceries, food, energy. Again, this is what the economy’s all about. And you could see it. You have a significant advantage over people who work at the Fed.

Frank Curzio: One is they’re not in tune with the average consumer, right? Scholars, and reading books, and this is the way it’s supposed to be. Like I said, throw away every single investment book you ever read because it’s meaningless because this time is different. I know people say, “Well it’s not different history-” it’s different. Interest rates weren’t zero for 12 straight years, basically. You didn’t throw money at every single problem. No. In 2000 when the market crashed, you didn’t see with technology stops crash. It took three years to get back on its footing. You wiped out a lot of the bullshit and then you see the real tech boom actually start. All survivors are massive companies today.

Frank Curzio: That usually happens in business. Get a trend, people get in it, they make a lot of money. Then all of a sudden, you got the secondary, third players, four players come in, all bullshit. Scams happen, all this garbage. Then you see a complete wipe out. The survivors usually are the ones that have massive market caps, start hiring tens of thousands of people. We see that time and time again. Here, we’re not allowed to let any company fail, and we’re not allowed to have a recession ever.

Frank Curzio: That’s what happened over the past 12 years. No recessions. We’re not allowed to have a recession ever, ever. Can’t happen anymore. It’s against the rules. Why? Because the Fed is a political organization, and nobody wants a recession under their watch because most people are going to vote with their wallets. There’s a different world now blow up in their face. That’s why the Fed didn’t see.

Frank Curzio: You’re able to see this stuff a lot quicker than the Fed. That a person listened to this that didn’t see inflation coming 18 months ago, at least. And the Fed’s like, it’s got to be transitory. It’s got to be low. It tasted transitory, when it was just at 2%. We’re at 8.5%. You know how big of a difference that is when it comes to economics? This isn’t a stock that overshot. I mean, this is the whole economy. The inflation is insane. It’s significant. They didn’t see it. The trillions of dollars printed COVID everything’s going to be okay, we’re going to lock out everything. Just hand checks and loans to everyone will be fine. Trillions. It didn’t see it coming, but you could have saw it coming. And you did see it coming.

Frank Curzio: So, what happens is, you take the punch roll away, and now inflation’s the worst thing in the world. one thing the Fed can’t control by throwing money at it. And that’s why you’ve seen all this confusion, stocks getting nailed, good home prices continue to go higher, which is crazy. People think that the market at a crash inventory level, still near record lows, not just hardly any inventory. So, rates are going higher, but prices are going higher as well, which you normally don’t see. But that’s what happens when people looking to buy houses, and yes, the band is slowing. Now that you have mortgage rates about five and half percent from 3% what? Nine months ago. But still, they’re holding that pricing power because not a lot of inventory.

Frank Curzio: So, you’ve seen all these crazy things going on in the market that you’ve never seen before. You’re like, holy. My company just pointed two straight quarters of solid earnings, and it’s down 25, 30%. A lot of stuff doesn’t make sense. This is what happens when you see leveraging in the marketplace.

Frank Curzio: Now getting back to economics and seeing what’s around you to determine how you could buy or sell stocks within your portfolio and take advantage of things, and getting back to the Orlando example with Aquatica… But you’re looking at companies, when you’re looking at international or they’re busy, you’re seeing slower traffic. How do they make up the difference? They have to raise prices and raise prices significantly. That’s what you’re seeing at these parks. Aquatica, they did have a sale for tickets, which I was able to buy them 50% off, they’re like this day only, and then it ends the more they say, which I was very surprised… Bought them, therefore 50% off because it’s peak season.

Frank Curzio: Usually you don’t have to do that, but there’s a reason why they did that in Aquatica. Because once we got in that’s when they us. Sorry to say it that way, but it’s true. Small bottle of soda was $5. Small water bottle was $3. Who wanted a bud light and wanted to have a couple of beers? $11 for bottle of bud light, ate with my family. We got three burgers and a fried fish sandwich, with three orders of fries and four fountain drinks. Should have cost us 50, $60 maybe. It was $130. $130, they banged us out. Later on, we got ices, where they give you a cup of crushed ice. Get to put your own flavor on it like strawberry, blueberry, passion fruit. It’s a cup of ice. Crushed ice. They charged $7. Probably cost them 50 cents for that. $7 each. If you forget the burgers, I was thinking about getting a pizza, but the pie was $26 for pizza, $26.

