In his podcast addressing the markets today, Louis Navellier offered the following commentary.
If you wish to listen to this commentary, please click here.
Global Economy Being Impacted By A New Wildcard
The new wildcard impacting the world economy is the attempted assassination of Russian ultranationalist, Aleksander Dugin, which killed his daughter, Darya Dugina, in a massive car bombing last Friday. Not surprisingly, Russia is now blaming Ukraine for the car bombing, especially in the wake of Ukraine’s special forces conducting successful strikes within Crimea. However, it is also possible that the car bomb came from within Russia.
Q2 2022 hedge fund letters, conferences and more
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How will Vladimir Putin respond? Fears of a nuclear incident in Ukraine from the fighting around the nuclear power plant or an unthinkable nuclear attack by Vladimir Putin is now much higher.
Energy Stocks Are An Oasis Amidst Uncertainty
In the midst of all this uncertainty, food and energy stocks are expected to remain an oasis, since they are expected to prosper in the wake of a Russian escalation.
If and when the Ukrainian war ends, the stock market could surge 40% to the upside in a massive relief rally, but as of last Friday when the car bomb exploded in Moscow, all bets are off for a ceasefire.
The best investors can hope for is to hide in the food and energy stocks that are prospering from Russia’s bad behavior.
U.S. Has An Advantage Over Europe And China
The other interesting development is that a severe drought that is impacting central Europe and China is now hindering economic growth since transportation of raw materials on rivers has become increasingly difficult. Normally, the weather does not impede economic growth for long, but until heavy rainfall fills up the major rivers in both Europe and China, more raw materials and goods have to be transported on trucks and rail cars. Naturally, these disruptions are impeding GDP growth, so the U.S. suddenly has a big advantage over both Europe and China.
America remains the oasis. Our Fed is going to be increasing rates one more time which is going to make the dollar even stronger. The strong dollar is going to attract foreign capital which is going to push our Treasury yields lower.
I see a lot of good things happening as we enter the fall months. If I had to pick a date for the market to explode to the upside, it would be September 21st, because I think there will be a dovish FOMC statement and that the Fed will essentially say they are now neutral and they will remain data-dependent, which means they probably won't raise rates after September 21st.
Coffee Beans
For the first time ever, streaming services such as Netflix, YouTube, and Hulu surpassed Cable TV in U.S. television consumption last month. Streaming accounted for 34.8% of total TV screen time in July 2022, while cable and broadcast (i.e. traditional linear TV) accounted for 34.4% and 21.6% of total viewing time, respectively. Americans spent nearly 191 billion minutes per week streaming in July. Source: Statista. See the full story here.
