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Market Selloff Scenario From Trader

Today is Monday, September 20, 2021.

Market Selloff Scenario From Trader If Fed Tapers

If the Federal Reserve started to taper this year then the stock market would probably suffer a selloff, says professional stock trader Tony Wilson in a new episode of the Early Bird podcast.

Fed’s Impact: For Wilson, the Federal Reserve’s act of “printing money” over the years has been terrible for the average retail investor.

Technicals Over Fundamentals: Throw the fundamentals out the window, Wilson says. Investors should focus on technical analysis.

Keep It Simple: Wilson’s portfolio only has 10 stocks and with good reason.

Final Thoughts: Wilson explains that new investors should learn technical analysis to trade stocks, so listen to the latest episode of the Early Bird Podcast.


Notable Earnings Today: Lennar (NYSE: LEN), Inventiva (Nasdaq: IVA).

Notable IPOs Today: Software Acquisition Group Inc. III Class A Common Stock (Nasdaq: SWAG), XPAC Acquisition Corp. Class A Ordinary Shares (Nasdaq: XPAX).

Notable Equity Crowdfunding Campaigns Ending Today: n/a.

Notable Economic Events Today: National Association of Home Builders index (10:00 a.m. ET).

Toyota Rolls Out New Hybrid Tundra Pickup

Auto giant Toyota (NYSE: TM) announced that its new 2022 Tundra pickup includes a hybrid engine.

Details: Essentially, Toyota is rolling out two versions of its Tundra pickup next year, including a hybrid model.

Data: Shares of Toyota are up 18.04% this year, up 9.89% in the past 30 days, and up 1.96% in the past week.

Bigger Picture: The positive news for the car giant comes as a federal safety investigation on airbags in vehicles from leading automakers opened on Sunday.

Final Thoughts: Toyota does sport a low price-to-earnings ratio, which means this stock has value.

Crypto Investors Buy Inflationary Theory

Investors who are looking for a hedge against inflation (which is when prices for goods and services in an economy spike) are increasingly drawn to cryptocurrency.

Argument For: Satoshi Nakamoto, the creator of Bitcoin, reportedly once contended that since Bitcoin will be limited in supply, it could potentially be a hedge against inflation. This is similar to gold (another hedge against inflation) and different from cash (which can be printed indefinitely by the Federal Reserve).

Data: As inflation has jumped in the past year, mostly due to economic policies from the pandemic, more investors have jumped on the crypto bandwagon. About 1 in 10 people are investing in crypto, and more digital coins are being created.

Argument Against: Critics say that Bitcoin’s price drop from May through July (which is when inflation crept up) is proof that crypto is not a hedge after all. This is true for other digital coins that dropped during that time too. The price of Bitcoin has since recovered some - but not all - of its value since peaking in April 2021.

Final Thoughts: Cryptocurrency’s hedge theory will be put to the test this year. How will it compare to other inflation bets?

Trends We Are Chirping About

Not In Stable Condition: Why Washington Worries About Stablecoins (New York Times)

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