Get Ready for Major Volatility

Episode #344 | January 16, 2024

Episode #344 | January 16, 2024

Get Ready for Major Volatility

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey welcome Stansberry Research analyst Greg Diamond back to the show. Greg is the editor of the Ten Stock Trader newsletter and has nearly two decades' worth of trading experience. He joins the podcast to give listeners his unique insight into the huge opportunities forming in the options market today.

Dan and Corey kick off the show by discussing car-rental company Hertz selling one-third of its electric-vehicle ("EV") fleet and planning to reinvest in gas-powered cars. They talk about the reasons for this move, why EVs might not be a popular choice as rentals, signs that oil and gas companies are still thriving, and how the green-energy transition could lead to higher inflation.

Next, Greg joins the conversation and analyzes the current volatility in the markets. He explains that investors and the financial media believe the Federal Reserve has beaten inflation and is going to start cutting rates soon. But as Greg notes...

Everyone's on that side of the bus. And usually when that happens, the opposite happens... It doesn't mean that we're going to have a 2020 COVID-like crash. It will probably be more of a 2022-type scenario where we see these huge moves up and huge moves down... It's astronomical the level [at which] these swings are happening.

Greg also goes into detail on his study of cycles. He explains that he focuses on when something is going to happen rather than why it will happen...

Time is the most important factor in trading and investing, then price, then fundamentals... You see these patterns develop, you see these time cycles develop, then the move happens, and then the fundamentals come. "Oh, well, this is why that happened." But you want to be ahead of that fundamental catalyst or fundamental move to make really good trading decisions.

Then, Greg predicts important inflection points for 2024, describes how legendary trader W.D. Gann influenced his trading strategy, and explores the potential ramifications of the Fed ending its bank lending program in March. He also details why he'll be trading sectors for the first half of the year rather than individual stocks.

Lastly, Greg talks about correlations between the S&P 500 and specific exchange-traded funds. He assesses what it means for the markets when divergences happen and how extreme volatility leads to great buying opportunities. As Greg sums things up, "I think it's going to be a rough ride for bulls and bears."