In today’s episode, the conversation shifts focus to critical economic factors influencing the market today. The discussion takes a turn to tariffs – pulling apart their rippling effects on both U.S. manufacturing and international markets. Drawing from historical parallels in market behavior, including insights from the COVID era, Gundersen offers a forward-looking perspective, shedding light on the European markets’ current performance. As they address challenges such as policy volatility and economic indicators, Bill Gundersen stresses the importance of clear-headed decision-making in turbulent times and gives a sneak peek into the considerations for future stock moves.
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, TheStreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 02 :
And welcome to the Friday, thank goodness it’s Friday, March 7th version of the Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. I’m here with Barry Kite, our chartered financial analyst. And we do have a little green on the screen for a change here. But I will say that the Friday pattern recently has been rally in the morning, sell off in the afternoon. We’ll see if that holds true. But as of now, the Dow is up 81 points. 42,660. Of course, that’s a small consolation to some of the big sell-offs we’ve had in the Dow this week. The NASDAQ’s up 84, which again is a small consolation. It’s up about a half a percent. 18,156 on the NASDAQ. S&P’s up 15 points to 5,754. The Russell 2000 is up 8 points. Ugly charts are on those small cap stocks and on the Nasdaq. Russell 2000 up about 40 basis points here so far this morning. We have interest rates up a little bit today after a weak jobs report. The 10-year now is actually down a little bit now. Okay, it’s moving around. It’s volatile, 4.26%. is where the 10-year is, and Bitcoin is up $366,000 to $90,612. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management, and thank goodness it’s Friday. It takes on a whole new meaning these days, Barry, in the market. You’re glad to see Friday come along. It’s been quite a week in the market. The Dow was down 486 yesterday. I want to say it was down about 1,700 points in a three-day span there. And yesterday was particularly ugly as a lot of technical levels, individual technical levels, broke down yesterday, including NVIDIA. And, you know, I’ve always said I make a lot of small decisions throughout the day. And sometimes a lot of small decisions end up being a fairly big decision. And, you know, that is just the way I do things. I’m very methodical. And I have those lines in the sand. We put out – do we have Barry here? I don’t hear him. Oh, yeah. Oh, okay.
SPEAKER 03 :
All right. I thought maybe he had, like, been kidnapped or something. You had plenty to say after this week, so I didn’t want to – Yeah, okay. No. Okay. Well, let’s do a little history. Back on January – I’m interested.
SPEAKER 02 :
Yeah, back on January 6th of 2023, we put an all-out buy signal on the NASDAQ. The P.E. ratio was 20. The NASDAQ was putting in a very good solid bottoming position there. And we had a very big buy signal on the NASDAQ that we wrote about in Seeking Alpha back on January, early January of 2023. This is now fast forward two years. and two months and we have a little different situation the pe has gone from 20 to 35 on the nasdaq and all of a sudden you know we have all of this turbulence coming about with a regime change and uh we have a i’ve warned that we’ve had a very high valuation on the markets and We had the big run after Trump got elected. That’s all gone now, by the way. It’s all reverted back to where it was when he got elected. The NASDAQ is now in the midst of about an 11%, 12% correction. The tech stocks a little bit more than that. Remember, the NASDAQ is not 100% tech. It has quite a few non-tech stocks in it, too. If you just separate out the tech, they’re down about 12%, 13% from their high in December. The AI, however, over the last three weeks, I measure this by the ETF WISE, W-I-S-E. which is an AI-focused ETF. It’s down 21% in three weeks, Barry. And I can remember the day it started is when Palantir, that memo was discovered about the defense spending cutting, which has not materialized yet, but that started the sell-off and the panic in the AI stocks. and not even a good report from NVIDIA could rescue the NASDAQ. The NASDAQ closed below its 200-day moving average for the first time. I have to look, but I believe that’s the first time it’s done that since that January 2023 buy signal we put out on the NASDAQ, and I consider a break below the 200-day moving average on any stock or any index to be a very bearish development. That is long-term support. It’s considered long-term support. So anyways, that’s how we come into this day today. The tech stocks got trashed again yesterday on tariff fears, and weak earnings from Marvell. Today we’ve got a little bit of a rally in tech. We had strong earnings from Avago. I still call it Avago, but it’s actually AVGO. What’s the name of it now? They bought that big chip company. I can’t think of the name of it right now. I always knew it as Avago. All right. It’s – Not Broadcom. Vago is Broadcom, yes. They bought Broadcom to become kind of a U.S. company. And that’s how they got the AVGO symbol.
