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SOTU: Talk about a bullish case for commodities and alternative investments-wow!

Feb 08, 2023

Good morning!

A quick reminder before we get rolling…

I’ll be sitting down for an in-depth interview with the fantastic Ed D’Agostino of Mauldin Economics this Friday and taking YOUR questions. Please be sure to click here if you haven’t yet submitted yours!

Now, let’s get after it.

Futures are slipping yet again as traders refocus on earnings.

Excellent.

Chaos = opportunity!

Here’s my playbook.

SOTU: Talk about a bullish case for alternative investments—wow!

I stopped by for a quick chat yesterday with my friend, the super-savvy Scott Shellady, on his hit show, The Cow Guy Close. (Watch)

Scott asked for my take on what I’d like to see President Biden say versus what I thought we might see, and how individual investors should handle last night’s SOTU address given its potential impact on the markets.

Two things...

Take a deep breath because most of what you’ll hear will be highly inflationary; and,
Focus on the world’s best CEOs because they’re charting a path forward based on trends that will be with us a long time.

Things played out about as I expected.

The president’s speech boiled down to three things.

Tax, spend, and throw money at our allies.

Talk about a bullish case for alternative investments, including three of my faves: gold, wine, and whiskey. Upgrade to Paid

Don’t underestimate Powell's latest remarks

Fed Chair Jerome “JPow” Powell said Tuesday that inflation has started to ease but that interest rates are still likely to rise. (Read)

Translation: The shenanigans aren’t over yet.

Get ready now.

This is a major shift in posturing and body language, even though the mainstream media is not reporting it as such. The language “started to ease” is what you want to focus on because it’s the first de facto acknowledgment that the tide may finally be shifting. Moreover, there was a decidedly different tone in his voice and a subtle change in his posture when he said it.

There will be no warning bell when the markets take off, a point I have made many times.

Anybody sitting on the sidelines risks being left in the dust (again).
Many already are.

The S&P 500 has already tacked on +19% off its 52-week low of 3,491.58 last October.

Some stocks—like those I recommend in One Bar Ahead®—are doing considerably better. In fact, OBAers following along as directed recently had the opportunity to capture 100% gains on a leading e-commerce provider and de-risk their accounts at the same time. U-rah!!!

I trust you have the opportunity to make similar moves, too.

OBA Key Point: A lack of objectivity can prevent investors from seeing the truth and, I submit, from achieving the profits they deserve. Whether you like what’s happening or not is moot. The markets have a long-term bias to the upside, so it makes sense to play accordingly. Otherwise, you risk being trapped on the sidelines or left behind because you can’t get past your own biases.

Be in to win or you won’t… win!

AI wars hit prime time

Microsoft just stuck it to Google again by releasing a new AI-powered Bing homepage you can chat with. (Read)

Not much else you can say.

Or should I ask ChatGPT about that? 🤦‍♂️

Quick trade artists, BTW, may want to keep an eye on Alibaba, which will undoubtedly throw its hat in the ring, too. But tread lightly considering who backs that one… because it ain’t exactly the Boy Scouts! Shares are $104ish as I type.

Two more oil stocks in high gear

The world is shifting to alternative energy, but don’t tell that to the big oil companies. Two more of ‘em just posted record profits. According to Reuters...

Norwegian oil and gas producer Equinor posted a record $74.9 billion adjusted operating profit for 2022, more than double its previous high, as gas prices soared.
French oil major TotalEnergies posted a record net profit of $36.2 billion in 2022, joining in the sector's bumper earnings.

Much to the chagrin of many, worldwide oil demand is still increasing. My favourite multi-national has rock-solid dividends ahead, as well as one of the best breakthrough energy portfolios on the planet.

You know what to do.

And if you’d like a little help, I’m here. Upgrade to Paid

BBBY gets a lifeline, but the boat sank a long time ago

Bed Bath & Beyond (BBBY) has reportedly secured a $1B capital raise backed by Hudson Bay Capital. The 2-stage deal consists of an initial $225 million stock offering, with the hope of raising another $800 million over the next 10 months. (Read)

Do NOT touch the stock unless you are willing to part with every last dollar you invest.

The move is a nasty little trick intended to temporarily “beautify” BBBY’s balance sheet and attract the gullible, or at least the bottom fishers. Nothing more.

The only ones who make money in situations like this are usually the undertakers… err, underwriters and bankruptcy lawyers.