Wall Street Unplugged
Episode: 931August 10, 2022

These stocks will climb as inflation falls

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Stocks are surging as the latest data shows inflation is moderating—but we’re not out of the woods yet.

I break down the market’s positive reaction to the news… and what the data means for future interest rate hikes. And while the Fed’s plan to lower inflation is working… I explain why Fed members remain the biggest threat to the market. 

I also highlight which stocks will soar—and which ones will struggle—as inflation comes down.

By the way, tomorrow afternoon, Curzio Research Advisory members will get three new stock picks that are in the perfect position to profit in this environment. For immediate access as soon as they’re published, join now.

Inside this episode:
  • The latest data shows inflation is moderating [0:33]
  • Why Fed members pose the biggest risk to the market [5:10]
  • Stocks that will benefit as inflation comes down… [16:54]
  • And which stocks will struggle [24:50]
  • How to get access to this week’s Curzio Research Advisory picks [28:28]
Transcript

Wall Street Unplugged | 931

These stocks will climb as inflation falls

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? It’s August 10th. 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.

Frank Curzio: So, we have interest rates down, the dollar down, stocks surging. Why? Because we finally got a positive CPI reading, Consumer Price Index. That’s the gauge the Fed looks at, the world looks at, to determine where inflation is going, even though it’s a BS gauge and we know that. It’s been revised numerous times. We know that rental income, which continues, rents continue to go higher and higher. That accounts for 30% of this index. However, finally, finally, it showed positive signs that inflation’s moderating. Where it rose 8.5% year-over-year, that was less than 8.7% that was expected. With the core, which strips out food and energy, that came in flat, under the 0.2% increase that was expected. Again, that’s year-over-year. But more importantly, month-over-month, which the Fed is really focusing on, both CPI and core rose less than expected.

Frank Curzio: I’m going to throw some numbers, figures at you. I want you to pay attention. I know some of you listening right now are saying, Frank, you know what? We’re talking about inflation at 8.5%. We’re celebrating this. The market’s going higher. Most prices are still high. They’re not going to take those price hikes back, at least some of them aren’t until they see less demand and they’re going to be forced to lower their prices. Sure. Gasoline price are at what, $3.75, $3.80 on average, but they were $3 a year ago. Food prices are still very high. Rent’s still high. Electricity’s still high. You’re saying hell, almost all my bills that I’m paying are still much higher than they were a year ago. And you know what? You’re right.

Frank Curzio: So, before you say, Frank, you’re an idiot to say this is positive. It’s still going higher. I get it. I pay my bills too. I’m like the Fed who doesn’t get it. But from a market perspective or how this is going to impact your portfolio, whether it’s a personal portfolio, retirement portfolio, 401k, whatever it is, the reason why most of you listen to this podcast, this is great news because it’s the first time a CPI shows inflation is moderating this year. Basically, since the Fed started aggressively raising rates and it’s supposed to happen four months ago, three months ago, two months ago, last month, and it didn’t happen. Finally, with this rating, it happened. I thought it would happen last month.

Frank Curzio: So, what does this mean? It means that the Fed, going forward, is likely going to slow the rate of straight increases, which basically puts a floor on the market and likely means that we already bottomed in early July. For now, it’s one reading, we’ll talk about more about this in a second, but it’s definitely a positive.

Frank Curzio: Now it also removes the negative headlines from other Fed presidents like Cleveland Fed President Loretta Mester, St. Louis Fed President James Bullard, one of my favorites, Richmond Fed President Tom Barkin, and San Francisco Fed President Mary Daly, who in the past few weeks publicly said that rates need to go significantly higher because they did not see any signs of inflation moderating. I had a massive rant on this and show you why there’s such a disconnect between what the Fed does. I don’t know who they hang out with. I don’t know if they lock them all in a room and they’re not allowed to talk to somebody. I don’t know if they never pay their bills. Maybe they’re just filthy rich. But for them not to see what is going on, that inflation is moderating in so many places was crazy.

