Join professional money manager Bill Gunderson in this engaging episode of ‘Best Stocks Now’ as he navigates the current market terrain. With a mixed start in the markets today, Bill analyzes the significant impact that interest rates have on high PE stocks, especially within the tech industry. Through insightful discussion with co-host Barry Kite, they delve into the complexities facing the NASDAQ and other major indices, deciphering the macroeconomic and technical challenges that investors must grasp in 2024.
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 07 :
And welcome to the Monday. It is the Monday, January the 13th edition of the Best Stocks Now show with professional money manager Bill Gunderson. And we’re off to a very mixed start in the market here so far today. The Dow futures were way down this morning. And now with the open of the market, the Dow opened about flat. And the Dow is right now up 77 points. By the way, I’m Bill Gunderson, president of Gunderson Capital Management, and I’m here with Barry Kite, and it is the Best Docs Now show. The Dow up 178. That’s about 40 basis points to 42,116. The NASDAQ, which was down a lot more, is kind of making up a little lost ground. It’s now down 1%, let’s call it, down 186 to 18,938. The S&P is down 25 points. That’s about 44 basis points. The Russell 2000 down 1.1% right now. The problem lately has been interest rates. And the bond market, by far, that has been what has been hurting the market. It’s been shrinking those multiples on those high PE stocks, mostly tech stocks. Today, the 10-year is quiet. That’s good news.
SPEAKER 1 :
4.77%.
SPEAKER 07 :
See a pathway to 5%, though. Very easily, not much resistance to hold it back. Crude oil is up to $77.78 and Bitcoin is down $4,800, clear down to $90,000. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. Well, as you know, in the first week of the year, or the last week of the year, I think, maybe last year, I wrote about the valuation problem that the NASDAQ now has. We’re in over the last couple of years since we put out a buy signal on the NASDAQ, which is still in place, by the way, but could be pulled at any moment. The two-year P-E ratio has gone way up from 20 to 35 on the NASDAQ. That’s a big increase. And then to throw a little bit of lighter fluid on top of that, interest rates have gone up 100 basis points, one full percentage point. Since the Fed started cutting interest rates. I was trying to explain this to my wife yesterday, Barry, and she goes, well, the Fed’s been cutting. Can’t they keep cutting? I said, well, you know, at the end of the day, the market determines interest rates.
SPEAKER 06 :
Particularly the long-term rate, right?
SPEAKER 07 :
That’s exactly right. So the Fed can do whatever they want to do. But at the end of the day, the market investors in U.S. debt are demanding a higher interest rate be paid to them. And right now it’s 4.78% in order for them to invest in the 10-year. Well, here’s the good thing about markets also, Barry. At some point, that 10-year is going to become so attractive. I mean, even at 4.77 for 10 years, that’s pretty attractive.
SPEAKER 06 :
People will buy it down.
SPEAKER 07 :
Buyers will come in. So that’s just the way markets work. Now, looking at technical markets, charts over the weekend on Saturday, which I would say is the most important part of the newsletter this week. Take a look at the charts and my commentary on all the major asset classes. There was resistance at 4.7, pretty heavy on the bond market. I didn’t think we’d go above that, but we did. We finished at 4.78 on Friday. The next level of resistance is 5.0, and you’ve got to go back a few years when we hit that level.
SPEAKER 06 :
Yeah, it’s been a couple years, and then if you look back before that, it won’t even show up on a 10-year chart.
SPEAKER 07 :
Look, I don’t see it going above 5%, but I see very little resistance for it to get to 5%. Then you would hope buyers would say, hey, 5% guaranteed for the next 10 years. If America is still around, you know, we’ll have a pretty good return there and the buyers will drive the rates down again. Right now they’re selling going on in the bond market. To make matters worse, you know, despite the Fed’s best efforts to cool off the economy, Now we’re doing rate cuts to try to keep it from going into the tank and slowing down. You still have a hot economy, and that’s probably going to put off any rate cuts coming in 2025. I don’t see any on the horizon right now. myself because you had the big jobs report on friday showing that the economy is still strong at least the jobs market i don’t know about the consumer the consumer might be softening a little bit which would eventually lead to the jobs market but we’re not there yet and that big jobs report says well you know despite what the fed has done they haven’t really cooled off yes inflation is just around three percent now not any more up at the eight or nine percent range But it’s looking like it may be sticky there for a while. And for that reason, we may not see any more rate cuts for quite some time. And that’s what’s throwing the market into a tizzy. It’s got the bond market in a tizzy. It’s got the high PE NASDAQ in a tizzy. And I would just add that First, we began the year with a valuation problem on the NASDAQ. Now you can throw in a technical problem.
