A wild card day for trading

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, A wild card day for trading Today’s trading will be a wild card after the attempted assassination of Donald Trump rocked the nation. The futures were little changed, but Bitcoin’s price action stood out. The cryptocurrency jumped by about 4% after the incident. However, Oliver Pursche at Wealthspire Advisors believes that the market will remain focused on the fundamentals — such as corporate earnings. - “Not reacting may prove to be the smartest thing you can do,” said Oliver Pursche at Wealthspire Advisors. - “Markets will find their equilibrium and get back to the things that matter from an investment perspective, which are economic growth, monetary and fiscal policy and corporate earnings.” Oliver Pursche at Wealthspire Advisors (Photo: Wealthspire Advisors) However, there were signs that investors boosted the odds of a Trump victory during the November election. For example, Trump is expected to go for looser fiscal policy and higher tariffs which could boost the dollar. The former president’s embrace of cryptocurrency may have led Bitcoin’s price to jump. The question is how much Wall Street has already priced in a Trump victory. - “As shocking as this stuff is, violence in our country and around the world due to terrorism is a regular thing that we all face. We would have to say that the market is effectively focused on fundamentals. It would appear to be that where we were on Friday before this happened on Saturday, that we’re basically in the same spot,” said John Stoltzfus, chief investment strategist at Oppenheimer Asset Management. The earnings season will continue this week. The expectations are high. It will be critical for companies to meet them if the rally were to keep going. In fact, analysts expect the S&P 500 to post a 9.3% gain in profit over the prior-year period. It’d be the biggest growth since the final quarter of 2021. More big banks will report earnings, such as Goldman Sachs, BlackRock, Bank of America, Morgan Stanely, and PNC. Other companies that will report results include UnitedHealth, Johnson & Johnson, Netflix, and TSMC. An Early Bet on the New (and Growing) Industry Today’s Stock Pick: Hydrofarm Holdings Group, Inc. (HYFM) Water shortage? That’s hard to believe. We have vast oceans that look like an almost unlimited supply of water. But water shortage is becoming a severe problem. Farming will get hit the hardest from the drought because it uses 80% of consumptive water use in the U.S. For example, up to 90% of the water used in Utah goes to agriculture, according to The Salt Lake Tribune. Here are two major shifts that could impact the future of agriculture: - The global population is growing. The World Economic Forum wrote that we will face a food shortage of 56% by 2050 at current production levels. This assumes that rising global temperatures don’t make any more of the current farmlands impossible to grow. (Source: World Economic Forum) 1. What’s more, fresh water is becoming increasingly scarce. For example, Lake Mead has fallen below its 2001 baseline. Arizona could be faced with weighing the water needed for their farmers against the water needed for their residents, according to NBC News. (Source: Getty Images) What about salt water? It is costly to treat sea water, costing about $2,000 to $3,300 per acre foot. So, what’s the solution? Enter hydroponics. It is a type of “hydroculture” where you can grow crops without soil by using mineral nutrient solutions. In short, you need far less water than normal. - Case in point: To grow 2.2 lb pounds of tomatoes using intensive farming methods requires 400 liters of water, but you only need 70 liters of water when using hydroponics -- or 82.5 percent less. Because hydroponics requires less water, it is quickly becoming the agricultural solution for regions in harsh environments with little access to water. (Photo: Humboldt Hydro Farms) Today’s stock pick, Hydrofarm Holdings Group, is the company that manufactures hydroponics products such as lighting equipment, climate control devices, garden accessories, and other related products. Chairman and CEO Bill Toler believes this is just the beginning for the hydroponics industry: - “It's a market that we believe is in the early innings of a sustainable and significant growth curve, brought on by a broad-based increase in home hydroponic gardening, ongoing domestic legislative approvals related to cannabis and advances in innovation, technology and brand strength within the category.” Hydrofarm’s strategy of creating its own product lines boosts profits. Recently, the company launched GroStar, its in-house brand. They also released new products for multiple brands like Autopilot, Plant Success, Rock Nutrients and Roots Organics. Lastly, they closed on acquiring HEAVY 16 fertilizer, which comes with the bonus of more recurring revenue. Their efforts to build proprietary brands is paying off. Adjusted gross profit margins improved to 23.4% in the first quarter of 2024. Bottom Line: Hydrofarm Holdings, Inc. is selling infrastructure and supplies at the heart of the future of agriculture. It is an early-stage play where it could take a while for the industry to mature, but it gives a long-term investor an opportunity to get in early. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](