Frank Curzio: Some of them suggested that we should be at 4% in the Fed funds rate. This year, we’re only at two and a half percent. This year. Another one and a half percent rise after being from zero to two and a half. Now, they want it to be 4% saying they’re not seeing any evidence, any evidence at all, even though it was in plain sight over the past six weeks, seven weeks. Copper down 40%. Lumber got cut in half. Oil was $130. It’s $90. Gasoline prices down over 25%. Mortgage demand falling off a cliff. Supply chains easing showing that demand is slowing. They’re saying that demand is slowing. There’s actually container ships that are staying longer and longer on these lots because the demand is slowing.

Frank Curzio: Retailers, Walmart, Target, across the board saying inventory levels are incredibly high, which means it’s going to have to sell these items at steep discounts which will take months to do so. Right? That’s deflationary. These are signs. I’m not saying that it’s great. I’m not saying inflation is not here. But from a market perspective, this is the most important thing. You have to focus on the Fed. Don’t fight the Fed. Don’t go pay. That’s why stocks, it was a buy the dip for 10, 11, 12 years. It’s a credit crisis. Buy the dip. Buy the dip. Buy the dip. Buy the dip because the Fed was keeping rates low. They were forcing rates low. They kept them low and they were also buying bonds.

Frank Curzio: So now, when you raise rates, it’s totally different. But when you’re looking at inflation, it’s clearly moderating in some places, and that’s what we need to see. But these Fed presidents that I just named, they were saying this publicly and this is over the past few weeks. This flies in the face of what Powell, the Fed chair, is saying because you didn’t hear him say 4% at all. That wasn’t on the table. He didn’t say that, but that confuses the hell out of the markets. It confuses the hell out of investors, of institutions on what to do because you’re contradicting, basically, I was going to say his boss, but he can’t get fired and but he’s the chair.

Frank Curzio: But I’m quoting here. This is what Powell said. This is six weeks ago. He told Congress the pace of interest rate increases will continue to depend on the incoming data and evolving outlook for the economy. He didn’t say inflation’s still wildly out of control and we got to raise rates incredibly. And all these guys have said this, and these people that have said this are Fed presidents, were all completely dovish pre-2022. It’s transitory. We’re fine. We’re fine. We’re fine. That’s what they said. Now, it’s great that they’re saying this because you just have to do the opposite of what they do and usually, you’re going to work out perfectly fine.

Frank Curzio: But these Fed presidents, they need to be muzzled. Put tape over their mouth. Shut them up. I mean, no idea why these guys are allowed to speak publicly and contradict their chair, which is Powell, which makes predicting what the Fed is going to do very, very difficult. I’ve said this a million times over the past 15 years I’ve been doing this podcast. Uncertainty is the death of stocks. It’s the death of equities. It’s like me talking to my shareholders about my company after my quarter saying yes, we’re seeing growth. I expect to be strong over the next 12 months, probably going to do some hiring. And then, members of my board who are not even like the COO, the C whatever, right, it could be chair, whatever, they start speaking all over the world that Congress is saying no, no, no. Curb your research. They’re not going to grow that fast. Inflation’s going to hurt us so we got to be careful.

Frank Curzio: Think about that. And if you contradict what the boss says publicly, publicly, whatever happens behind closed doors or whatever, you have disagreements, whatever, that’s what you have partners for. Right? But publicly, you all have to be on the same page. If not, that’s grounds for being fired, if you’re going against your boss, basically. They can’t be fired. Right? They’re voted in. But think about that, how crazy it is. And remember, when it comes to the Fed, especially since 2008, 2009, and those have been following even earlier again. From 2008, 2009, they made it policy to be more transparent, to tell the public ahead of time, testifying before Congress. You’re seeing it all over TV now. It never really was broadcasted on CNBC, where you had the Fed chairman testifying in front of Congress.