SPEAKER 06 :
And it’s all interest rates.
SPEAKER 07 :
Yes, and we’ve had a trend reversal. It began with the Dow. That’s usually where it begins. The Dow is in a trend reversal, not from a bull to a bear, but a pretty vicious secondary downtrend. I think we’re down 6% or 7% right now from the high in the Dow. That’s where it all began. The Dow started to fall apart. Of course, there were some individual stocks within the Dow that aren’t helping, the Intels and the Boeings of the world. And then the S&P started a little bit of a trend reversal, which is continuing on today. And we’re at some very important support levels, which we’re probably going to break this week, I would think. And now the NASDAQ is in a bit of a trend reversal also. Which, you know, look, I mean, after two double-digit years in a row, 20% plus years in a row in the S&P 500, there’s going to be some profit-taking in some of those stocks and moving out of some of those winners and looking for other opportunities. And I said they’re probably going to wait until after the beginning of the year, a new tax year, before they do any selling in those big stocks. And that’s what we’re seeing right now. And so now you’ve got a technical problem, very weak technical patterns in a lot of very important asset classes. Number one, the bond market. The bond market is still looking for support. If you look at the five-year or one-year chart of IYE, which is the 10-year bond market ETF, you’ll see that it has not found support yet.
SPEAKER 06 :
And we might get some news to push that this week. I mean, we’ve got CP, we get PPI, CPI, we get retail sales.
SPEAKER 01 :
Yes, we’ve got some big reports.
SPEAKER 06 :
Not to mention earnings starting. Yeah, your big bank started on Wednesday, as you mentioned, at the end of last week. But yeah, it’ll be interesting. The inflation story will be an interesting one this week. We’ll see what we get. And, of course, the next anticipation being what will happen after the inauguration, what we see with tariffs and other things.
SPEAKER 07 :
Yes, and I am reiterating constantly that we don’t have an earnings problem in the market or a problem with the economy or a recession problem, a looming recession. We have a valuation problem. And then with the bond market being so weak and interest rates going up, it’s now turned things into a technical problem. It’s turned the sentiment on the market. Technical analysis is really a measure, an observation of the current sentiment. And the sentiment has turned sour against small caps, against large caps, against tech, against high PE stocks, tech especially. So we have that to deal with. Luckily, I mean, we’ve lowered our exposure. We lowered our exposure late last year. I think our ultra-growth account has got a lot of cash. I can’t remember.
SPEAKER 06 :
It’s probably about, I mean, at most it’s probably, what, 80% invested at the moment. Yeah. You know, in terms of beta.
SPEAKER 07 :
Yes, and even I think the ultra-growth has got even more, less cash. exposure than that and i introduce some funds because i could see this coming i could see that trend reversal and i think it could last for a while i don’t think it’s going to be a few days and be over you know the interest rates have done some damage to the market and it’s got to run its course now. Some are saying, I saw one guy saying, well, when Trump gets inaugurated, you’re going to see another little bit of a blast up higher in the market, and then probably settle back in this kind of funk that we’re in right now. So anyways, it’s a stock-by-stock market. You’ve got to take it one at a time. I did quite a bit of selling in the first week of the year, cutting things that weren’t working, cutting things that looked vulnerable. Though, I’m telling you, You’re studying that technical analysis, Barry. I can’t tell you how important it is because that’s where trouble shows up first in an individual stock, in the indexes, in gold, in Bitcoin, in oil. It doesn’t matter. I mean, all these traders around the world are watching these technical support levels.
