U.S. Economy Is in Grave Danger Without Stimulus - Goldman Sachs

[Option Beast]( 09/28/2020   |   [View in browser]( --------------------------------------------------------------- [U.S. Economy Is in Grave Danger Without Stimulus - Goldman Sachs]( The economic recovery is set to stall. That's the view of Goldman Sachs, who sees the lack of further stimulus as holding the economy back. The investment bank cut its growth forecast from 4% to 2%. [More...]( SPONSORED CONTENT [This Money Trade Appears Between 9:30-10:45am Almost Every Day...]( If all you did was focus on this one simple trade you could make between $300-$1,100 per contract each day you trade. Don't make trading harder than it has to be. Keep it simple and walk away with daily profits. Get your free guide that shows you how to spot this, and when to enter & exit. [CLICK HERE for instant access.]( [REFLECTIONS... What's a Snowflake?? By David Sager](#) Snowflake was the big story last week, 'big' in every way. Snowflake exploded on the scene this past Wednesday (9-16) as the biggest IPO of the software industry. The original target for the IPO was $75.00 to $85.00, before the offering. As pressure mounted on obtaining shares (tremendously oversubscribed), Snowflake and the investment bankers settled on an offering price of $120.00. At the onset the demand was so intense that it drove the price to a peak this past week to $315.00, finally finishing the day near $240.00, (Wednesday, 9-16). That price gave Snowflake a market cap of $65 billion, or 110 times the companies $617 million in revenue for 2021; ( that is sales, not earnings, of which there are none)! By Thursday's close the stock had fallen back to $227.54, still a gain of more than $100.00 for investors lucky to have received an IPO allocation. Even Warren Buffett's Berkshire Hathaway participated. Digesting the indexes this past week shows some uncertainty, however we are perched on a fairly solid foundation, and confidences are still very positive, even with several down weeks due in part to the 'big' techs and their robust swings. The Dow Jones Industrial Average was off slightly, or .04% to 27657, while the S & P 500 gave away 0.64% to 3319. And the relatively growth-heavy Nasdaq Composite with heavy weighted technology and health-care stocks dropped 0.56% to 10793. These averages have weathered much profit taking along the way, and still have not faltered greatly. The cyclical out-paced performance is showing up in other markets. Copper prices rose 2.62% this past week, to $3.11 a pound, while gold ticked up 0.7% to $1.952.10 an ounce. Lumber also chimed in, hitting a 2-year high, up 50% since April. The recent spike in lumber prices in the U.S. has no doubt been exacerbated by the lumber tariffs averaging more than 20% on Canadian imports into the U.S. markets. The Trump Administration will begin banning downloads and the use of popular Chinese owned apps TicTok and WeChat late Sunday, in a move U.S. officials said was driven by national-security concerns. The Commerce department issued the orders Friday barring U.S. companies from providing downloads or updates for TicTok and WeChat apps, at 11:59 on Sunday. "Each collects vast swaths of data from users, including network activity, location data, and search histories," the Commerce Department said. "Each is an active participant in China's civil-military fusion and is subject to mandatory cooperation with the intelligence services" of the Chinese Communist Party. The Commerce Department said it would allow U.S. companies to continue providing web-hosting services for TicTok through Niov. 12, granting more time for talks with its Chinese owner, ByteDance Ltd. and Oracle Corp. to create a new U.S.-based owner of the video-sharing app. Such a deal would allow the app, a fixture on millions of American teens' smartphones. There seems to be hope that cooperation is ahead as Trump is willing to 'discuss' a fast solution. The Oily Mess continues.....Over supply adds to a grim oil outlook, as it is taking longer to 'drain' the storage tanks. Many analysts initially thought demand would smooth out with production adjustments and less demand. The equation is not that simple, as the world is dealing with a massive and stubborn pandemic, one that has disrupted every aspect of 'just plain living.' Global inventories of crude have declined by 45 million barrels in August after a 34 million reduction in July. Estimates now expect oil demand to slowly recover in the second quarter of 2021 as the nation slowly slugs its way