Frank Curzio: Now, it’s a very big deal because they’re more transparent. They tell you what it plans on doing, the Fed, in regard to interest rates, that balance sheet over the next three to six months. This way, there’s no surprises because what happens when we see a surprise move by the Fed, the most powerful organization in the world, where if they get it wrong, the entire global economy falls into recession. People lose their jobs. People die if they get it wrong.

Frank Curzio: We see the markets, what, for 11 or 12 weeks. Right? This happened in November, where they were totally like transitory, transitory, transitory. I said holy shit. We are so wrong. Inflation’s out of control, and we’re going to have to raise rates super aggressively over the next 12 months to try to control it and stop. We don’t know what we’re doing. And what happened? Markets crashed. NASDAQ fell 30%. Many stocks, 60%, 70%, 80% because massive leveraging.

Frank Curzio: Holy cow. You’re not just like slowly raising rates. You’re talking about going from zero to two and a half, 3% immediately. I remember in November with Goldman, you look at the reports. Oh. We’re going to be at 1% at the end of this year. Oh. It’s going to be one and a half, 2%. Then all of a sudden, it’s three, three and a half percent. Whoa. I mean, this is a major factor. Going from zero to two and a half is like you’re losing a football game 80 to nothing. That doesn’t happen in that time period. You have to let it filter through and it’s filtering through. It’s not like wow. We’re seeing prices decline. All of a sudden, they’re going to go higher. You’re seeing it factor in. It’s getting hard to borrow money. You’re seeing things shrink. Not everything, of course. I’m not here saying wow. We’re good. That’s it. No, but right now, based on the data today, which we’ve been saying.

Frank Curzio: I hate saying it that way because it sounds arrogant because again, we’re wrong on some things and I’ll cover that in a minute, one sector I thought the buyers are screaming by now. But there’s clear evidence that it’s working and the reason why you could see, I’ve never seen it work this fast where in a six-week period, boom. Holy cow. Copper prices. Wheat prices. Corn prices. Wow. Energy, $130. Everybody bullish. It’s 90. Gasoline prices are down. Tremendously, they’re down. Yes. They’re still up 20% year-over-year but they’re down incredibly.

Frank Curzio: But the Fed, you don’t want any surprises. That’s why they come out and tell you hey, this is what we’re going to do. But when you have Fed governors going everywhere and it’s getting picked up… You look at Bloomberg. You look at Briefing.com. You look at all these services whether it’s capital. All these news feeds are picking up what these governors are saying and they’re even mentioned on CNBC. Wow. They expect 4% rates. 4% rates? If we go to 4%, we have another 20%, 25% downside here. There’s no way they should go to 4%. That would destroy the market in 2023. It would destroy it and that’s why we rose so much off July. The market usually knows ahead of time, what’s going to happen. Don’t fight the markets. The markets have been rising, rising, rising, and now look where we are.

Frank Curzio: Now, this is just one positive reading. Just one. So the point is, when you’re looking at the Fed, September’s their next meeting. They were supposed to raise 50, 75. It was kind of split, 75 base point hikes September. 75 base point hikes September is now off the table. Market expects a 50 base point hike. Okay. That’s okay. But there’s mounting evidence that the current rate hikes are starting to work, which means the Fed is likely, after that rate hike, they’re going to come out and either say we’re not going to raise rates or they’re going to be dovish, which they haven’t been in a while, which crushes markets. I’m going to say you know what? Wait and see. Things look okay. It’s heading in the right direction. We see what’s going on. It’s a soft landing. May have bottomed. You could argue what’s the definition of recession since we’re changing that now, too straight quarters negative GDP.

Frank Curzio: But maybe we don’t fall into a recession. This is a softer landing. Unemployment stays pretty strong. But we’re seeing inflation moderate in so many different things, not everything, not rent, not really food, but in a lot of things especially energy, which impacts all of us and we see that. I see that. It was costing like $110 to fill up my tank. Now it’s like $90. It’s a big difference, especially for me since we’re moving and we’re driving like crazy back and forth, more than probably anyone drives in the country right now other than truck drivers.

