The best stocks are a steal if there’s a correction coming
Sep 02, 2021Good morning!
Early gains after a better-than-expected jobs report this morning, but I think there’s a bigger concern.
Here’s my playbook.
1 – Here comes “mu” – what to buy now
I have been as emphatic as I have been consistent from the very beginning of the pandemic … the real challenge is a variant that outruns current medical technology. Now apparently, there may be one out there … mu.
We will beat Covid, of that I am certain. However, that doesn’t mean I’m stupid and neither are you.
Investing and trading are about playing the odds and offense, even if that means being “defensive.” I strongly suggest profit targets and trailing stops like we’ve been discussing for a few weeks now but also having a few $ in inverse funds or a few S&P 500 put options on deck “just in case.”
If there’s a change in market sentiment or panic sets in, it will happen quickly.
Worried about a correction or a slowdown?
Buying recession-resistant companies can help. The best choices have strong business models, great cash flow and many even pay above-market yields. I’ll be sharing two new recommendations I like more than ever in the September issue of One Bar Ahead™. It drops Friday. Subscribe today.
2 – This stock is a steal if there’s more hoarding
My wife stopped by Costco yesterday as part of our weekly grocery run and found out first-hand that media reports about hoarding are correct, at least in our neck of the woods. Toilet paper, paper towels and more are already in short supply. Limits are also being put in place for hand sanitiser and cleaners, apparently.
Just in time needs to be replaced by just in case.
Corporations will have to figure out how to better manage adaptability and unpredictable human behaviour and I know just the player to help ‘em do it … Palantir.
3 – Avoid Chinese tech, unless you like playing with fire
China’s Ministry of Transport has apparently summoned 11 ride-hailing companies for “illegal behaviour” including using unapproved vehicles and drivers, fake discounts, promotions and more.
Not that I’m surprised.
Confucian ethics de-emphasize legal coercion and, instead, prioritize moral exhortation and inspiration by example. That’s why you see the “shame” of a summoning rather than simply fines or legal challenges as you would in the West. It’s also why Beijing goes to great lengths to stress the interests of society whenever there’s a problem.
Anybody buying into Chinese stocks because they think they’re bargain hunting may get lucky, but the situation is a long way from over.
4 – Digital ID, but not for me??!!
Admittedly, we all know this is coming. I don’t have the luxury of taking sides but am merely pointing out the glaring hypocrisy that seems to be presenting itself. And, naturally, Apple is the first company in the water.
5 - Houston, we have a problem
Tesla has reportedly delayed its $200,000 rocket-powered roadster until 2023. Apparently, the Space X thruster will allow 0-60 in 1.1 seconds, even possibly allow the car to fly very briefly.
I wonder about re-entry … and stoplights!
Bottom Line
Success in the markets doesn’t come from anything you do occasionally.
It comes from what you do consistently.
If you’d like a little help, I’m here.
Make it a GREAT day!
Keith
PS: Education is key. I’ve always believed anybody can be a fabulously successful investor or trader with the right perspective, knowledge, and tactics at their fingertips. That’s why I spend a tremendous amount of time educating the One Bar Ahead™ Family through the OBA digital Magazine. Knowledge isn’t just power as the old saying goes. It can be a profitable advantage. Click here to get the edge they enjoy.