SPEAKER 01 :
Yes.
SPEAKER 02 :
Right, yeah. And they’re really – most of their business is done in Singapore. But, of course, Broadcom is a California-based company. It’s lifting the NASDAQ a little bit, but I don’t know that one stock like Broadcom, which is not the biggest significant player, can lift the entire NASDAQ on its shoulders. So I think that that break below the 200-day moving average It was pretty bearish development. Now we’ve got to see where it goes from here. I’ll have a lot to say about it in tomorrow’s newsletter. I was up very early this morning. I sent out several messages, several analysis-type emails of the NASDAQ, the Dow, the Russell 2000, and some individual stocks. So anyways, we’re in the midst of a 10.4% correction in the NASDAQ. If you separate out the tech stocks, it’s 12% to 13%. And the AI sector down 21.4% over the last three weeks. And I think it’s all about tariffs for the most part. And, you know, Barry, one thing about the tariff policy, it’s been very volatile. They’re on. They’re off. They’re on. They’re off. And I think, you know, in a way, the market has just said, we’re just going to stand on the sidelines until we figure out. The market likes to know policy. It likes to know policy, right?
SPEAKER 01 :
And I think of it as, you know, and in our earnings estimates that we use, you know, that you use for the S&P, or a collection, right, of different analysts and your own thoughts. And when you look at, you know, if you were having a revenue model or earnings model for one of these, you know, auto companies, I don’t see how, you know, what some of these fields, right, that you would fill in for an earnings projection. I just don’t see what you would even put in there.
SPEAKER 02 :
Yeah, it’s very difficult.
SPEAKER 01 :
Makes it hard to… It reminds me of the COVID era where you had those times, remember, where all the companies took away their guidance. We’re not going to guide for this. It’s like, okay, well, what do we put in?
SPEAKER 02 :
And to your point, I mean, while Scott Besson, our new Treasury Secretary from Charleston, says that he doesn’t see tariffs affecting earnings, I see Boeing’s CEO totally disagrees with him as he this morning said, you know, we get a lot of parts from Canada and we have a lot of uncertainty right now about our supply chain and what our costs are going to be. So there’s two sides to this. I think it is kind of on a company by company basis. I think there’s a lot of companies that will have no impact whatsoever But I would say there’s more companies than not that all of a sudden have a question mark over them as to what impact the tariffs will have on them and on their suppliers.
SPEAKER 01 :
Well, and CEOs want some clarity before they can say, hey, let’s go ahead with this investment project or build the new plant or build the plant here or there, right? I mean, there’s a lot of moving parts. And what happens when there’s a bunch of moving parts is people freeze up and don’t make a decision at all.