Frank Curzio: But that’s the big theme. That’s why stocks are going up so much. So, when you’re looking at it from a… There’s a difference between personal and there’s a difference between what the markets want to see and what your stocks want to see and they overshot completely. And now, you’re seeing them catch up. So the Fed, right now, if we come out, you’re looking at August and you say well, what’s going to happen if inflation start’s rising again? And it could. I’m not saying it can’t. But if you’re looking at the data right now, it’s probably going to come in at a much better reading than even this month if we continue on this pace and just stay this way because energy prices are down over 10% just this month and this is the data that’s being included in the next reading.

Frank Curzio: So, let’s see what happens. So, this is going to be… The August date is going to be reported right now, a month from now, September 10th. And then you have the Fed that’s going to come out, and they’re going to look at that and this month’s reading and say okay, we’ll moderate. But even when you’re looking into next quarter, we’re still seeing inflation moderate. But more importantly, we’re seeing supply chains ease because you don’t have this massive demand. That’s very, very important, where companies could be more predictable whether it’s car companies, chip companies, any electric company that uses a chip could be more predictable now. That’s why you’re seeing companies like Apple really surge, seeing other names in a chip sector, technology surge.

Frank Curzio: But looking at the numbers right now, the Dow today is up 1.5% percent. I’m doing this around 11:30. That could change. Who knows when news comes out these days? But you’re seeing, across the board, you’re short and those net shorts have been building these positions, building, building, building these positions. I’ll be surprised. I don’t know. You can’t predict what the markets are going to do. I like to throw it out there and if I’m wrong, I’ll say I’m wrong. But the shorts here, there’s a lot of people short in this market right now saying we came back too fast. You might say that’s right because the S&P 500 is now at 15% from its lows. And we say it’s lows, basically since July 1st. The NASDAQ’s up 20% from its lows. You’re like holy shit. NASDAQ’s up 20%. A lot of your names, you’re seeing up a lot more than that. But the S&P, right now, is still down 12% for the year. The NASDAQ is still down 18% for the year. That’s how much we sold off.

Frank Curzio: Now people are like, wow, things are still bad. We’re probably going to be in a recession. We have inflation going crazy and you saw those short positions and people go more net short, just going short. You might see a little bit more covering because it’s dangerous. If the Fed comes out in September and they’re dovish, I don’t know if they’ll actually say we’re not going to, I don’t think they’re going to say we’re not raising rates because they just want to look because they got it so wrong in the past. They don’t want to get it wrong this time. But they’re going to say hey, right now, it’s working. We’re seeing inflation moderate, which is good, and we’re also having a soft landing where we don’t have to raise to the point where it’s going to hurt the economy so much, we do fall into a deep recession, if you don’t agree we’re in recession now.

Frank Curzio: But if that happens, it’s going to be very tough to be short in this market right now. You can be short in certain sectors. Yes. That makes sense. But the overall market is going to go higher if the Fed is dovish in September and right now, looking at the next date in the readings, with energy being a big component, there’s a good shot we are going to see inflation plus with the interest rates. Again, it’s not like one month change. Right? When it comes to inflation, you’re seeing it moderate because what the Fed is doing is working. It’s working and it’s going to continue to work. It’s going to continue to be a drag on the cut to slow it down and pull. Right?

Frank Curzio: So, think about… You’re pulling something. Right? If you’re running and you got these ropes around you and you’re holding someone back, you’re not going to let them go. It’s not like oh, inflation. The ropes are still there. It’s still slowing. That’s what happens when you’re raising interest rates. You’re raising rates. You’re slowing the economy down and you’re seeing it leveraging in a lot of these sectors. However, you need to see it moderate. You don’t want to see continued pulling. Right? You continue pulling even harder, which means you’re raising rates.

