The Infrastructure Bill Makes These Stocks Unstoppable
Aug 11, 2021Good morning!
Futures were mixed in the pre-market when I took to the air for the “Word on Wall Street”, a daily feature the super-savvy Maria Bartiromo hosts on her show. Now they’ve begun to power up.
Here’s my playbook.
1 – $1 trillion infrastructure bill makes these stocks unstoppable
People ask me all the time if One Bar Ahead™ is “all that.” In a word, yes. Admittedly, I’m biased because I write it but this isn’t new news.
In fact, I outlined which two infrastructure stocks to buy five months ago in the April issue. Anybody following along is already pulling ahead even though most folks are just starting to think about what to buy.
One of my recommendations, Visa (V) has already jumped 8.9% in line with the markets. The other has risen 11.7% and is poised to pull even farther ahead now that the bill has passed.
The key when it comes to a situation like this one is not thinking in terms of infrastructure like most folks, but the money that powers it.
And there are $3.5 trillion reasons why.
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2 – Work at home, take a pay cut
Google announced yesterday that the company will be reducing pay for remote workers who’ve relocated to lower-cost living areas. That’ll lead to a lot of grousing but there’s another side of the coin.
First, big tech margins will expand as this move is paralleled by other companies.
Second, it will become very clear very quickly which cities are really anti-business and which ones are truly pro-living.
Third, I wonder about housing prices and consumer debt. I have to imagine more than a few people bought more home than they can afford as part of the deurbanization process we’ve been talking about for months.
3 – Don’t buy obsolete businesses
The new “Suicide Squad” movie flopped at the box office with a $26.5m take on opening weekend – but HBO Max says it was their 2nd biggest release on the streaming platform.
This highlights a couple of things to me.
First, I think we’ll see an entirely new crop of movie theatre franchises that focus on die-hard cinema fans. After all, if most people can watch movies in the comfort of their own homes, only the most dedicated viewers who want the “full experience” are going to be the ones going to in-person theatres. It makes sense to tailor the experience to them.
Dare I say it, AMC could even lead the charge if it reinvents itself. That, of course, remains to be seen which is why I do not own shares at present.
Second, more tech giants are going to buy movie studios in a move that will help them generate content for their own platforms a la Amazon and MGM Studios.
4 – Even Softbank says “no” to China
Softbank has a history of being *cough* cavalier *ahem* with its investing so this is a biggie. Even they’re slowing down Chinese investments, citing regulatory uncertainty.
Can’t say I blame ‘em … a $1.5 trillion buzzcut is nothing to take lightly.
5 – This is as rich as it gets!
I don’t even know where to start on this one. Notoriously “green” President Biden has called on OPEC to increase oil production to decrease pump prices. If you don’t own any traditional energy stocks, you might want to reconsider.
My fav is Chevron (CVX).
Bottom Line
Anybody can pick stocks.
Knowing how the game is played is what gives you the edge.
Learn, because that’s how you get ahead and stay there!
Let’s make it a GREAT day!
I’ll be with you every step of the way.
Keith