SPEAKER 02 :
Right, exactly, and that’s what’s going on right now. The non-farm payrolls were fairly solid, but 151 is not exactly robust. That’s how many non-farm jobs were created compared with 125,000 in January. The consensus was 160,000. But you’ve got to say that the labor market is still fairly strong, even though the government labor market, the layoffs there have tripled here recently. Employment trended up in health care, financial activities, transportation, and warehousing. So, you know, overall, a decent jobs report. And yesterday’s… The initial jobless claims report was certainly okay also. So at least right now we’re not seeing anything out there, but the market certainly is. What is the market seeing? The market is forward-looking. We’ll be right back. And welcome back to the second quarter of today’s Best Docs Now show. Well, the market is looking ahead. It’s a forward-looking vehicle. You learned that at no time in my 25 years in the business was that more evident than March of 2020 during the COVID year when things were absolutely the worst. The market started taking off way in advance of, you know, the economy getting back on its feet. Because the earnings picture looked so good back then. Now the market’s looking ahead and it doesn’t like what it sees, at least as of now. And it obviously, I’m just going to say that it sees the possibility of a recession rising. I’ve seen probably more weak reports, layoffs, not horrible, right? And even, you know, that Atlanta Fed thing was a shocker to me last week. with their predicting this quarter that we’re currently in to be negative by 3.5%, 3.8% GDP. Now, by comparison, okay, we talked about the rotation that’s taking place in the market. Europe is having another good day. It’s hitting another new high. I look at VGK there, which is a European ETF. Europe’s GDP is expected to expand 1.2%. year-over-year so there’s another reason i mean they don’t have the political turmoil that we have right now reason number one reason number two those markets have been left behind for the last five to ten years number two the multiple is much cheaper Number four, they’re lowering interest rates. So the market likes easy money and that’s why you’re seeing that inflow into Europe. I think the best proxy stock to look at would be Siemens, S-I-E-G-Y. which is a big German conglomerate.
SPEAKER 01 :
They’re making a big investment here.
SPEAKER 02 :
Yeah, they’re building a plant here. I can’t remember where it was. I have that news in a little bit here. So anyways, now we may see some rate cuts here. It’s the inflation fear. If the Fed’s going to step back and say, no, we want to see a little more stable policy right now on the tariff front, But Feds Waller sees two or three rate cuts possible this year, which would help as long as they don’t kick inflation. And Jerome Powell is going to speak later today. We’ll hear what he has to say. He could move the markets a little bit. I don’t know what time he’s speaking. I think around 1 o’clock or so. And that could help a little bit. But right now the European markets are outperforming U.S. markets by a long shot. While many European stocks are hitting new highs, which most of them are not buyable on a big scale because most of them trade on the pink sheets. So you have to look at that volume, the average daily volume first. Sometimes, Barry, I’ll queue up a buy and I’ll see how many shares it adds up to. For instance, I was going to buy a stock the other day, and I think it added up to 60,000 shares, and I looked at the volume of average daily volume was like 100,000 shares. I would have been 60% of the volume. I can’t do that. I mean, that would move a stock too much, and if I ever wanted to get out of it, I’d have the same problem getting out. For the most part, my hands aren’t tied too much. But there are cases where there’s been some good stocks that I’ve wanted to buy.
SPEAKER 01 :
Just not domiciled here with an ADR or something.
SPEAKER 02 :
Yeah. But some of those pink sheet stocks like the Chinese BYD, it trades plenty of shares. So it just depends. It’s on a case-by-case basis. But Europe’s especially hard to invest in. Trump delays Canada and Mexico tariffs until April the 2nd. Okay, so this is one of the problems. The tariffs are on, the tariffs are off, the tariffs are on, the tariffs are off. And the market, if there’s one thing the market does not like, is uncertainty. And not only is it looking ahead to possible slowdown in the economy, but it’s also looking at this current uncertainty and saying, you know, we’ll just park some money in Europe. Now, some of these hedge funds and whatnot, they have more access to overseas markets and whatnot than like we do at Schwab, just because they can trade on the foreign markets where we can’t really do that here in the U.S.,
SPEAKER 01 :
Some countries make you have essentially a trader in dollars out in the country to make those moves.