Frank Curzio: Well, right now, what you’re doing is working. You’re starting to see that train where it’s going downhill. You couldn’t stop it. It’s starting to slow so, so, so slow and it should continue. This is the way it’s worked in the past. It should continue to ease, which is going to make the Fed in a prime position to say look, okay. We’re doing our job. It’s working right now, and let’s see, and Powell’s going to say we’re going to take a look at the data. But right now, we might hold rates steady for the rest of the year. And if they say that, the markers are probably at least 10% undervalued right now. Maybe we still finish down for the year, but you’re going to see a nice comeback even further than we come back since July.

Frank Curzio: Now we look at sectors and it’s important to look at sectors. Right? So, who’s going to benefit from this report banks. So, a lot of times in the podcasts, I say well, this is what I said or whatever. Well you know what? I was wrong in the banks. I told you to buy banks six months ago and the whole entire market collapsed. I didn’t think you’d see that much of it deleveraging that quickly. I was wrong on that but banks are in prime position. You might say, Frank, wait a minute. They benefit from higher rates or net interest margins but you’re saying that the Fed could slow down. They’re going to slow down. They’re not going to reverse it. They’re not going to reverse it and go to zero again, at least not for the next 12 to 18 months, in 12 months, you could say.

Frank Curzio: So, they’re benefiting right now. Their net interest margins are incredibly, incredibly high. Right? It’s skyrocketing. They’re going to be over 30% from where they were last year. So yeah, the Fed may celebrate it, the rate of rate hikes or say hey, we’re going to hold still, at least for the next six months or so. That’s great for the banks because now they’re generating a ton of business, which that part of their industry sucked for such a long time. The initial margins were horrible. At the lowest levels, you have interest rates low. But now, they haven’t really raised their rates on checking, savings, and things like that. But rates are going higher and higher, where they button money out and they’re making a lot more money plus now you have a double benefit not just from fees, well, not just from this part of the business and interest margin and interest rates but fees, which was their bread and butter. But that kind of went away because the market collapsed, so much so you didn’t see a lot of MNAs. IPOs would’ve been shelved.

Frank Curzio: So yeah. You’re used to trading activity. Okay. But for places like Goldman and stuff, I don’t think Morgan Stanley’s transaction activity was as good, but now you’re going to see both ends of this where it’s their fee structure, and the interest structure, and you’re hearing this from banks. They’ve been saying this for six, nine months, when interest rates go higher. They’re like we are in prime position and they are in prime position. That’s why they’re raising their dividends. They’re buying back stock because they’re not really allowed to lend it all out because of crazy laws that still exist, which is nuts, but it ensures that our banks are in good standing.

Frank Curzio: So, you should own banks even large ones. Go a little bit more aggressive. You can get the JP Morgans and do well, nice dividend in some of the bigger ones, and maybe the top four, whatever as you’re researching it, but throw banks in your portfolio. I get nice dividends. You’re going to see strong growth. Earnings are going to explode going forward. But now, you’re taking kind of like that really deep recession off the table, if you’re sewing that interest rate hike and that’s going to be great where you’re going to see MNA activity come back, IPOs come back that have been shelved over the past six, nine months and that’s going to be great for a lot of these banks, investment banks, and a lot of these names. That’s a sector that should benefit tremendously.

Frank Curzio: Aggressive sectors that have gotten annihilated, small caps, very aggressive with small caps, cheapest they’ve ever been. Now, this is great and the dollar doesn’t really hurt them because the dollar is good. Most of these companies is small caps that do business in the U.S. They don’t do business overseas so they don’t get hurt as much and that has been cheaper. Small caps compared to large caps have been cheaper than almost any time in well over a decade. Not to mention if you’re just looking for the price of growth perspective, it’s never been cheaper other than last month. Still, it’s at levels we haven’t seen, in my research, taking me back for 22 years. That’s how much small caps sold off.