Frank Curzio: So, the prices to eat and drink are insane. And a strategy for Aquatica is, hey, you know what? Let’s just get these people in the park, and we own them. Give them those discounted prices, that’s fine. We’ll make up the difference. How? $30 a parking. And they give you a chance to upgrade to so many different things. Food packages, which is an extra 30, $35 each, while I was like, ah, I don’t know if I’ll get the food package. I should have got the food packages, at least you could have sodas and things like that for the whole day. Get cabanas, which you really didn’t need. You could hang with the dolphins, fast, passes all these upgrades. But once you’re in the park, you have to eat their food, drink their drinks, which again, you’re going to get banged out for. And interesting enough, the park was only open from 10 to six.

Frank Curzio: And why only 6:00 PM? Volcano Bay down the block is open until 8:00 PM. It is summer. It gets dark, what? After eight o’clock. But 6:00 PM means you’re going to save a lot of money compared to staying open until 8:00 PM. I don’t know how many people are going to eat dinner then. They’re probably going to wait to leave to eat dinner to have a much better meal. So, I don’t know how much money people are going to spend between six and eight o’clock. They’re probably just going to go on the water rides, but now, you don’t have to pay employees, pay the lifeguards, electricity, cut those expenses. Things right? That it’s significant.

Frank Curzio: But my question is, how much longer are people going to pay these prices? Now, how much longer? And he says, they’re paying a higher costs for everything, including your food, gas, and energy which means you’re going to have less money to spend on discretionary items. Which is what Orlando is all about.

Frank Curzio: But I’m bringing this up because the news from today from Target. Target reported terrible earnings on May 10th. 50% drop in profits for Q1, big surprise stock got hit 25% plus and came out of nowhere. Along with Walmart reporting a huge miss as well. Then today, Target warned again, Q2 margins are going to fall sharply, as they have tons of inventory they need to get rid of. And I want you to think about this and why this is significant. So, we have these massive supply chain concerns, which still exist now because China decided to close everything down because of this latest version of COVID, which is basically a mild cold. And if you’re vaccinated, you should be perfectly fine. Most people are. Not saying everybody. So, going to stay protected of the people who have underlying conditions and are over six years old. But, really it was a non-factor for people to have COVID right now, at least its last strand. But massive supply chain concerns and similar to everyone else, right? With target. But target bought a ton of stuff to stock at shelves, as demand was soaring.

Frank Curzio: Now demand is slowing. People are cutting back, closing their wallets and target has to sell inventory at steep discounts, which is going to hurt their margins. So, stocks are getting hit today. It fell from 220 to 145-ish on May 18th, when they warned, then it rebounded over the next week or so to about 168, almost hit 170, nice rebound. But now, it’s falling again back to that level. It was down seven, 8%. I’m looking now, it’s down about 3.5%. Modest has anticipated, but Target said, look, this is now we’re going to get rid of this inventory. We have to get rid of it right away, sell it a discount, but we’re going to maintain our margins for the full year and everything should get back to normal. Whether you believe that or not, it’s up to you, but you’re seeing the stock rebound a little bit. So, a lot of the hit was already taken. Which is a good sign in an overall market, it’s not the worst thing you want. Again, you’re not getting hit as much.

Frank Curzio: Target was down 70% to open today. Now, it’s about down 3%. I don’t know where it’s going to close, but you’re seeing buyers come in at this level. And there’s a reason why. I’m going to bring that up in a minute. But a lot could be set of Target and what you’re seeing around you, especially in Orlando, as this relates to the overall economy.

Frank Curzio: So first, what have we been seeing? Companies have been doing everything they can over the past eight to 10 months to drastically increased inventory. Because they had so much trouble getting their items and massive, massive, massive demand across the board. So, people have more money than ever because they were handed free checks and COVID and trillions of dollars. They have all this money, they want to spend as much as they can and go crazy. Everybody.

Frank Curzio: You know the guy next door, you know what they do for a living. And they have two Mercedes in their driveway. And you’re like, what the what’s going on here? You’re seeing it everywhere. The amount of money that people are spending. That’s all cool where you have low inflation, the Fed’s handing you checks. But now, you have higher inflation and everyone’s costs are going up, especially with food and energy. To Target… What did target do Walmart. They kind of got it right in all this craziness supply chain concerns, Walmart target got it right. They able to figure it out, load their shells with everything possible, right? Increase inventory dramatically, which is fine. Right?