back. That is based on many factors, the biggest of which is the control of Covid-19. RUMBLINGS ON THE STREET Jerome Powell, Federal Reserve Chairman, after a rate setting meeting, Barron's "Effectively, we're saying rates will remain highly accommodative until the economy is far along in it's recovery." Chris Dyer, director of Global Equity for Eaton Vance and manager of the Calvert International Equity fund, Barron's "A recovery favors more value-oriented cyclical markets." Dave Ellison, a manager of the Hennessy Large Cap Financial fund, Barron's Mr. Ellison has shifted his portfolio away from traditional financial-services stocks into the payments and financial-technology, or fintech, space. "Those companies are positioned to continue to grow and take share in an industry where the alternatives are becoming less attractive," he says. Ellison, a long time investor in bank stocks, says that he has soured on financial-services models that rely on deposits and lending. "I like the companies that are moving money around, rather than buying and selling money," Ellison says. "Big tech will continue to poke at payments. They all have the ability to write the code and do the algorithms. If you're a small or midsize bank, you have no chance." Jeffery Sloan, Global Payments CEO, Barron's The company recently partnered with Amazon SWeb Services to distribute and sell payment services on a cloud-based platform. "We and Amazon are tied at the hip," says Sloan. "We think the partnership triples the size of our addressable market.," We're in a healthier place than we could have imagined," Sloan says. "We're seeing a continual recovery, and we haven't seen any impact from hot spots in the U.S. or markets globally that are open." [15 Cheap Dividend Stocks Under $15]( Many investors look at expensive stocks like Amazon.com (AMZN) or Google parent Alphabet (GOOGL), and they wonder why they should bother with an investment so pricey they can only buy one or two shares. Instead, they target cheap stocks they can buy for just $20, $15, $10 ... or even less. If you're looking for cheap dividend stocks and frustrated by the lack of options, check out the following list of 15 picks under $15. All are cheap dividend stocks that offer 3% yields or better at current prices, and have a decent amount of potential despite their relatively low profiles. [Article continues...]( [Should You Use Installment Plans Like Afterpay?]( INSTALLMENT PLANS, WITH names like Afterpay, Klarna and Affirm, have become popular in recent years - and will probably gain more favor as the pandemic economy rages on. So is there good reason for the popularity? And is this a payment method you should try? Only you can decide that, but here are answers to common questions about installment plans. [Click to continue reading this article...]( [The Coming 5G Boom Is Not Fully Priced in These 2 Stocks]( 5G, first introduced two years ago, is expanding past its initial phases and has reached the edge of a great boom. There are 105 5G networks worldwide, and device manufacturers have released over 160 5G smartphones, tablets, and other products onto the commercial market - and there are over 230 million 5G subscribers worldwide. The new tech is here, and it's ready to expand. The expansion and benefits of 5G have attracted attention from some of Wall Street's high-rated analysts; specifically, it has directed the analysts' attention to the companies that will build and maintain 5G as it expands. These are stocks that are sure to benefit from the network tech, and 5-star analysts say that now - before 5G becomes ubiquitous - is the time to buy in. [More here...]( SPONSORED CONTENT [Do You Have Zero Experience Trading?]( Quick!....get this free e-book that was designed to teach beginners how to trade options while you still can. Want to start trading with a small account? Got you covered on that also. Chuck Hughes has taught thousands of beginners how to be successful in trading. [Click here to get the e-book while you still can.]( --------------------------------------------------------------- [Option Beast]( Send this to a Friend. [Click here.]( | Not a Subscriber Yet? [Click here.]( All content © 2020 Option Beast Neptune Ave, 300 Main Street #711, Madison, NJ 07940 USA Welcome to Option Beast, an e-mail service that replaces many of our previous alerts. We hope you enjoy it. If you do not wish to receive this email service, please [click here to unsubscribe](. [Privacy Policy]( ---------------------------------------------------------------