Frank Curzio: So, you have to look at how much these stocks sold off. You can’t just look and say wow, I never looked at the small cap and nicks? I have no idea what’s going on, but I’m a little worried about the market. Well if small caps only sold off 10% during this timeframe, I’d say well, you got to be careful, but they sold off 30%, 35%. Some of these names are down 60%, 70% in biotech. You’re looking at the technology companies, tech sector across the board, even large cap tech, have sold off tremendously. But you know what? Supply chains are easing.

Frank Curzio: So, start looking at companies that got hurt from supply chains because the next six months or next two cores, they’re probably going to say, hey, they’re easing now, and we have more predictability, where even the car companies are going to get out more of these EVs now.

Frank Curzio: More money with the CHIPS bill that just passed. So CHIPS companies, tech companies, and also semiconductor companies. Two areas you should be looking at as well as small caps as well as crypto where you saw Ethereum get murdered. I’ve been telling you 90% of crypto is BS, and it’s nice to see this filter out because this is where all the innovation’s coming from, Dow, Metaverse, NFTs, DeFi. This is where it’s coming from. The innovation, the innovation part is coming from. This is where everybody’s going. This is where all image technology companies are spending a ton of money. This is where innovation’s coming. Got rid of a lot of the BS. But still, 10% of this industry are great names that we’ve been researching.

Frank Curzio: So, we see a theory full of 800. There was 1,800 today. It was 800 a month ago. Bitcoin, you’ve seen catch a bid. Now, you’re going to see all these institutions. You heard Fidelity to come out and say, hey, we’re going to offer 20% allocation to retirement accounts pretty soon. Be sure to listen to tomorrow’s interview because it’s a great interview about Bitcoin IRAs. Please listen to that. Give a little shout out. It’s going to be a great interview tomorrow.

Frank Curzio: But you’re looking at Bitcoin. Some of the good ones, some of the good names here. There’s Avalanche and a couple others I won’t mention, but we have a lot of good names on our portfolio that are starting to rebound sharply after selling off tremendously. Even the great names sold off tremendously because of the leveraging. Now you’re going to see some of these names start bouncing back. You saw it already. Some of them are up 25%, 30%. Ford’s up tremendously from its highs.

Frank Curzio: If their supply chain eases, Ford is a great investment going forward and I’ve been critical of them for a long time, all the way down, because the CEO has been lying about their supply chain concerns and the fact that they’re like we’re going 100% EVs. Right now, Ford came out and said we can’t make money on EVs. That’s why they just raised the price of the F-150 Lightning. They just raised the price of it because right now, they’re not making money on their EVs. That’s how much the costs have risen, batteries and everything, across the board. So, you have to sell more gas vehicles, and they’re like we’re getting out of gas. No. You have to sell more gas vehicles, which they did last quarter, and you saw those numbers explode so great sales for the last month at Ford.

Frank Curzio: So, start looking at car companies. Start looking at names in the chip sector that have gotten hit hard because that’s going to start easing right now. And now when you have the Fed saying hey, you know what, we could… Again, it’s one month of data but it’s positive. Usually when you see, this supposed to happen last month, I thought it would happen last month, when you saw easing, it’s still relatively high. It’s very high, but you want to see that trend coming down because it’s going to result in the Fed being less aggressive. That’s the biggest risk of the market, of them raising too much, too high, and overshooting. And if they do that, that is the biggest risk to the market where you see stocks fall and you’ll all see bankruptcies, more deleveraging.

Frank Curzio: But if they slow that pace right now, that’s what the market’s telling you. That’s why we’ve seeing a nice bounce. That’s why I’ve seen a tenure down at 1.7%. Sorry. 2.7%. We’re seeing it down. It was over 3%. What the 10-year is telling us is that the Fed is going to slow and may say look, you know what? 3% may be the top, when it comes to the Fed funds rate, and it should be. At least at 3% and let’s see, for a couple months, what happens and if it’s not working as well, then we go high. But based on the data today, you have to be willing to change your mind and sell stocks.