Frank Curzio: Demand was soaring. But now, what happens when you say, especially discretionary. I mean, not all items are coming down, but in certain categories, they are. But now, they’re stuck with excess inventory when demand is crashing, which means they have to lower prices considerably to unload this inventory, or why Target just lowest its margins. So the question is, you could bitch about Target and say, wow, I own Target and Walmart and that’s the story. You always want to look at the stories and see how it’s going to impact everything else you’re owning in your portfolio. And how do you play this?

Frank Curzio: That’s why I say when people read the Wall Street Journal, they don’t just read the actual story of it, if it’s Exxon or if it’s… What if… You want to look. Because when you see these stories, they impact dozens and sometimes hundreds of companies. So, how do you play this? So, some of you just look at Target and say, I read a story on Target.

Frank Curzio: No there’s much, much bigger underlying trend taking place here. You say, how do I play this? We target Walmart to the biggest retails. But first, if you want to look at the bad news, now you can protect yourself. You see Target’s not getting hit again. Even though they kept their margin guidance the second half of the year. Like, see Walmart do the same thing, lowers margins at least over the next few months to sell their inventory as well, and both of these companies have exposure to groceries, which is on fire right now. They have pricing power in groceries, because they’re still cheaper than going out to eat. So, they maintain their pricing power. Walmart does have retail gas stations as well. The limited damage of… With Target, seeing what they say, a billion dollars extra in energy cost, which is insane. But when you have those retail gas stations, it helps a lot for Walmart.

Frank Curzio: These are areas where prices will continue to rise, especially through the summer. But these guys are going to aggressively cut prices on clothing, home furnishing beauty products. And when you look at bigger picture, it’s going to impact so many different industries. If you’re in Nike, Under Armour, Gap, American Eagle, clothing retailers, look out. Then you started everything in their power to increase inventory, to supply chains are strained and they’re just figuring it out. Now, especially over the past few months, getting all this inventory in and stuff that they pay for already. And holy… Now, demand’s falling off a cliff. So, they got to sell these items at a steep discount. Technically, this could be said with autos and semiconductors. The chip companies are drastically building these plants like crazy and going all in.

Frank Curzio: I get it. But all of a sudden, it’s like a light switch. And we saw what Walmart, Target, who didn’t even warn. Target is warning for next quarter, which is still two half months away. They’re warning. That’s what big companies usually do when they’re going to miss their estimates. Notice how Target and Walmart didn’t warn before their quarter, where they poured on, what was it, the 17th and the 18th. Think back to back. It happened so quickly. It was insane.

Frank Curzio: But think about all these companies that increased their inventory because they had such supply chain concerns, and they figured out, and said, “Okay, just full demand. We’ll take everything you got right now.” All this stuff’s getting delivered at a time where prices are coming down. You think everybody’s going to buy an EV vehicle? Elon Musk just came out and said, they’re going to be what? 20, 30% more to the costs.

Frank Curzio: You know how much these vehicles cost? It’s super expensive. Super expensive to the point where it’s not going to make up so much of the difference in gas prices maybe now, where prices still going higher and higher, but everybody was buying an EV. Everybody has these orders and you to put, what is it? A hundred bucks down, 200 bucks down, maybe a little bit more?

Frank Curzio: You think all those orders are going to get filled now? No. Not only that the order companies really were talking up like, we’re going to be the biggest EV maker in the world. Ford, GM, Honda. You look at all across world Hyundai. All these companies, all these companies, Volkswagen, Solar… All of them. They’re basically telling you that every car that we have as a gas guzzler is kind right now, and we’re going to see massive demand and be the biggest EV players in the world. Which means you’re not selling cars right now because everyone’s waiting for your EVs, which is supposed to come out 18 months ago, and this is still not out. It’s still not out.

Frank Curzio: Maybe you see one or two driving here or there. I’m getting some stories from subscribers saying, hey, I saw EV different companies, not many hardly any.

Frank Curzio: And what do you do now? You got to be careful when you create the new version of your product, whether it’s the first iPhone, the first iPad, whatever. When you come out the next generation you can’t really talk crap about the previous generation. You’re not going to sell anything. Because now, you have delays getting out your new product and holy… Now, you’re not selling anything. It’s a reason why you’re seeing so many, lots that are empty still in autos. But 4GM look out, Skyworks, Nvidia. Look out.

