Why Value Stocks Are a TERRIBLE Idea in 2023! 📉

US indexes managed to close with slight gains after running in the red for most of Wednesday's trading session, except for the Dow, which lost 0.1%. The S&P 500 added 0.1%, and the Nasdaq led with a 0.4% gain. The small-cap Russell 2K edged higher by less than 0.1%.

Today, futures are down in early morning trading. S&P 500 contracts are showing a 0.2% loss at the moment.

Why Value Stocks Are a TERRIBLE Idea in 2023! 📉

When the outlook for the market is uncertain, it's not usual to see traders fleeing to the perceived "safety" of value stocks.

However, this strategy rarely works as well as advertised, and ignoring growth assets could severely undermine your portfolio's long-term success.

The big problem is that picking winning growth stocks becomes exponentially more difficult with the market is struggling, so you need to pick your trades wisely.

See Which Stocks Could Have 10X Growth Potential Here

🏛 More Hawkish Comments from Powell. Fed Chair Powell appeared in front of the U.S. House of Representatives for a second day of Congressional testimony on Wednesday.

The central banking boss said interest rates may have to go up more than originally expected, and added that the size of the next rate cut will be determined by the latest economic data.

First Wave Bio is moving higher after passing a key clinical milestone.

The clinical-stage biotech announced it has dosed the first patient in a Phase 2 SPAN clinical trial investigating andrulipase in certain of Cystic Fibrosis patients.

First Wave said the study will explore "enhanced enteric microgranule delivery formulation of adrulipase for the treatment of exocrine pancreatic insufficiency (EPI) in patients with cystic fibrosis"

Topline results from the clinical study are expected to be available by mid-2023.

The Phase 2 study will examine the safety, tolerability and efficacy of the delivery formulation for adrulipase, with an estimated twelve (12) patients participating.

FWBI is up 24.2% on the clinical update.

My Take: FWBI has been trading sideways for the past couple of weeks, but there are signs of capitulation in the chart. This could be the good news the stock needs to pivot.

Neoleukin Therapeutics is moving higher after a corporate update.

Late Wednesday, the biopharma firm said it's exploring strategic options for the company that may include a potential sale or merger.

Neoleukin said the effort is intended to maximize shareholder value in light of recent difficulties.

The company's board recently approved a workforce reduction of 70% to preserve cash, and the cuts are expected to be complete in the first half of 2023.

Also, current CEO, Jonathan Drachman, will step down after a short transition period.

Neoleukin has hired SVB Securities to assist in reviewing strategic alternatives, which may include asset sales.

The announcement is sending shares of NLTX higher. The stock is up 40.5% in the premarket.

My Take: This stock has been beaten-down, but investors are hoping the company's efforts to sniff out a sale could result in one last pay day for shareholders.

Troika Media Group is experiencing a big rally in today's premarket.

The professional services firm is rallying in response to a bullish analyst note.

This morning, analysts at EF Hutton reiterated their "buy" rating on the stock and reaffirmed their $1.50 price target.

Earlier this week, Troika Media's first-half results sent share prices into free fall, but the stock is recapturing some loss ground today.

TRKA is up 28.1%, and it's one of this morning's most actively-traded stocks.

My Take: TRKA had a whopping 40.38% short percentage as of Feb. 15th, so there's a very good possibility this rally is the result of a short squeeze.

Biophytis is trending after an announcement.

The clinical-stage biotech announced it will present results from Phase 2-3 COVA study at the European Respiratory Society 2023 meeting this weekend.

The conference will be held in Estoril, Portugal, between the 9th and 12th of March 2023.

Biophytis is expected to present positive data from the study, which examined Sarconeos, or BIO101, in severe Covid-19 patients.

BPTS is one of this morning's top performers with a 42.0% gain on active trading volume.

My Take: BPTS is rallying in anticipation of a big announcement, but I wouldn't be surprised if we saw a pullback when the news finally breaks. This looks like a "buy the rumor, sell the news" situation.

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