Frank Curzio: If we see inflation start rising tremendously next month, heading into September, and they go 50 basis points, 75 basis points, which I think 75 is crazy, and they say, hey, you know what? It’s going higher. We got to get more aggressive. That’s different. You change your mind. You change your portfolio. As of right now, stocks should continue moving higher because the Fed, which is the most important thing, the most powerful organization on the planet by far, is probably going to get dovish when it comes to September after they raise by 50 basis points, which is good news.

Frank Curzio: So, you’re looking at small caps, catching a bid. They’ve been catching a bid. Banks, technology, crypto, semiconductors. You’re looking at losers. I would say energy only because there’s so much money that poured into that sector. Yes. $90 is an incredible number, when you’re looking at oil prices. I mean, remember when they were like futures pricing at zero not long ago. It was like 18 months, two years ago. You know? We were looking at $40, a good $50. Then it went to $130 which is insane.

Frank Curzio: But looking at stocks in general, and we’ve seen a lot of money coming out of these names over the past six weeks, they’re still up tremendously over the past year, past 12 months. But when you look at institutional money, they go to what’s working and they poured into energy, which was the only thing that was working. Everything else was not working except for energy, basically. Just look at the S&P performance right now. Look at the yearly performance. You’re seeing how much oil companies come down and down 35% from their highs. There’s still, like 30 of the top 50 names are energy companies when you looking at performance for the year. They’re up tremendously.

Frank Curzio: So now, you’re going to see rotation. That’s what you’re seeing. If other things are working, they’re going to rotate out of that and go into some more. Now this is telling you all right, the leveraging is probably going to ease a little bit. You’ll see more money pour into some of these aggressive sectors that got annihilated like biotech has gotten annihilated, annihilated. And the biggest funds, man. I don’t know who was keeping track of those guys and how leveraged they were but man. The force selling in that industry. I can’t tell you how many great names in biotech, they were trading below cash and these are companies generating revenue. I’m not talking about just the speculative ones putting all the eggs in one basket and going into phase two right now. We have positive phase one. If it doesn’t work, it’s going to go down 80%. If it does, it will go up 500%.

Frank Curzio: I’m not talking about those names. Good names that have great partnerships that are generating revenue have gotten annihilated. Annihilated. That’s a sector that topped in February. I’m talking about February 2021, around there, February, March, and have consistently went down into November and then got annihilated when the Fed reversed course and said, hey, we have to raise rates.

Frank Curzio: So, this is very positive. This is something you should have been prepared for. I’ve been investing in a lot of new stocks. We’re going to have more recommendations, if you’re a Curzio Research Advisory newsletter subscriber. We usually publish on Wednesday, which is the second week. We just wanted to see these results first. So, I don’t know if we’re going to come out tomorrow or Friday, but you’re going to get it either tomorrow or Friday. There’s going to be at least two recommendations, likely three new recommendations in it, so I just had to finish up my research, which is great.

Frank Curzio: But it was important to see this number because if you see another negative number of inflation still rising, you could have saw capitulation and people saying, all right, I’m throwing in the towel. Holy shit. Inflation, they can’t control it, the Fed. It’s just crazy, and they’ve got to go to 4%. That would result in the markets… I mean, what you’re seeing right now, across the board, with some of these stocks up 8%, 10%, they’re showing it on CNBC right now, they would be down 10%, 15% right now if this number was bad. You would’ve seen a huge shift in capital to the other end instead of coming into the market. So now that we’re seeing you, you’re going to see lots of recommendations. A lot of names are still down 20%, 30%, 40% from their highs.

Frank Curzio: Yes. They’re up 20%, 25% from their lows but crazy buys… A lot of these companies have pricing power. You’ve seen Insight is still buying at these levels even though you’re buying aggressively at almost at a record pace two months ago. Now it’s slow. You’re seeing a little bit more sales and buys but there’s a lot of good names out there, especially large mid-cap, that you would buy and say all right, I want an 8% return over the next year, annually over the next couple years. I mean, you could see 20% plus returns on some of these names on how far they’ve come back over the next two years, three years and you might see that right away. You might see that later. But where they’re trading right now, there’s a lot of names I’m seeing that are screaming buys, and you’re going to see them come out in my Curzio Research Advisory newsletter, which is a very affordable newsletter.