SPEAKER 06 :
And whether they’re real or not, people trade off of them, and so they are real.
SPEAKER 07 :
Okay, well, when we come back, we’ll kind of set the stage for this week. A lot of earnings on tap, and like you say, a couple of big reports, including the inflation report. We’ll be right back. And welcome back here to the second quarter of today’s Best Stocks Now show where earnings collide with the bond market in multiples. And that’s what’s taking place in the market right now. And, you know, I mean, Trump can call for lower interest rates all he wants, but it’s the market that determines where those interest rates. Now, I do think that once they get in and start working on a more reasonable spending plan, that could help the bond market.
SPEAKER 06 :
Yeah, that actually reduces them. You know, it’s being equal, right? It improves your – if you can improve that cash flow situation a bit better, well, then that makes you a better credit worthiness, right? It goes up, which makes the price of your bond go up. go up, which lastly makes the rate you pay for interest go down.
SPEAKER 07 :
And at some point here, you’re going to have buyers come in. In fact, I see a lot of people, the bond guys are starting to recommend, hey, you know, this is pretty attractive. So that’s why a market is such a beautiful thing, right?
SPEAKER 06 :
Well, and the other thing is we’re almost, if I saw it right today, I think we’re at 101 in terms of dollar to the euro. So we’re pretty close to parity. That’s another potential thing that could help bring interest rates down, right? As if dollars, people want to hold more dollars. Well, then in turn, that usually brings the cost of capital down, right? In this instance, the cost of capital to the U.S. government.
SPEAKER 07 :
Exactly. So anyways, this week we do get the CPI on Wednesday. That will be closely watched. There’s no question about it. And we have had a move up in oil here recently. That could impact that a bit. And then you’re going to get the PPI on Thursday.
SPEAKER 06 :
Yeah, PPI tomorrow. Okay. Yeah, PPI tomorrow. Retail sales later in the week, too.
SPEAKER 07 :
So these are all very important. Retail sales will give us a good look at where the consumer is right now.
SPEAKER 06 :
And, of course, our jobless claims numbers, which came in at, what, 201 last time, which is one of the lowest we’ve seen in a while. So that will be on Thursday as well. And a bunch of Fed speakers talking. They must be at some conference on Wednesday because we’ve got about three or four speakers.
SPEAKER 07 :
And then, as you said last week, I mean, this sell-off in bonds has been worldwide. Interest rates have been going up worldwide. And… The global markets look horrible. Now, there’s another piece of my newsletter that might get overlooked, but in the macro outlook, I have a little color system for the current status of all the major indexes around the world. A signal, a signal, okay, buy, sell, hold, and that thing is just deadly accurate, okay? I mean, what I’ve created, it’s a monster. And, I mean, it’ll call us. The first sell signal occurred in a long, long time. It’s a very weak sell signal on the Dow. which that’s the first one that started to go the other two were like you know holder we called somewhere in there you go around the world europe looks horrible the j k which is the europe e t f europe had was up one percent last year their markets now they’re going to face tariffs They’re still got issues with their energy supplies. They have very slow growth economies. Inflation’s still hanging around there. So we do have an inverse fund ETF, which is EPV, against Europe. And it is up 2% today, okay?
SPEAKER 06 :
Yeah. And if you’re interested and you want something to use as kind of a moniker or measure for Europe, just look at LVMH. That’s another one. Look at the chart there where at one point in the last 12 months it was $950, and now it’s at $659. Ouch. Okay. That’s about close to a third.
SPEAKER 07 :
Let’s go to some even bigger. You go to, well, let’s just talk about the emerging markets. Look. awful vwo volkswagen without an engine that’s what that stands for man vwo vanguard footsie emerging markets I would just say that if your person has you in the emerging markets with a pretty heavy or even a 10, 15%, I wouldn’t have anything in there. I’ve been saying that for a long, long time. The emerging markets are down 16% over the last few months, and they just look awful. China, of course, has been a big catalyst behind this fall in the emerging markets. And that’s one of the asset classes that I have.