SPEAKER 02 :
If you’re willing to go to Frankfurt, we’ll start trading that German market, Barry. You can park yourself over there until Oktoberfest, and we’ll just play Europe the rest of the year. Besant dismisses tariff inflation fears. And Besson said he’s not even watching the market. He’s focused on driving down the 10-year right now, and he doesn’t seem to be worried about inflation. Okay, that’s Besson. That’s our Treasury Secretary. But as I said, Boeing CEO Kelly Ortberg told employees the tariffs imposed this week by the Trump administration risk driving up costs for certain parts purchased from Canada, such as landing gear, I think it does leave the landing gear off and cause broader disruptions to supply chains. Ortberg said his biggest concern is tariffs turning into a continuity of supply issue that could prove really, really expensive for us. If it’s really, really expensive for Boeing, that means prices go up. He says if the U.S. tariffs are enforced, adding 25% to the cost of doing business for large aerospace manufacturers such as Boeing, their ability to pass the cost on to airline customers will be limited. So in a lot of cases, you know, the companies absorb. Either they don’t buy the product, which then Canada absorbs the cost of not being able to sell the product, shopping around for cheaper products elsewhere, or the company has to absorb the cost. So that’s the kind of way it looks. Boeing shares have tumbled 13.5% in the last month. So that’s not good. China’s trade surplus surpasses forecasts. Exports grow by 2.3% and imports shrink. So China continues to, you know, their trade gap is very favorable in their favor. And that’s one thing that gets into Trump’s craw, and it should. I mean, there’s no reason why. We have such a huge trade deficit here in the U.S. The U.S. plans to levy fees on China-linked ships and pushes allies to do the same. So you see one of these freighters coming into the Charleston Harbor where we normally have six, four to six freighters.
SPEAKER 01 :
Usually packed out, yeah.
SPEAKER 02 :
U.S. tends to charge fees of up to $1.5 million per ship just for docking at its port on any ship that is a part of a fleet containing Chinese-built or Chinese-flagged vessels. The draft executive order is an attempt by the Trump administration to boost domestic shipbuilding and reduce China’s hold on the global shipping industry. Thank you. So the intent is good, but obviously it creates a lot of disruption in the markets. We’ll be right back.
SPEAKER 07 :
This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show.
SPEAKER 02 :
Now, back to the second half of the show.
SPEAKER 07 :
And welcome back here to the second half of today’s Best Docs Now show.
SPEAKER 02 :
Wow, I looked at a few charts here during the break. Boeing’s chart looks terrible, Barry. It is breaking down big time. We don’t own Boeing. Boeing has had a rough time of it the last several years, haven’t they? Boeing was up to 188, and it was hitting a new 52-week high just three weeks ago. So you’ve got to tie this to the tariff tantrums that are going on because that kind of coincides. The sell-off in Boeing from 188 down to 153, that’s a 16% sell-off. coincides with the tariff talk, and I would say that the AI 21% sell-off uh… can be attributed to the tariffs and also some news you know the news from uh… uh… from uh… you know the uh… the software stock that all of a sudden uh… was in trouble the biggest winner palantir and of course nvidia had strong earnings but it just wasn’t enough uh… nvidia broke below its long-term support uh… i sent out a uh… a message uh… this morning we had We had. We no longer own NVIDIA, but we took some big profits in NVIDIA yesterday. In the ultra-growth portfolio, we were up 531%.
SPEAKER 01 :
Well, and thankfully, trimmed some along the way, too, just because of the name. We did that, too. I mean, we owned it for over two years. January 18, 2023.
SPEAKER 02 :
Soon after that buy on the NASDAQ, that was one of our biggest, first big buys. We bought it at $17 a share. 1748, we sold it yesterday for $110.41. Then I added it to the Premier Growth Portfolio a little bit after that.
SPEAKER 01 :
Isn’t that early March? Let’s see.
SPEAKER 02 :
We did that on March 3rd, a couple months later, and I sold that yesterday for a 367% long-term profit. And I also sent out a message this morning as to why we sold it. So I try to teach, too, along the way in this live trading atmosphere that I’ve got going. Why? Why? Okay, there’s reasons. I am very methodical. Barry’s probably learned that over the years.
SPEAKER 01 :
I’m a very methodical. Doesn’t mean we’ll never own it again. There’s a high probability at some point.