Frank Curzio: It’s almost like a, not a beginner newsletter but it’s focused on large caps, mid-caps, good companies. It’s not like Curzio Venture Opportunities, where it’s a lot more research. Sometimes, we put in micro-caps in there, where I’m the analyst providing all the research, and they’re looking at my stuff, my model on stuff, so a lot more research is dedicated to that. In terms of some of these other large cap, mid-caps that are covered by 2030 analysts sometimes, so it’s a lot easier. So, those newsletters are a little bit more expensive but Curzio Research Advisory is a very affordable newsletter. If you guys want in, just give me shout, frank@curzioresearch.com. Again, it’s extremely, extremely affordable, less than what you would fill up your tank right now for gas, for the year. That’s the year subscription.

Frank Curzio: All new subscribers will come in. A lot of them come in to Curzio Research Advisory or Dollar Stock Club. This way, they see what we’re about. Right? When you subscribe to that, it’s hey, let me see what Curzio’s about, and you’re going to see a newsletter where I do 30-minute videos breaking down, showing my research, which is sharing a lot of the sites that I pay a lot of money for and institutional research and showing why I recommend it, really breaking it down, easy to learn. That’s why I’m trying to educate you as well.

Frank Curzio: But that’s a great starting newsletter. If you guys are interested, let me know, Curzio Research Advisory. That’s going to come out either tomorrow or Friday. I’m going to try to get out by tomorrow. I was doing a little research, finishing up but you’re going to see at least two recommendations, maybe three in the next newsletter, which is really cool because we’re going to start getting aggressive because I think the Fed, what we’re seeing right now, we’re going to continue to see inflation to moderate going forward and that’s going to make the Fed much more dovish, which I think if they do, you have a lot more upside in this market, especially through year-end.

Frank Curzio: Let’s see what happens. Markets are still down. I know they’re up and you’re like, wow. It’s come back. It’s cool. I don’t know. But remember, the S&P’s still down 12%. NASDAQ’s still down 18%. Right? So, there’s a lot of names that are down more than that in those two indices, and those are names we’re going to be focused on, names that have been unfairly punished. You’re going to see separation in a lot of these industries, but you will see some recommendations at Curzio Research Advisory.

Frank Curzio: So guys, that’s it for me. Questions, comments, free email me at frank@curzioresearch.com. I’ll say it again. Be sure to tune in tomorrow to Bitcoin IRAs. It’s really, really cool. You’re seeing Fidelity. You’re seeing BlackRock. You’re seeing Coinbase. You’re seeing more and more money pour into crypto. Bitcoin, Ethereum offering this alternative asset class because clients want it so JP Morgan did an about-face. You’re looking at hedge funds doing an about-face and you’re going to see money start pouring into this.

Frank Curzio: Here’s a way because Bitcoin IRAs are pretty cool. I don’t get paid by this company or whatever, but they’re going to show you how you can invest if you want a portion of your money in IRAs. This way, you don’t have to wait until Fidelity, BlackRock, or whoever, and State Street gets their approvals or whatever and how long that takes. You could actually do it right now, and it’s a safe way to do it. So, it’s a great interview tomorrow. Make sure you stay tuned and tune into that because this is a first time guest, and it is a great interview. So, I’ll see you guys tomorrow. Take it easy.

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:

Frank’s about to drop 3 new plays that could make you a killing in this market.

When you join Curzio Research Advisory today, you’ll not only receive IMMEDIATE access to these picks the moment they’re available… you’ll also get access to the full Curzio Research Advisory portfolio, which contains many other high-upside buying opportunities. Here’s how to join.

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