One Weird Indicator Could Mean Big Profits in 2022

by Andrew Zatlin

All this market volatility is making investors nervous.

But falling prices are setting us up for some big profit opportunities.

How do I know? Simple: my “alternative data.” (Hint: it involves AdultFriendFinder.)

And in my latest video, I’ll explain everything.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

One Weird Indicator Could Mean Big Profits in 2022

Hey, everyone! Welcome to Moneyball Economics.

I'm Andrew Zatlin.

Today we’ll be looking at what's making the market so crazy lately…

And where the best investment opportunities are hiding.

Because believe it or not, some big opportunities are being set up for us right now…

An Up-and-Down End to 2021

Things have been really volatile lately…

And they’re getting more and more insane.

For example, check out this chart:

What you're looking at here is a 12-month snapshot of the S&P 500.

And if you want to see volatility, just look at the last couple of months.

As you can see, the market’s been up and down and up and down, with wild swings of 3%.

This is in contrast to the first nine or 10 months of the year, where it was just up and to the right.

What happened?

Why are we going up and down all of a sudden, with no sense of direction?

A Massive Wave Is About to Crash

What happened is that we hit an inflection point.

We’re changing course in the markets.

And as investors, it feels like a massive wave is about to come crashing down on us.

What’s that wave?

It’s the Federal Reserve raising interest rates!

Here’s What the Fed Is Going to Do

As of today, there’s an 80% probability the Fed will start raising rates in March.

This change of course is making investors very nervous.

Longer-term, maybe they should be nervous. We’ll have to wait and see about that. (If the landscape changes, I’ll be the first one to tell you so — so be sure to stay tuned weekly.)

But in the short to medium term, I’m excited.

You see, when you look at the alternative data I track, it’s clear the economy is doing great right now. And the profit opportunities for investors like us are getting bigger.

Let me show you what I mean…

AdultFriendFinder To The Rescue

For starters, let’s look at one of my favorite sources of alternative data. That way, we can see what’s really going on in the economy right now.

This is from AdultFriendFinder.com, a dating site geared toward flings and hookups.

The importance of this data is something I stumbled onto. But ever since I realized its value, I've been tracking it religiously to get a perspective on what I call “vice spending.”

The premise here is that 100 million Americans use AdultFriendFinder. They’re willing to pay real money to be part of what’s essentially a dating site.

And we’re talking about real-world interactions here. This isn't like Facebook, where people are just “keyboard cowboys.” The purpose of AdultFriendFinder is to meet up with somebody, go out for drinks or dinner, and then have some old-fashioned physical interaction!

So this user data reflects all the people who want to go out in person for food and “recreation.”

For example, see that little dip during the summertime? That's because of Covid. People were afraid. We had the emergence of Covid Delta, and then Omicron popped up in October.

But look at the surge in November — that’s a 50% jump! AdultFriendFinder went from 2 million people logging into its website every day, to 3 million.

That’s incredible! And it’s a clear sign that consumers aren’t locking their doors and staying inside. On the contrary, it’s clear they want to be out.

And when people go out, they spend money!

And to prove that they’re spending money, check out another of my sources for alternative data…

What Happens in Vegas… Is a Leading Indicator

The source of this data is from Vegas.

You see, I'm a big believer in consumer spending as an economic indicator.

Millions of people come to Las Vegas every month to gamble.

And as it turns out, spending at Vegas casinos right now is even higher than it was in 2019.

Sure, the number of people coming in is still about 10% below where it was in 2019.

But the price of a room is up a whopping 15% — and that more than makes up for the lower attendance.

Get Ready for the Bounce

The thing is, strong consumer spending will benefit many sectors — not just obvious sectors like entertainment, travel, and gambling.

People have had it with staying inside. They want to go out, and they’ll want to go out even more as we head into springtime.

Meanwhile, the vaccines are doing their job, and consumer confidence just keeps growing.

That’s why, as the current selling pressure subsides, I believe we’ll see strong recoveries from stocks in some unexpected sectors.

Bottom line? Some awesome profit opportunities are getting set up for us right now.

I’ll be telling you more about these opportunities every week…

So be sure to keep tuning in!

Zatlin out.

In it to win it,
Andrew Zatlin
Andrew Zatlin
Moneyball Economics