Don’t Believe the Earnings Recession Hype

You wouldn’t know it from the stock market, but we’re actually in the middle of an “earnings recession.”

It’s hard to tell this earnings season because the good news keeps piling up…

The Procter & Gamble Co. (PG) went up 4% after it raised its profit forecast.

JP Morgan & Chase Co. (JPM) hit an all-time high after it beat expectations.

Netflix Inc. (NFLX) jumped 8% after its earnings and international efforts beat estimates.

And Amazon.com Inc. (AMZN) is expected to fare well when it reports on Thursday.

Even so, we’ve had two straight quarters of declining corporate earnings – the very definition of an earnings recession. Here’s how: An economic recession for a country is defined as two consecutive quarters of declines in year-over-year (YoY) Gross Domestic Product (GDP) – the amount of goods and services a country produces.

For the S&P 500 stocks, two consecutive quarters of YoY earnings declines signal an “earnings recession”.

And this quarter looks set to be the third.

Some are calling this “bad news,” a “problem,” even a “blaring warning.”

Even so, the market doesn’t care.

And here’s why you shouldn’t worry, either


How to Win More Money Than You Ever Could in Vegas

Two weeks ago, I had the pleasure to introduce chart-based trading of cannabis-related stocks to the attendees of the National Institute for Cannabis Investors Retreat. In this hot new sector, the profit opportunities are as large as cannabis stocks are volatile, so the presentation was very well attended.

And as we were in Las Vegas, the conversation naturally turned to gambling. Some people asked whether the kind of speculation us traders do when we make a trade is the same as the gambling going on in the casinos on the Strip.

Let me tell you, the difference couldn’t be greater.

Gambling is all about luck – hoping you overcome odds stacked against you to make a big score.

Speculation, on the other hand, is not. It is designed to systematically control risk and buy at advantageous prices to make money over many trials or trades/investments.

Let me explain


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