This One Ticker Will Tell You When the Banking Crisis Is Really Over
Shah Gilani|May 3, 2023
The Fed is expected to raise interest rates another 25 basis points, and analysts expect they’ll pause for a while after that. I’m also pretty confident that’s the case, but I’m not taking it as the stellar news for the market that many media outlets are, because things are complicated out there.
Case in point: Apple Inc (AAPL), which has been one of the main stocks driving the overall rally we’ve seen in markets the past few weeks, is set to report earnings on Thursday. Stuart Varney, on his Fox Business show Varney & Co., asked me if an estimate-beating report from AAPL could move markets higher. And of course, it could – sentiment is optimistic right now because overall earnings this season have come in higher than estimates.
But just because it could, doesn’t mean it will. You have to remember, consensus estimates for AAPL have been knocked down, so they’re going to have to clear those estimates by a wide margin in order to create real confidence. For me, it’s still very much up in the air.
Also, there are still headwinds for the market that I wasn’t able to talk about on the air, but I wanted to make sure you knew about them, because they could keep markets down no matter how rosy the earnings picture is.
I’m talking about banks. The banking crisis kind of got swept into the rearview mirror after leaving the news cycle, but it’s very much a prominent issue in my mind still, and I think it’s one of the major reasons we haven’t seen more institutional money come off the sidelines.
We’re not out of the woods yet on that, and there’s a particular ticker I’ve been watching that’s acting as a bellwether for the state of the banking crisis. And right now, it’s signaling caution.
Check out this short video for that ticker, what signs you need to look for, and why ignoring the continuing issues with banks is a bad move for investors and traders alike:
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The thing to keep in mind about following headlines is that the news cycle has a really short attention span. You have to follow what’s under the radar to find the best opportunities.
Here’s an example: one of the biggest land rushes in American history is going on. Major oil and gas companies are fighting tooth and nail to secure drilling rights on thousands of new locations across the Permian Basin, and that makes smaller companies who already have access to the region prime targets for acquisition. Mainstream media is barely talking about it even though there are trillions of dollars in assets on the line.
Money Morning LIVE’s executive producer, Garrett Baldwin, has identified five small firms that are leading candidates to get swallowed up in the frenzy… and all of them have the potential to double or triple your money in a month or less.