[Altos Weekly Traders Edge] Central Banks Divergence Concerns...Details Inside

Sponsor Do you know the 3 golden rules for dividend investing? Would you like a simple set of guidelines for building a rock solid dividend portfolio? Including the two specific tickers I just put $50k into? Well, it’s all included in these FIVE Dividend Cheat Sheets [>> You can grab your FREE, laminated copies right here <<]( Just Pay Shipping! By clicking the link above you agree to periodic updates from ProsperityPub and its partners ([privacy policy]( The $3 Trillion Club: Are Tech Giants Redefining Value? Weekly Market Overview Hi Traders, Amidst the somber reflections on D-Day's anniversary, a seismic shift in the financial world unfolded. Three tech giants – Microsoft, Apple, and Nvidia – each soared past the $3 trillion market cap mark, now accounting for over 20% of the S&P 500's total value. Echoes of the dot-com era reverberate through the financial news, with comparisons drawn between Nvidia's recent stock split and Cisco's infamous split in 2000. Are we on the precipice of another bubble burst? As someone who weathered the dot-com storm firsthand, I offer a perspective that extends beyond youthful exuberance. The dot-com bubble wasn't just about inflated stock prices; it was a time of irrational exuberance, where companies with no earnings traded on sheer fantasy. Today's market landscape is different. The leading tech titans are profitable, with consistent earnings and revenue growth. Their balance sheets are robust, boasting global reach and resilience against interest rate fluctuations. This isn't to say that caution should be thrown to the wind. A $3 trillion valuation for any company, no matter how successful, warrants careful consideration. As investors, we always try to maintain a balanced approach, acknowledging the potential risks while recognizing the undeniable strengths of these industry leaders. Our exposure to the S&P 500 index inherently includes a significant stake in these three companies, reflecting our belief in their long-term value. The question remains: Are we witnessing a paradigm shift in the tech landscape, or are we simply reliving a familiar bubble? Only time will tell. As investors, our task is to stay updated to what is happening, and make decisions based on sound analysis rather than fear or hype. - The Team at Altos Trading In the next article: In a surprising turn of events, the world's major central banks are diverging in their monetary policies, creating a complex global economic landscape. Sponsor Unlock Tesla's Profit Secret: Target 100% Gains Weekly? If you could only trade ONE ticker for the rest of your life… What would it be? MSFT? AAPL?AMZN? For me, it’s hard to say…But for top trader -Lance Ippolito- he’s ALL IN on [TSLA…]( That’s because it’s given folks like us a shot to target money-doubling returns every six days. 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Canada and Europe Take the Lead in Rate Cuts The Bank of Canada (BOC) made headlines as the first G7 central bank to cut rates, lowering their overnight policy rate to 4.75%. This move followed a series of rate hikes in 2022 and early 2023 to combat rising inflation. With CPI now below 3%, the BOC anticipates further cuts if this trend continues. The European Central Bank (ECB) followed suit, cutting its deposit facility rate to 3.75%. This marked the ECB's first rate cut since 2019 and a significant departure from their previous tightening measures. Despite this easing, the ECB remains vigilant, as recent inflation data and projections suggest a slower-than-expected return to their target rate. The Fed and the BOE: Holding Steady Amidst Uncertainty In contrast, the US Federal Reserve (Fed) and the Bank of England (BOE) have maintained their current rates due to persistent inflation concerns. Both central banks are closely monitoring economic data, with the Fed expected to provide an updated economic outlook and potential rate cut projections in their upcoming meeting. The BOE faces the added challenge of balancing high inflation with a looming general election. While hopes of a pre-election rate cut have diminished, the BOE's decisions will undoubtedly be closely scrutinized in the coming months. Japan: A Different Path in a Tightening World Japan's central bank, the BOJ, has taken a unique path compared to its G7 counterparts. After years of easy monetary policy and negative interest rates, the BOJ recently raised its policy rate and is considering further tightening measures. This shift aims to address rising bond yields and a weakening yen, but also signals a potential change in Japan's long-standing approach to monetary policy. Easing and Tightening Simultaneously Interestingly, both the BOC and the ECB continue to pursue quantitative tightening (QT) alongside their rate cuts. This seemingly contradictory approach reflects the delicate balance central banks face in managing inflation while supporting economic growth. The Road Ahead: A Global Monetary Policy Puzzle The divergence in global monetary policies underscores the complexities of navigating a post-pandemic economic landscape. With each central bank facing unique challenges and priorities, the path to price stability and sustainable growth remains uncertain. As investors and observers, we can only watch closely as these powerful institutions chart their courses through uncharted waters. Sponsor [New Customers earn 5.25% APY* (variable)]( Store your money with Cash Reserve, a high-yield account built for peace of mind. New customers earn 5.25% variable APY*—that’s 13x higher than the national savings rate. ** Plus, your money’s FDIC-insured up to $2M†at our program banks and no limits on withdrawals and transfers. **The national average savings account interest rate is reported by the FDIC (as of 5/15/23) as the average annual percentage yield (APY) for savings accounts with deposits under $100,000. [Sign Up Now!]( Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. 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Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA [Unsubscribe]( | [Change Subscriber Options](