SPEAKER 02 :
There’s a high probability that we’ll come down just like we did back in January. You know, it got killed in 2022. And we got out of it then, and then we got back in it in January of 2023. What we’re going through right now reminds me of 2022, very much so. The only difference is the market got way ahead of itself after COVID. 2021, you know, Kathy Woods had her best year ever, blah, blah, blah. By the way, she’s down 25% in the last three weeks.
SPEAKER 1 :
25%.
SPEAKER 02 :
Okay, and her stocks were doing great and everything. And then the Fed went on the warpath. Okay, so it was a different reason. for the big sell-off in 2022. And then when we saw the selling abate early in 2023, it was time to go in with guns blazing. You know, Meta’s up 110%, you know, since then, and others that we bought. But now here we are, you know, over two years later, and we got way ahead of ourselves again. I think the Trump election kind of put a finishing touch. You know, they put a lot of icing on the cake. that maybe didn’t belong there. The cream cheese got a little bit rich there in the valuations and whatnot. And now you’re kind of seeing a sell-off akin to 2022. It’s not as bad yet, but we’re kind of at the 12% to 15% mark, I would say. In 2022, the NASDAQ sold off by 35%. Is there the possibility for that to happen this time? Absolutely. I think there is. Just on fear alone, and if we get a few bad prints in the economy, we have that kind of downside risk. You know what? I don’t feel bad cashing in some big profits yesterday and cutting some losses, right? It depends on when you got in. I mean, if you weren’t with us in January of 2023, you might have got into NVIDIA or Palantir much later on. You may have actually lost money, a little bit of money when I sold it yesterday. But for the most part, we went in with the block trades for everybody who was with us at that time back in january of twenty twenty three okay now having said that is the S&P now a buying opportunity Oppenheimer highlights the 200-day moving average as a key level well it is a key level I just see really weak momentum as the Nasdaq pierced below its 200-day moving average which is considered a pretty important moving average You’ve got weakness right now. And personally, I don’t see a catalyst out there on the horizon that’s all of a sudden going to turn it around.
SPEAKER 01 :
Earnings season is still a way long way off.
SPEAKER 02 :
Number one, number two, the tariffs came off yesterday and it didn’t move the market at all. Number three, interest rates have come down to 4.2%, and it hasn’t helped the market at all. Zelensky’s back at the peace talk tables trying to smoke the peace pipe to end the war. That’s not moving at all. What catalyst would there be right now to all of a sudden send the AI stocks back into orbit? I don’t see it right now, so I think it’s better to be a bit cautious right now with a – big percentage of cash you know our cash hoard has grown it was 60 percent this morning when i looked trump establishes strategic bitcoin reserve i’m not for that idea but it has pushed bitcoin up to close to 90 000 again uh the stargate project which remember that that was the those guys uh talking about the ai and the 500 million or billion they’re going to spend
SPEAKER 01 :
Yeah, that was the one, wasn’t it? It was Altman and then Larry Ellison.
SPEAKER 02 :
From SoftBank and from Oracle. Well, according to, let’s see, who’s putting this out? Oh, Bloomberg. It’s expected to require 64,000 NVIDIA chips. So if it goes through, they might have backed off a little bit, though, because they’ve got to raise the money to put into it, number one. And at the time, Musk said they don’t have the money, which they didn’t. They’re hoping to raise the money to spend it and invest it into AI. But I’ve got to believe that there’s a lot of private equity investors that are a little skittish right now. Wedbush goes all in on Tesla. Well, you know, I just say good luck with that. You know, Kathy Woods is down 25% over the last three weeks. Three weeks. Tesla has gone from 439 to 258. 439 to 258. If you do the math on that, that’s not a very good, pretty picture there. Let’s just do the math.
SPEAKER 1 :
439.
SPEAKER 02 :
Usually I can do it in my head, but I’ve got so many numbers in my head. Down to 258. That is a correction of 40% on Tesla. We sold Tesla quite a ways back. I pulled the plug when it dropped below its support level. And I think we might have taken a small loss on Tesla. I’m going to give you the truth, the honest, what those numbers were. We sold Tesla for a 6% loss, all right?