SPEAKER 06 :
So the U.S. dollar. As the U.S. dollar goes up, you’ve got a lot of these emerging markets own U.S. denominated. They issue debt in U.S. dollars because of their own small currency issues. And so… As the dollar strengthens, it costs more for them to pay us back. Exactly. Or to pay those bonds off. Not us, but to pay those U.S. denominated bonds off.
SPEAKER 07 :
And then look at the emerging market ETFs. There’s EUM and EEV is breaking out right now. And all of these look like they have a lot further to go to the downside. And the ETF, inverse ETFs look like they have a lot further to go to the upside.
SPEAKER 06 :
Yeah, I mean, there’d have to be a lot of things to happen, I think, to get a tailwind right behind emerging markets. I mean, you’d have to have a weakening U.S. dollar. You’d have to have… Trump lighten up on them. There’s a lot of things that… Yeah, I mean, China would have to get back to growing in terms of what it needs to be. I mean, the amount of… Things that need to occur. I don’t see the catalyst there. It’s hard to put together.
SPEAKER 07 :
You know, I just look at an inverse ETF. It’s any other asset class nowadays. It is. I mean, as big as the hedge funds are out there, you know they’re hedging against some of the weak spots. and that’s one of the weakest out there another area that’s very very weak the small cap stocks because this rise in interest rates is not good at all for small caps and those inverse small cap ETFs TWM is the one that I usually use it’s twice the inverse of the Russell 2000 which is a lot of junk in that Russell 2000 and when interest rates go up that junk is exposed Like low tide, man, there’s a lot of junk out there in the small caps. And that’s breaking out, TWM. And then, of course, Bitcoin. Bitcoin was looking ahead, looking forward to some rate cuts this year. I just showed the Bitcoin chart over on Saturday. I said, you know, if it breaks this support level, there’s a long ways to the next support level. Bitcoin went on a run that, you know, leaves it pretty vulnerable to a pretty stiff correction. It’s already down about 10, 11, 12 percent. It was at 105 and now it’s at 90. So that’s another weak area. Now on the good side, we’re looking for record earnings this year. This is now earnings season. I just go to my earnings page here. It’s pretty astonishing really what we’re expecting in earnings. in 2025 versus last year, and in 2026 versus 2025. Now, that’s subject to change, obviously. But right now, the earnings picture, when we come back, I’m going to give you what this quarter’s earnings estimate is, the bogey. Here’s the par number that we’re shooting for. Let’s hope for a birdie there. We’ll be right back. This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 03 :
And looking back here to the second half of today’s Best Stocks Now show.
SPEAKER 07 :
Okay, the quarter. This is the last quarter of last year that’s being reported now. And then we’ll have the final numbers for 2024. once those numbers are in. We’re looking for $61.80. Okay, that’s the number. That is par for the consensus analyst estimates for the S&P 500 currently stand at $61.80. This compares with the same comparable quarter last year of $55.56. So you can see that’s pretty hefty growth year over year. That’s 11.7% growth is what we’re expecting. when all is said and done and the counting is done and the revenue growth should come in at 4.7%. Now that’s all subject to, I haven’t seen a lot of warnings yet. This has been warning season and nobody seems to be out there really warning right now.
SPEAKER 06 :
uh and if if we come in somewhere close to that that means we’ll have 9.4 growth in 2024 versus the previous year well on these elevated rates if we do have these elevated rates for a period of time it could you know we could get into a mix where you have some banking earnings that don’t yes don’t hold up as well i think you mentioned uh something about that last week too but certainly you’re If you remember the Silicon Valley bank issue was because treasury yields went elevated compared to what they bought them at.
SPEAKER 07 :
Then 2025, which is out there on the horizon there, we’re looking for 14.8% growth next year and then 13.6% the year after that. Okay. That’s what the market’s going to trade on until we start to see changes to those estimates. But there’s obviously a lot of people out there that are saying, you know what, I don’t think I’m buying those numbers. I’m going to start betting that the consensus estimates are way too lofty here. But the bigger issue is the multiple right now that’s being impacted. And where are we at on the multiple right now?