Frank Curzio: Now some of these companies, when you look at Broadcom, trading at a 15 forward PE great balance sheet, which you can use to buy back their stock, also look at the yield at 3%, and they say, okay, this is stock. It’s gotten hit, not as much as Skyworks has gotten hit. Nvidia has gotten hit, but it should place a little bit of a floor there.

Frank Curzio: Well maybe, we’ll see a little bit of downturn. Maybe they worn, but that’s a nice yield. 3% buy back their stock. 15 PE? I mean, Skyworks is a 12 PE, great balance sheet. 2.1% yield target at a 2.5% yield now. 13 times forward earnings. You can see why it’s coming back. You see Target falling another 20% from here. Do you think it’s going to go under 11 times forward earnings and pay a 3% yield? These guys got to get it right. They got it right during COVID. They got it right the whole entire time, except for this quarter. And I hear Cramer on TV, a couple other people here.

Frank Curzio: Targets only down 1% now, but they’re ripping like the target. See, it’s not limited to Target. Just like it wasn’t limited to Walmart. And you want to beat these guys up? Wait, you’re going to see it everywhere. So at GAP as well, you’re going to see so many of these companies warn, and it just makes sense, right? You have all this demand and you can’t sell anything, which is insane because supply chain issues. So, you’re loading up and saying, okay, we got to figure this out. No matter what the cost is, you spend a fortune to direct it a certain area where, hey, okay, maybe we’re not getting out of China, we’re getting out of another area. And now, you’re getting flooded with this inventory, and man, it’s crashing out of nowhere, and look how fast it happened.

Frank Curzio: It makes sense, right? That’s what we’re seeing. But those stocks with high yields that have already gotten hit that are cheap, strong balance sheets have much less downside. These are the names you should start picking away at than these companies trade expensive valuations and don’t pay dividends. Chipotle, 40 times forward earnings, no dividend. Nvidia, 35 times forward earnings, no dividend.

Frank Curzio: You want to own these? I know Nvidia know them very, very well. And I could tell you one of the biggest selling points was when you didn’t get the deal done with arm holdings. And that was huge for them. That would’ve created the ultimate monopoly. It was just no way I saw that deal going through. If you’re really look at the details, it was very difficult. Seeing that deal going through. The amount of lobbying from their competitors, going to the politicians, it was almost impossible that deal get through. And the stock ramped up still went higher. Because after that deal, it increased what 40, 50%. it took a while, and then once that deal fell through, stocks still started going higher. But now, you see it get nailed, and it got nailed a lot more than some of the other semis. But still you don’t have that dividend. And if he does have a good balance sheet, Joe Chipotle, but you know, 40 times forward earnings in this market, pretty crazy.

Frank Curzio: So be careful of those names, even though they’re down 25% plus from their highs, it’s a different market. All it comes to strong balance sheets, but have dividends that have gotten nailed, but are trading in cheap valuations. Joe Chipotle is not Nvidia. Those are dangerous.

Frank Curzio: If you pick it away again, buying those names have gotten nailed already, but have strong balance sheets paid dividends along with being cheap. That’s a good formula right now. But the good news, the silver lining here, which is very, very big. Can we see stocks lowering margins coming down, we’re going to see more companies warning. I get it. Your stocks are going to hit a little bit, but the civil lining here, Target, Walmart, lowering prices. Think about that for a minute. That may be the first deflationary event I’ve seen in 24 months.

Frank Curzio: It’s happening, not just these small, tiny companies. These are two large retails in America, in a world. Access to how many consumers are being forced to lower prices because it’s seeing changes in the consumer. That’s good news. It tells us that inflation is definitely moderating. It doesn’t mean it’s going to come down significantly. We need to see moderation. We still haven’t seen moderation. We haven’t seen the top of inflation and slowly coming down. We need to see that. We see it come down a lot more from here, but first, let’s see it top out.

Frank Curzio: But in order for inflation to moderate, we must see margins or many companies get hit. That means that they’re losing pricing power. They’re lowering prices. That’s good. And if that’s the case, what does it mean for the Fed? Doesn’t have to be as aggressive when raising rates, maybe they get away with raising Fed funds rate to 2%, two and a quarter percent from, what is it? 1% now. Instead of going 2.75, 3%. That’s significant. That means just two more rate hikes of 50 basis points compared to four, five, six, or what we’re seeing from so many firms.

