U.S. Credit Downgrade Could Push the S&P 500 up 16%

Folks, this story is front-page news... But in case you missed it, Fitch Ratings just downgraded the U.S. government's credit rating. [Chaikin PowerFeed]( U.S. Credit Downgrade Could Push the S&P 500 up 16% By Vic Lederman, editorial director, Chaikin Analytics Folks, this story is front-page news... But in case you missed it, Fitch Ratings just downgraded the U.S. government's credit rating. Fitch's highest credit rating is "AAA." And now, the U.S. is one notch below that at "AA+." Credit-ratings agencies' goofy letter systems always crack me up. But this is serious business... Fitch is basically saying that U.S. debt isn't as safe today as it was in the past. That's a bold claim considering the U.S. literally holds the right to print the world's "reserve currency." And many are seeing this downgrade as a political move. Now, as a rule, I avoid politics as much as possible. The problem is that politicians like to meddle with the markets. And when that happens, it becomes a story for us as investors. Fitch realizes that, too... In its public statement, the company said that it doesn't like our country's growing ratio of debt to gross domestic product. But in reality, I believe this downgrade is almost certainly in response to U.S. politicians using the so-called "debt ceiling" as a political football. Let's sidestep that conversation today, though. The real reason we're all here is investing. And when I saw the news this week, one big question entered my mind... "What does this mean for stocks?" Today, we're going to answer that question... Recommended Links: [Can Kevin Kisner collect $4,000 in 60 seconds?]( This morning, we're airing a Real Money Demo. A professional athlete will attempt to collect $4,000 in 60 seconds by selling put options. Will he succeed? Or lose money? [Watch his transaction on Costco (COST) and find out]( – including how to begin using this strategy yourself. [BREAKING NEWS: "3,050% Currency Trade" Just Went Live]( Days ago, the Fed released a new money platform that will be adopted by the U.S. Treasury, Social Security, and more, opening the ground floor of an investment we may never see again in our lifetimes. [Click here for the full details]( (including a free recommendation). If you're a student of economic history, you're likely screaming by now... "This has already happened before." You're right... In August 2011, Standard & Poor's ("S&P") downgraded U.S. debt from its top-notch rating for the first time ever. And it was more direct about the reasoning. The credit-ratings agency said... The downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges. S&P's downgrade came as the U.S. was trying to claw its way out of the 2008 housing crisis. With the move, S&P made itself a political target. Just about everyone on Capitol Hill made a point of voicing their displeasure with the company in the ensuing days. Well, in the end, it didn't matter all that much. You see, the S&P 500 Index was up roughly 16% a year later. Take a look... [Chaikin PowerFeed] Was this a volatility-free era? Absolutely not. Remember, like today, the U.S. was coming out of a major economic upheaval. Despite that, the market marched on. And not long after S&P's credit downgrade, the talking point became stale. Of course, we don't know that the market will soar from here. After all, as Chaikin Analytics founder Marc Chaikin loves to point out, we're not crystal-ball readers. But Marc and our other colleagues have also noted all the "bullish" signs in the market. And based on history, this credit downgrade might be yet another positive for investors... That might sound crazy at first. It's hard to imagine stocks rising after seemingly bad news. But I wouldn't be surprised if the S&P 500 marched another 16% higher in the coming year. After all, we've seen this playbook before. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.98% 15 12 3 S&P 500 -1.37% 188 249 62 Nasdaq -2.19% 57 35 7 Small Caps -1.36% 630 967 343 Bonds -1.04% — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish.. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Communication +0.73% Energy -0.24% Staples -0.50% Industrials -0.76% Information Technology -1.05% Materials -1.11% Financial -1.55% Health Care -1.66% Discretionary -1.73% Real Estate -2.22% Utilities -3.14% * * * * Industry Focus Mining Services 6 19 8 Over the past 6 months, the Mining subsector (XME) has underperformed the S&P 500 by -19.51%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #17 of 21 subsectors and has moved down 1 slot over the past week. Indicative Stocks [rating] CDE Coeur Mining, Inc. [rating] NEM Newmont Corporation [rating] AA Alcoa Corporation * * * * Top Movers Gainers [rating] WAT +6.33% [rating] AFL +5.73% [rating] AIZ +5.72% [rating] HUM +5.53% [rating] CDW +5.16% Losers [rating] GNRC -24.40% [rating] PAYC -19.19% [rating] SEDG -18.36% [rating] JCI -9.25% [rating] BWA -7.51% * * * * Earnings Report Reporting Today Rating Before Open After Close BDX, CI, CMI, TFX, EPAM, HSIC, IRM, VMC, MAR AAPL, WDC, AMZN, RMD, BKNG, CPT, HII, DVA, FTNT TRMB, TRGP, WBD, WRK, XRAY, PNW, REGN, PWR, APD, OGN, K, HAS, COP, BALL MRO, AMGN, VTR, SYK, APA, REG, PAYC, APTV, MTCH, MSI, EXPE, MRNA, MNST, ICE, CTRA, GILD, EXR SO, SRE, PPL AEE, PARA, LNT, ED, BIO No earnings reporting today. Earnings Surprises [rating] U Unity Software Inc. Q2 $0.06 Beat by $0.09 [rating] DASH DoorDash, Inc. Q2 $0.49 Beat by $0.21 [rating] ALB Albemarle Corporation Q2 $7.33 Beat by $2.81 [rating] BLDR Builders FirstSource, Inc. Q2 $3.89 Beat by $1.30 [rating] CLX The Clorox Company Q4 $1.67 Beat by $0.49 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2023 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. 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