SPEAKER 1 :
6%.
SPEAKER 02 :
That’s palatable. Your stomach doesn’t churn. 40%. And, of course, it’s a big chunk of her ARK funds. And that drove her down 25% in three weeks. Will Tesla turn around? It’s got the wind in its face with China sales crumbling. European sales crumbling. China EV cars invading Europe with a $30,000 price tag. The U.S. appetite, I think the U.S. appetite for EV cars is like a person on Zepbound, you know, their appetite. for a big italian dinner it ain’t there anymore there’s no appetite for tesla and ev cars i just see so i don’t see the catalyst that’s going to turn i have to disagree with wedbush they go all in on tesla obviously they have a huge position their 12-month target price is 550 That would mean it’s got a more than double from here. That’s their 12-month target price. $5.50 is currently at $2.58. Will there be a buying opportunity? Well, you know, Tesla’s vulnerable clear down to $200. That’s where I see the chart landing. It’s at $2.58. So I see further downside risk. TSDD is the inverse of Tesla. I pointed that out in the little class I taught. Wednesday night I was a guest on a class of a friend of mine I met up in New York City. And him and I are collaborating and talking about the first week of April, the first Wednesday of April, Barry, doing a class again and inviting all of our folks from the radio. So he’s looking into the logistics of that. Can Zoom handle such a crowd? We’re going to find out. So anyways, you’ve got to watch those charts. That’s got to be the third leg of the stool you stand on. Otherwise, you’re going to drop off that stool with all the paint all over you and spill paint everywhere. Three legs of the stool. It makes a more sturdy stool. We’ll be right back.
SPEAKER 07 :
We’ll see you next time.
SPEAKER 02 :
And welcome back here to the final segment of today’s Best Stocks Now show. Boy, if you don’t get the newsletter this weekend, there couldn’t be a better weekend to get that thing. 25 years of experience watching charts and markets, et cetera. I’m going to give you my take on this current market. Not only that, you get access to the app and my messages that I send out during the day. I sent out a lot of messages yesterday, obviously. When things are going good, sometimes people don’t need us as much. And when things are rocky, which, yeah, this is the rockiest I’ve seen it in quite some time. I’ve got to go back to 2022 when the Fed was on the rampage. You’ve got to make a lot of clear-headed decisions when something like this is going through the market. And I’ve always said it’s a lot of small decisions. It’s not one great big giant decision. We have stocks that are doing well. Our Chinese holdings, which we haven’t had for about 10 years, are doing quite well. They’re hitting new highs. But the other analogy that I used yesterday, you know around Christmas time they’ll rent a vacant building downtown and have the ugly sweater store, Barry? They’re just ugly, ugly sweaters, you know. Who knows, reindeer poop or whatever it is.
SPEAKER 01 :
I never know what it turns into after that, though.
SPEAKER 02 :
Where did all the ugly sweaters go? I guess they come back, the ones that didn’t sell come back a year later. Well, yesterday was the ugly chart day. I mean to tell you. Okay, so I’ve looked at maybe 100 here so far. Boeing is just a perfect example of an ugly chart. And I just ran into another one. Chipotle. What is going on? We don’t own Chipotle. It’s gone from 67 to 49 and it’s plunging today. Chipotle has kind of been one of those Teflon-coated stocks over the years. Very popular. It’s got its cult following. Chipotle is getting taken to the cleaners. Kava, which we owned at one time, made a little profit on, is getting taken to the cleaners. Three earnings reports I want to go over here real quickly. Number one, Broadcom. Broadcom had a really good quarter. Somebody on the chat room that I’m in at Seeking Alpha during the day, also I’m there. The same things that go in that chat room go out to our people that aren’t on Seeking Alpha. They’re pretty much the same messages. Anyways, he wrote to me. He says, oh, Broadcom’s going to beat after the close tonight, and the market’s going to blast off in the morning. So the market closed. He saw me doing a lot of selling yesterday. The market closed, and sure enough, Broadcom beat earnings, and it was up about 12% or 13% in the aftermarket. And I’m thinking, number one, Broadcom can’t hold the weight of the market on its shoulders. I mean, maybe a Palantir or an NVIDIA or an Apple or somebody like that can, but certainly not Broadcom. Now I see Broadcom’s up just 3%. And when you get an anemic response to blowout earnings, that’s not a good sign. That’s like they’re selling rallies. Instead of buying the dip, which has been going on for almost two years and two months, now they’re selling the rallies, which is exactly the other side of that. And another one that surprises me here, I mean, Costco is Teflon-coated. Costco is a Teflon-coated stock most of the time.