Frank Curzio: Again, hopefully, I’m not losing you here with a lot of this is what’s going on with the market. You want the Fed to slow, and they can’t slow unless inflation moderates. And we’re finally seeing that. It’s not going to happen right away, but over the next few months, yes, it could happen. Because the biggest risk to equity to markets to your portfolio is inflation. The one thing that Fed can’t throw money at to control. I’m not worried about oil, it’s cyclical. Yes, it’s going higher and higher, and you see it in record prices. Again, they go higher and higher and they go low, low, and they overshoot, okay. Eventually, it’s going to come down, demand wins, which it will because people are going to drive less with gasoline prices surging over $5 in most areas. Holy shit, $5 for gallon gas, isn’t that insane?

Frank Curzio: Business demand’s going to slow, meaning less energy usage of factories and plants. You see it happen not right away, but inflation data, which is what the Fed is looking at. And they look at the core, which is excludes food energy. And the months ahead is likely going to show moderation. And food and energy is going to take a little longer, but that’s important as we see the light at the end of the tunnel, which we haven’t seen and that’s the uncertainty it creates. We talk of three, four months now that, hey, we’re going to see it moderate, we’re going to see it moderate, we’re going to see it moderate. Going hiring and hiring and hiring and higher for the last four months. So, we’ve seen this massive moves in stocks. The volatility’s insane. Nothing makes sense. No leveraging, funds getting crushed.

Frank Curzio: It’s very hard to put your money to work if you really don’t know what’s going on or have any clarity on anything. But we see inflation moderate, that’s clarity. That provides certainty. That says, okay, we’re close here. Now it could really start putting money to work. I don’t have to worry about the stocks really, really falling a lot further from here. After a 30, 35% moves, if you’re owning SPACs and recent IPOs that came out past 18 months, you’re down 70%, 80%, 90%, some of these names.

Frank Curzio: But in order to see the bottom, that’s what you need, inflation to moderate. Everything else is temporary. The war, temporary. They’ll figure it out. Yes, it’ll take longer. Energy price is cyclical. Food prices, yes. Again, they’re going to remain higher for longer, but the inflation picture, that is the biggest thing. It’s the risk we’ve been talking about for a year and a half.

Frank Curzio: When the Fed started putting in that language of transitory said, they’re full of shit. It’s not transitory. Now, we’re seeing why that is so important. Because the Fed can’t do anything to help stimulate the economy like he did for the past 12 years, which is catching everyone off guard.

Frank Curzio: Below inflation, definitely a good sign. Again, indicate we’re close to a bottom. And when we do see that, we’re going to see trillions in cash on the sidelines, balance sheets are flush with cash going to start flowing into areas I mentioned earlier. Stops with low PEs that got nailed already, which have strong balance sheets and paid dividends. May throw in insider buying there, which you’re seeing record insider buying right now, record insider buying. Something you want to see, which we haven’t seen up to two and a half months ago. But before that massive selling over the past few years. Finally, we see insiders go, whoa.

Frank Curzio: And buybacks. Big buybacks and insider buying. So, we want to see when your stocks getting nailed gives you confidence. These guys know their companies better than anyone. So, we bring this all together. We’re going to be in for some more pain, at least over the next three to six months. Doesn’t mean you can’t invest in stocks. We’re been picking away. You see some companies stocks, lower earnings. It may be factored in like you’re seeing with Target, down just 1%, was down 8% really quick. The algorithms kick in.

Frank Curzio: Our companies are able to trade the marks before they even open, but it’s only down 1%. Meaning that a lot of this is being factored in with stocks getting crushed already. Margins start getting squeezed, but the good news is inflation is moderating. There’s lots of companies whose stocks are down 30% plus already, which were reflecting a lot of this risk.

Frank Curzio: So, definitely worth picking away here, especially if we planning on holding company’s only 12 to 18 months, it’s what I’m doing. I’m looking to sell my house even earlier instead of waiting to move in January and then selling my house. I want to put some of this money to work right away. And there’s areas that make a lot of sense.

Frank Curzio: Companies that sell inventory and retailers, there’re several companies that do that. That’s great. That’s an area. That makes a lot of sense. If you’re looking at home improvement. Thinking about refinancing your home, but how about home equities? More money in homes than has ever been in history keeps going higher and higher, and hard. People are going to look to tap that equity and what they’re going to do probably fix up their homes.

