Y2K All Over Again (Cybersecurity Meltdown 2024)

Your tech stocks could be in for a shock… Published By Money & Markets, LLC. July 22, 2024 Published By Money & Markets, LLC. July 22, 2024 [Turn Your Images On] Money & Markets Daily: The 5 It's impossible to keep up with everything going on in financial markets and the economy these days. That's where "The 5" comes in… Let's start your week off right by exploring the most significant trends and opportunities you need to know now. --------------------------------------------------------------- 1. “Have you tried turning it off and on again?” Cybersecurity giant Crowdstrike Holdings Inc. (Nasdaq: CRWD) saw its worst nightmares come true on Friday when a flawed software update shut down networks and computer systems all over the world. All flights from several major carriers were grounded, bank accounts were digitally frozen, and business ground to a halt as the company scrambled to issue a fix. Workers on the ground did everything they could to keep operations running, with one Indian airline going so far as to issue handwritten boarding passes to passengers: [Turn Your Images On] Global system outages forced ticket agents to go “old school” with handwritten boarding passes. This is precisely the type of outage that cybersecurity companies are supposed to prevent. It’s the kind of attack most hackers could only dream of pulling off, and CRWD blundered into it. According to Money & Markets Chief Analyst Matt Clark, this critical failure will have a lasting impact on the sector: “Businesses impacted by the outage are going to give serious thought to how their cybersecurity infrastructure is built.” And we’re already seeing its impact on share prices… --------------------------------------------------------------- [Turn Your Images On]( [“Titan of Tech” Bets Big on Tiny AI Company]( He’s made as much as 3,250,000% in just three years on companies like Facebook, Airbnb, and PayPal…  But our research shows his latest investment could be his most successful venture yet.  [See how you can invest alongside him]( (with a starting stake of just $25).  But you’ll want to do it between now and August 5. --------------------------------------------------------------- 2. Coding “SNAFU” Costs CRWD $8 Billion Investors were quick to punish CRWD following the system crash. By the closing bell on Friday, shares had sunk 11%, wiping out more than $8 billion in market capitalization. Some investors believe CRWD’s hardship could turn into a windfall for its competitors, but Matt urges caution. “This outage didn’t do any favors for the IT sector. Valuations were already high, and we were already seeing a rotation out of Big Tech stocks and into small caps, based on rate cut expectations.” He shared an X-ray of the First Trust Nasdaq Cybersecurity ETF (Nasdaq: CIBR) to illustrate his point. This chart shows the Green Zone Power Ratings (and component factors) for each stock in the ETF: [Turn Your Images On] [(Click here to view larger image.)]( As you can see, there’s quite a bit of red in there. And even the top-rated stocks aren’t breaking above an 80 overall rating. Size, in particular, is a challenging factor, reflecting how bloated many of these stocks have become. Speaking of bloated… 3. History’s Coolest Political Convention Last week saw the Republican National Convention’s blowout, a four-day event featuring Hulk Hogan, UFC founder Dana White, Kid Rock and — of course — former President Donald Trump. It was a star-studded convention with dozens of enthusiastic speakers and a record 92-minute closing speech from newly-christened nominee Trump. That’s almost exactly as long as Dr. Strangelove for those out there keeping score. We’re hoping that next month’s Democratic Convention will be just as exciting. With President Joe Biden stepping out of the race, there's a good chance it will be. Vice President Kamala Harris is the current favorite to face off against Trump — but she's not a shoo-in. Other contenders like California Governor Gavin Newsom could make a strong case for the candidacy… Maybe they’ll get Stone Cold Steve Austin to announce the winner with a cold one in hand? However this shakes out, we’ll keep a close eye on this hotly contested election and update you on how it will inevitably affect your portfolio… 4. Worst Week in TWO YEARS for "Mag 7" Tech Stocks Mega-cap "Magnificent Seven" tech stocks took a staggering $1.1 trillion hit in market capitalization over the last week. Paid-up Green Zone Fortunes subscribers will already know that Adam O’Dell predicted this to be “The Most Important Week of 2024” due to news that inflation is finally cooling. “There’s a three-step chain of logic going on here,” Adam explains… Step No. 1: The latest data shows inflation cooled to its slowest pace since 2021. This suggests it’s now far more likely that… “Step No. 2: The Federal Reserve will begin interest rate cuts as soon as September. And in turn, that suggests… “Step No. 3: Small-cap stocks are about to get the “rocket fuel” (rate cuts) that will propel them considerably higher (and lead them to outperform large-cap stocks). Indeed, several of Adam’s small-cap recommendations have seen serious gains over the last week. He plans to lean even further into this powerful trend after tomorrow’s Wealth Multiplier Summit (don’t forget to [lock in your invitation HERE](. --------------------------------------------------------------- [Turn Your Images On]( [This One Hidden Anomaly Has The Power To Unlock The Biggest Stock Gains]( Adam O’Dell cracked the code to unlocking the biggest gains in the stock market today by taking advantage of a hidden anomaly. On Tuesday, July 23, at 1 p.m. ET he will be revealing how to tap into its wealth multiplying potential and go for huge profits month after month. [Secure your spot here.]( Click the link above to automatically register for The Wealth Multiplier Summit. By reserving your spot, you will receive event updates and offers. We will not share your email address with anyone. And you can opt out at any time. [Privacy Policy](. --------------------------------------------------------------- 5. It’s Hot Fed Summer In [last week’s "The 5,"]( we mentioned that Fed officials had several upcoming speaking engagements and that we’d be paying close attention to their language and phrasing. Fed officials are known for frequently using doublespeak and vague terms to hint at possible changes in policy. But this week, Fed Chair Jerome Powell cut right to the chase — telling investors that he wouldn’t wait for inflation to drop below 2% before he started issuing cuts. That 2% number is, of course, the Fed’s mandated inflation target. And with inflation now hovering at 3%, Powell is essentially telling the market to expect a rate cut before the end of summer in September. This is great news for stocks (especially small caps). Stay tuned for more insights as the situation develops… — Money & Markets Team Click the link above to automatically register for The Wealth Multiplier Summit. By reserving your spot, you will receive event updates and offers. We will not share your email address with anyone. And you can opt out at any time. [Privacy Policy](. --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [RETIRE FROM JUST ONE INVESTMENT]( - [POLL RESULTS + A "STRONG BULLISH" STOCK OUTPACING THE S&P 500]( - [ONE REASON AI STOCKS HAVE HIT A WALL NOW]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](