On August 1, 2023, the United States experienced a recent credit rating downgrade by Fitch from AAA to AA+. The complete consequences of the downgrade remain uncertain, yet three particular industries are demanding careful consideration from investors: Finance, Real Estate, and Consumer Discretionary sectors.
Rein Chua delves deeper into the potential adverse effects the downgrade could wield on these sectors in this episode. Given what ‘Fear Barometer‘ is showing us today about the market sentiment, reducing exposure to certain positions could be opportune. With the market possibly transitioning towards a corrective phase from its pinnacle at the 4600 level, whatever assumptions investors hold, the downgrade is a distinct indicator that the robustness of the US’s creditworthiness has diminished from its previous standing.
S&P 500 index Chart
Watch out J.P. Morgan!!!
In the recent market, J.P. Morgan can be one of the stocks many investors keep for the long term for some reasons.
First, J.P. Morgan is a prominent provider of financial services, demonstrating a robust history of advancing profits. In the latest quarter, JPM disclosed earnings amounting to $2.78 for each share, surpassing analysts’ predictions by 10%.
Second, JPM is strategically poised to capitalize on the upward trajectory of interest rates. Anticipated growth in the company’s lending operations aligns with the ascent of interest rates, while its investment banking segment is also projected to thrive due to increased deal activity.
Third, the company possesses a robust financial foundation and ample capitalization, and J.P. Morgan is empowered with financial adaptability to navigate potential economic downturns.
Despite all the buying reasons, Rein Chua is spotting a vital tip during the CNBC review with Jamie Dimon. This might coincide with the peak pattern that J.P. Morgan stock is forming. Watch this episode to learn the opportunity lies ahead.
FINAL WORDS
- The Fitch downgrade aligns with the formation of the peak in the S&P 500 index.
- There are three sectors that the recent downgrade might directly impact.
- Watch out for the J.P. Morgan Stock.
- Watch out for the Bank stocks.