SPEAKER 1 :
21.51.
SPEAKER 07 :
21.51 is where the forward PE ratio is on the S&P 500. It was 22.2 two weeks ago. It has come down a little. But consider that the five-year average is 19.7. So we’re still above the 10-year average is closer to 18. So we’re still at a lofty PE ratio, especially given the new interest rate environment that we have of rising interest rates. But like I say, we don’t have an earnings problem. We have a multiple problem, and that could be alleviated somewhat. We need to have those buyers start coming back into the bond market to drive interest rates down. Who knows, maybe when Trump takes office next Monday, which is also a holiday, by the way. Yeah, it is.
SPEAKER 06 :
It is Martin Luther King.
SPEAKER 07 :
The market will be closed. He will take office. Expect a rally on Tuesday? I don’t know. I mean, that’s what some are calling for. Okay, now we get into some individual stocks here as we begin the week. There’s not a lot of really important companies reporting this week until we get into Thursday and Friday.
SPEAKER 06 :
We’ve got J.P. Morgan, Wells Fargo.
SPEAKER 07 :
Yeah, coming in with their earnings. We’re going to get Schlumberger, Bank of America. We already got Taiwan Semiconductor, I think, last Friday. It was really good. Yeah, it was. So anyways, that’s kind of the earnings picture. We’re looking for record earnings this year, record earnings next year, and earnings have been going up since 2009. When those earnings start to rescind and start to get shaved, those numbers, then you’re going to start heading into a bear market, okay? And that’s why we always have to be on… high alert and be very very vigilance the mag seven uh… are looking for uh… apples looking for uh… ten percent growth uh… this year amazon eleven percent alphabet eleven percent meta fourteen microsoft thirteen nvidia fifty tesla sixteen and the magnificent seven overall fourteen percent is what they’re looking for in growth this year versus last year. As I say, that’s pretty healthy growth on tap, but those interest rates are messing us up right now. Okay, now, a lot of people saying strong chance the Fed hike. Here’s one that comes up, the Fed hike this year. I saw Torsten Slock, chief economist at Apollo Group. He’s a pretty well-known guy. Pretty smart. He’s got his finger on the pulse of the market very closely. He’s calling for a rate hike this year.
SPEAKER 06 :
Yeah, that was where I was talking about, you know, the kind of sentiment shift towards the end of the week last week where it was all of a sudden, I think, you know, I had in the background, you know, some financial news on, and it was, you know, I think three, you know, three bears in a row. He was one of them. Right. And just in terms of what was going, you know, kind of bearish sentiment, which, you know, you don’t get a lot of times and, and, And none of them were Mike Wilson, so it was something to pay attention to because he’s always bearish.
SPEAKER 07 :
Well, there’s a little bit going on here in M&A. Johnson & Johnson is buying ITCI Intracellular. I was looking at that stock in the app. It was ranked number 19 as of last Friday. I missed it because it had a big bolt higher on Friday in anticipation. Then today it’s up 35%. So Johnson & Johnson trying to do something. to kick up a little dust, kick up a little growth again. Another one here. Let’s see if it’s holding up. No, it’s pulled back. It was up. The Natera guided Q4 above consensus. Macy’s falls after issuing its holiday quarter update. That should come as no surprise. That’s just a downward spiral. What can I say? That’s a horrible, horrible chart. They’re closing 66 more stores. It’s now down to $4 billion. It’s a small cap stock. Macy’s. Macy’s is a small cap stock. which is pretty hard to believe, but another poor holiday season. Shake Shack issues positive update. Problem is you’ve got downward wind against the market today, and Shake Shack’s down 6% despite good news. Lululemon has guided higher here, and it’s flat. They guided quite a bit higher, and yet it’s flat. Let’s see, Dexcom raises their outlook for 2025. No, the stock down.
SPEAKER 06 :
What do you think about that space in light of the GLP-1s and Wagovis of the world right through Lilly? I wonder how that affects Dexcom.
