Rachel’s note: Many readers are concerned whether we’re on the cusp of a market crash.

That’s because January marked the worst stock market plunge since March 2020.

But Jeff Brown, technology expert and Casey Research friend, believes this won’t last long… and that the market is simply overreacting to signals from the Federal Reserve.

And luckily, Jeff has put together a special briefing to walk you through the current situation.

So if you’re worried about whether you should buy, sell, or hold… sign up for Jeff’s event here. It’s taking place on Wednesday, February 16 at 8 p.m. ET, and it’s free to attend.

For more details about what’s going on in the markets, read on…


By Jeff Brown, editor, The Bleeding Edge

Jeff Brown

This January marked the worst stock market plunge since the March 2020 crash.

Technology stocks were particularly hard-hit. The tech-heavy Nasdaq Composite dropped 10% in a month.

And the SPDR S&P Biotech ETF (XBI) saw an even bigger drop, falling 20% to start the year. Even the cryptocurrency market cap sank roughly $500 billion during January’s selling.

Obviously, this is deeply concerning… The red we’ve been seeing has hit all of our portfolios, including mine.

Many readers are concerned whether we’re on the cusp of a market crash.

So today, let me explain what I see going on in the markets… and share my blueprint for handling this volatility…

Fed Fears

The market is overreacting to the signals coming from the Federal Reserve. The Fed is implying it will raise the Fed Funds rate several times in 2022.

It’s said it could raise rates three or more times throughout the year… and will reduce the assets it’s buying as well.

That’s been causing a lot of concern in the marketplace.

As I mentioned above, the technology sector is down. And while this has been a broad market decline, the plunge hit tech harder than the S&P 500… since that’s where we’ve seen some inflated valuations.

And all this volatility is bringing some of those inflated valuations back down to earth.

I’ve warned readers several times about the lofty valuations of companies like Snowflake (SNOW) and Zoom Video Communications (ZM).

When companies trade at 80–100 times sales, then those ridiculous valuations need a correction.

The Fear Is Overblown

We do have real inflation right now, but there’s one big reason why I think the Fed won’t act on all its talk about rate hikes.

We don’t have the desire or the willingness to raise interest rates that significantly given the November midterms coming up.

I believe a 25-basis point increase will occur in March. Beyond that, I’m very skeptical. We may see one rate increase after that, perhaps in Q2.

But during the second half of the year, I just don’t see the Fed touching rates. It’s too dangerous, and they won’t risk impacting the markets in that way.

Already people are struggling with the cost increases of just about anything we purchase. Having the markets, the value of our savings, and the value of our stock portfolio decline at the same time is just unacceptable.

But we will see a secondary effect… With declining asset prices, I do expect to see the labor market return to a much healthier state.

We had record levels of resignations in 2020 because the value of people’s homes, stock portfolios, and cryptocurrency portfolios were high.

People felt like they had cushion and could live without needing to work.

As asset prices decline, we’re actually going to see a shift back into the workforce. I expect the labor force participation rate to increase in the coming months.

We have to remember that we have a very strong economic environment, despite the chaos we’re seeing in the markets.

Where Do We Go From Here?

I want all my readers to know my team and I are watching the markets very closely. We’re looking for great investment opportunities as fantastic assets and companies come back down to realistic valuations.

Ultimately, I believe interest rates will stay below 1% in 2022. And that means money will continue to flow into the equity markets.

And in the meantime, we’re still on the lookout to help readers through the current turmoil… After all, many investors are worried… and are wondering exactly how to play this situation.

Should we buy? Should we sell? Or should we hold?

The good news is, I’ve put together an exclusive briefing to cover this very topic.

On February 16, at 8 p.m. ET, I’ll share not only on the best way to play the markets… but also what I’m doing with my personal money right now. And I’ll also be unveiling the name and ticker of one of my top stocks for an easy double this year.

If you haven’t already, please put February 16 on your calendar.

And then simply go right here in order to RSVP for this event. I promise it will be worth your time to tune in.

I’ll look forward to seeing you there.

Regards,

Jeff Brown
Editor, The Bleeding Edge

Casey Research Is Hiring… Could You Be the One for the Job?

Casey Research is searching for a highly experienced, connected, credible senior research analyst. What makes you tick? All things electric vehicles.

You believe in the technology… you believe it will change the layout of the world… and you understand the enormous investment opportunities in the EV sector.

You also have big ideas about what’s ahead for the electric vehicle industry… and which niche areas of the market are set to boom based on the demand for metals, tech, charging stations, safety, you name it.

To put it simply, if you have smart ideas… you have a vision for the EV market… and you can demonstrate how investors can make money from it, we want to talk with you.

The outcome: potentially partner with the Casey Research team to help lead our EV research efforts.

Responsibilities

  • Immerse yourself in everything related to electric vehicles

  • Be the go-to expert for EV investment analysis and commentary

  • Research and analyze trends in the EV industry

  • Augment existing research on EV-related companies

  • Help develop investment themes and ideas

  • Build on existing industry contacts, travel to trade shows, industry events, and conferences

Qualifications

  • Ideally several years in the EV industry, working for a related company, in consulting, or private equity

  • Bachelor’s degree a plus but not required for a real industry expert

  • Demonstrable industry connections/network

  • Deep understanding of EV supply chain

  • Strong analytical skills

  • Can handle multiple, complex issues, and prioritize in demanding situations

  • Sedentary work that primarily involves sitting/standing

  • Visual acuity for reading and using the computer

  • Ability to hear

  • Ability to freely move about the office

  • Ability to use the phone/computer/keyboard/mouse/general office equipment for extended periods of time

  • Ability to communicate well with others in order to exchange information

  • Fluency in the English language

If you think this sounds like you, send a message to [email protected] with the subject line: Your Go-To EV Expert.

About Legacy Research Group

From the beginning, independence has been the key to our success. Unlike the mainstream press, we don’t make our money from corporate advertisers. And unlike Wall Street, we don’t take commissions or fees from the companies we cover in our newsletters.

Instead, we offer ideas, opinions, and recommendations.

Our mission is to provide readers with a broad view of the world. So, we ask questions. We research and test. But we do not claim to have the last word on every issue. We explore ideas with our readers… so they can decide for themselves.

That means we don’t have a one-size-fits-all approach to finance and investing… Just like each of our readers has his or her own personal investing style.