SPEAKER 01 :
Look at Costco today. Down 6%. I mean, that one will quickly become a potential for dividend and growth. I think it’s been in there years ago.
SPEAKER 02 :
Yeah, I’ve owned it in the dividend.
SPEAKER 01 :
It was in there like four or five years ago, right?
SPEAKER 02 :
And it’s always been just too dang expensive with the P.E. of 61%. You know, on a retailer, a warehouse club, that’s very expensive. But it gets a premium multiple because how much people love to shop. But that’s the biggest drop I’ve seen in Costco, which is indicative of a very weak market. I mean, Costco basically reported earnings that were in line. Their sales were up 9%. Their earnings were only up 8%. But that’s been about where they’ve been recently. And Costco on four times normal volume is down $62 per share right now, or 6.1%. And I haven’t seen a drop like on Costco like that. I can’t even remember the last time I’ve seen that, okay? The last one I want to mention here that reported earnings. I mean, look, it’s a trashed company already. But it’s still a player. Hewlett-Packard, this is the service side of Hewlett-Packard. And Jeff, I’m sure, could lend a little bit of color on Hewlett-Packard because this is the service side. This isn’t the hardware side of Hewlett-Packard. This was the space that Jeff pretty much swam in for many years. And look at the service side down 15. Look at that chart. That is just a plunge. That’s a polar plunge, they call it this time of year, on HPE, which is a big name in Silicon Valley. So, yeah, I mean, this is just all adding to the fact that the sentiment on the market… You’ve got number one, you’ve got valuations, which got very, very high in January, in December, and in February. But the market was holding those valuations up because you had the momentum supporting them. And then when Palantir warned, the momentum started to come out. The starch started to come out of the white shirts in the market, kind of like a football team. All of a sudden, you know, they intercept and do a pick six, and they’re right back in the game. And all of a sudden, the momentum has shifted to the other side of the field. That’s the way I look at this right now. And we continue to see one crash here, a breakdown after another. So it’s going to take one heck of a catalyst to turn this thing around. I just don’t see anything out there right now. Now, eventually, this is a market. Eventually, markets get so cheap that the buyers come rushing back in. And that’s what I’ll wait for. But in the meantime, there’s a lot of settling that has to happen. And I think there’s still downside risks. So, you know, I think the best place is to have a big chunk of cash and be ready. And then the stocks that are working to continue holding on to them. But even watch them because sometimes it will spread to the insurance stocks. Sometimes it will spread to the blue chip stocks. So we just have to watch it right now. But those three charts… Costco, Broadcom, and Hewlett-Packard certainly back up the theory, my observation, that you’ve got a very, very bad sentiment on the market right now. All right, well, we are out of time. What a week it’s been. I will get a good start on the newsletter. I’ll be sending out alerts all throughout the day. Sign up for a four-week trial of that at GundersenCapital.com. You better grab a spot in Sarasota because they’re limited. I mean, we can only meet with so many people in two days. Call 855-611-BEST, 855-611-BEST, or get the free trial at GuntersonCapital.com. And, of course, if you just want a Zoom or telephone appointment, 855-611-BEST. Have a great day. Have a great weekend, everybody.
SPEAKER 04 :
This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIPC and FINRA.