SPEAKER 07 :
I see a lot of sector rotation out of tech into medical. which is a little bit more reliable on the earnings front. It’s considered a little bit more defensive. Of course, we still have a big position in Lilly. Lilly’s look pretty good. I like the fact that if you’ve got sleep apnea, that has now been approved. You can go to Medicare. And get a prescription for Zepbound. Of course, you have to be diagnosed with sleep apnea. But that’s a big boost for Lily. And Lily’s definitely cleaning out all of these compounders. So I think things look pretty good for Lily. Retail looks horrible. We have an… In the… trading uh incubator we have a short inverse etf against the uh retail bricks and mortar which is scc i imagine it’s having a good day yeah it’s up a half a percent today it should be doing better than that because abercrombie and fitch is getting clobbered today Abercrombie & Fitch is down 18.7% right now. Urban Outfitters, these are companies that are kind of pre-announcing. Urban Outfitters is down 6%. It is a negative day, I’ve got to tell you. Just kind of like, you know, sentiment. Sentiment is not good on the market. Noodles, I don’t give much credence to that. Noodles is guiding higher. It’s a 68-cent stock. I remember one time many years ago, I said, this is a stock that I would short because it’s not going to survive. And now it’s 68 cents is noodles. And then J. Jill, you know, that one gives issues of soft guidance here too. So it doesn’t look very good. I think what we’ve got to look at here today, and, you know, look at the charts. The newsletter this past weekend said, I started that thing at 8 a.m. I finished it at 4.30. So what is that, eight and a half hours? Because I felt like there’s been some big shifts made. Big, big changes made in the market from a sentiment point of view, a technical point of view, a valuation point of view. But the technicals really show it. When you look at a chart of the Europe market, when you look at a chart of China, the emerging markets, the NASDAQ itself, Some of the sectors within the NASDAQ, the software stocks are breaking down. That’s just the way it is. I have to report what I see and not try to spin it at all. That’s what I see. That’s what I observe, and I have to act accordingly. When we come back, we’ll take a little look inside, dive underneath the muck of the market. We’ll be right back. We’ll be right back. And welcome back here to the final segment of today’s Best Docs Now show. Well, as of now, let’s just see the S&P 500 since the beginning of the year. Remember how strong we entered the year? Not that good, really. We had, from the time of the election until about a week before Christmas or so, we had a heck of a rally. It was just overdone. What can I say? I mean, it was fun to ride it up like that, but you could just tell that they were overdoing it to the upside, and some of that air had to come out of the tires. Right now, the S&P 500… Year to date since the beginning of the year, down 1.4%. The total world market, which I track, that’s a pretty good indicator of the global, all the markets around the world. Right now that thing is down, and of course some markets are down more than that. The total world is down 1.5% since the beginning of the year. Now as I look inside the Dow today, it looks a lot better obviously than the NASDAQ does. The Dow actually looks pretty decent, more defensive, lower P.E. stocks. That’s probably the explanation for that. Like you said, Barry, the health care stocks, you’ve got United Health Care is up 4%. despite all of the lot of sentiment, angry sentiment against UnitedHealthcare, seems to blow over, and they seem to be looking at the valuation and the earnings instead. It’s up 4.4%.
SPEAKER 06 :
Yeah, I think the news cycle moved on to other shinier objects, I guess. We kind of forgot about Luigi.
SPEAKER 07 :
Luigi’s not in the headlines anymore. Caterpillar is up 2.2%. Raytheon is up 1.9%. They’re the leading sector so far this year for whatever reason. One of the issues is increased sanctions on Russia, but Russia seems to know how to get around those sanctions. China is storing a lot of oil in Russia, a lot of black market stuff going on. pardon the pun, in the oil markets. Exxon is also up here today. J.P. Morgan’s up a little bit. They’re going to report later this week. So your lower P.E., defensive sector, health care, energy, banks, they’re doing okay. Now, who do you think the biggest loser is in the NASDAQ today from a percentage point of view? I mean, it’s not awful. Nvidia is down 2.2%. And Nvidia, Jensen Wang is not happy with a new rule put out by the Biden administration in his final days that would further restrict spreading the good wealth, the NVIDIA chips, the high-tech chips out there. NVIDIA’s improved a little bit. It’s weird how NVIDIA is trading between $132 and $152. It gets to $152 and it backs up. He had some strong words. Yeah, Jensen Wang was not happy at all.