Frank Curzio: So, the Home Depot’s that wouldn’t throw, or the Lowes in the same category as Walmart and Targets, are different. I mean, not everything is bad at Target and Walmart, not everything. Food, energy, discretionary items, healthcare and beauty and furniture. Some of these things are really, really getting nailed, but you look at the home improvement market. That’s going to be on fire. I mean, the amount of equity in people’s homes. What were they up? 20%. 25% from last year is incredible. It’s incredible how much prices have gone up. And yes, they’re starting to moderate a little bit. The low inventory they’re going to stay at these levels, especially if below to certain area of Florida, Texas, which see a massive demand, massive, massive demand. Even Nevada, that’s an area too.

Frank Curzio: So, there are pockets you could look at to put money to work, and you could see us put money to work even in our newsletters, which we recommended three new stocks, Curzio Venture, good timing on those. Three new ones. I’m going to recommend to Curzio Research Advisory, which all of our subscribers will get tomorrow after the close.

Frank Curzio: So questions, comments, I’m here for you, frank@curzioresearch.com. Send them in. Daniel and I are going to take a lot of them. We’re going to have them on tomorrow. So be sure to stay tuned, and tune into tomorrow. But I’m getting lots and lots of questions.

Frank Curzio: We’re here for you, getting crazy times right now. Take advantage of it. That’s what we’re doing here. Answering lots of questions, especially with Daniel coming up. And also, I’ll try to get some on Thursday with a fantastic, fantastic interview. So, great week, plan for this podcast. Be sure to stay tuned. 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 11 million times.

Editor’s note:

Tomorrow in Curzio Research Advisory, Frank will reveal two stocks set to profit from two surprising side effects of inflation…

Learn more about the forces quietly eating away at your wealth… and how following Frank’s advice in Curzio Research Advisory can help you turn the tables.

What’s really moving these markets?
Get free daily updates
Episodes about Portfolio Management

Why Gen Z is captivated by crypto

Joe Davide shares Gen Z's perspective on stocks and crypto... what he's learned from the current bear market... his process for researching new crypto projects (and some of his favorites)... and why FTX's implosion proves we need regulation.

Retail is hurting—except one group

What Target's dismal results say about the economy... Why Lowe's CEO is full of s*** ... And why it's a great environment for one group of retailers. Plus, these hated traders are about to have their heyday.

Disney’s CEO should be fired immediately

How a split government will impact the markets... Why FTX's bailout is terrible for the crypto industry—and we need regulation now... Plus, Disney's pathetic earnings—and why CEO Bob Chapek should be fired immediately.

A ‘red wave’ won’t save your portfolio

How wild U.S. politics have become... Why a "red wave" won’t be enough to rescue the markets... Why there's zero chance of a soft landing... And Goldman Sachs' alarming forecast. Plus, the perfect strategy for a 2023 recession.

Why the Fed can’t save the markets

Why you shouldn't expect the Fed to turn dovish... Why we could see a higher inflation target by the end of the year... Why there's no hope of a soft landing... And why the Fed can’t save the markets.

More Wall Street Unplugged

Two big opportunities for profits into 2023

Why energy stocks are soaring despite lower oil prices... Why Russian oil price caps are a bad idea... And how to play the sector. Plus, why Dick's (DKS) is crazy to raise guidance... and how to profit from retailers' shortsightedness.

Disney just replaced one bad CEO with another

Why Disney made a bad choice naming Bob Iger as CEO... and why analysts refuse to downgrade the stock. Plus, what Best Buy's results say about consumer spending... and why we'll see some crazy deals this Black Friday.

What we need for crypto to rally

Frank Holmes of HIVE Blockchain breaks down the FTX collapse... how he avoided massive losses from Celsius' bankruptcy... what we need to see for crypto to rally... and his upcoming crypto conference. Plus, the coming recession could last a while.

Don’t buy into Powell’s ridiculous claim

The market's reaction to the latest rate hike... Why the Fed won't pivot... Powell's absurd comment... And why you need to brace for further downside. Plus, what one pawn shop says about the economy... And the coal company printing cash.

David Evans CEO, TCG World

This is not a game: Metaverse CEO busts the myths

TCG World CEO David Evans clears up some metaverse misconceptions (hint: it's about a LOT more than just gaming and social media). He shares the company's plan to launch by year-end... and why understanding NFTs is critical for users.