SPEAKER 06 :
He had some strong words for Biden at the end of last week. I think it was a story that came out a little bit right before we came on the show on last Friday.
SPEAKER 07 :
And the Quantum CEOs had some good words for Jensen Wang, some strong words against Jensen Wang. Now, they came back a little bit, but today I see one of them is doing a big secondary offering. That’s not good. D-Wave, and they’re down again today.
SPEAKER 06 :
Catching in some chips is what you’re talking about.
SPEAKER 07 :
So if you’re trading NVIDIA, I mean, it’s at the bottom of its range again. It’s vulnerable. It’s weak. It attempted a breakout at new highs just five days ago leading up to his big CES speech last Monday. which didn’t help it. But, you know, of all of the stocks, there’s your best earnings by far. 50% earnings growth this year is what’s expected. And, you know, it’s also got a P.E. ratio of about 50, 52. But really, it’s not that expensive from a valuation point of view is NVIDIA. The other loser today in the Dow is Apple. Apple just not doing real good with this current version of their iPhone. Apple’s starting to fall apart. In fact, it’s down $30 per share. Hulu is knocking it. I think it was Zuckerberg. It was Zuckerberg on his interview with Joe Rogan on Thursday. He dissed Apple saying how, you know, they’re not an innovative company anymore. They’re not coming up with anything new. Zuckerberg was really… Kind of what you’ve said, actually.
SPEAKER 06 :
I’ve been saying it for a long time. I mean, it’s true. I use it for what we use it for, but yeah, nothing new. That’s a lousy chart on Apple.
SPEAKER 07 :
Now, I will say this. Granite Shares has an inverse Apple. So here’s how you could use that. Let’s say we do have a client that owns a lot of Apple.
SPEAKER 06 :
Oh, yeah. And I don’t think they want to sell it.
SPEAKER 07 :
And you could at least freeze the price of Apple. Let’s say Apple goes down 20% in a correction. Well, if you have an equal amount inverse apple, you’ve frozen it, right, at whatever price it is today.
SPEAKER 03 :
Right.
SPEAKER 07 :
And you’ve prevented further downside. But you’re down right now in apple about 11% from the high in just the last two weeks. Apple’s got to come up with a whole new gig here soon because they can’t keep living off of these little tiny upgrades that they do every year. And that’s another thing that he said about them. Our friend Zuckerberg is, you know, they’re just squeezing people, paying $1,000 for a few new bells and whistles every year. So anyways, Apple, that’s not a good chart on Apple. Okay, and with the minute I have left, I’m just going to look at the NASDAQ really quickly. I don’t really want to look at the NASDAQ, but I’ve got to look at the NASDAQ. I’ve got to believe the NASDAQ is breaking that last support level that I mentioned earlier. Ah, yes, but yeah, it’s starting to rebound a little bit. It’s down only 214 right now, but it has definitely broken its short-term support level. I think there’s more downside risk to the NASDAQ. Biggest loser in the NASDAQ today would be, let’s see here real quickly, down 4.8%. Micron is a stock that’s just all over the place. Other than that, I would say that the NASDAQ is pretty well contained. There’s nothing really breaking down here yet today. It seems like a risk-off move. I’ll be in there swinging all day in those pits, those trading pits, see if I have to do anything. If anything, it would be protecting profits from last year and beefing up some inverse funds if I see that as a need right now. We already have some in place. And I just watch those charts. If they continue to break down, that calls for more inverse funds to protect. All right. Get four free weeks. Follow along with the fun. Go to GundersenCapital.com. Set up an appointment with us. If you don’t think this is a world where somebody’s got to be vigilant on your portfolio, oh, man. Give us a call at 855-611-BEST. 855-611-BEST. Have a great day, everybody.
SPEAKER 05 :
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.
