Investing in Immortality?!
Sep 17, 2021Good morning!
The markets feel tired … or perhaps it’s just me. Either way, I’m in to win!
Here’s my playbook.
1 - C-Suite optimism tanks; here’s how to get around that
Evidently, my fears about changing attitudes in the C-suite from a few weeks ago were well-founded. A new report from Deloitte Global shows a marked decline in optimism amongst CFOs surveyed.
Just 54% think the economic outlook is set to improve over the next year. Only 66% are optimistic versus 75% the previous quarter, a decline of nearly 10%. Talent, retention, morale, disgruntlement and rising wages are viewed as problems.
Fortunately, data also shows that companies investing through crises tend to emerge stronger for the hardship especially when it comes to big tech. Not only that, but those same companies are capable of protecting their margins, retaining workers AND boosting profits.
You know what to buy!
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Anchor your retirement with a few “must have” stocks
Certain stocks are a “must-have” when it comes to anchoring your retirement, especially when they offer reliable, regular dividends driven by the biggest trends of our time. There are just five that matter – and ALL are backed by at least $1 trillion in spending that has yet to happen. Get the playbook my team and I use every day.
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2 – Investing in immortality – 4 stocks to get you started
I stopped by Charles Payne’s show yesterday on the Fox Business Network, always an honour! He asked me about investing in immortality using moonshot technologies outlined by a recent Bank of America report.
Here are four stocks to get you started and the reasons why.
3 – China’s Evergrande is about to self-destruct – why you should care
Rumours are flying that Chinese mega-developer Evergrande is going to implode. Debt is reportedly $300 billion+. The company has warned twice in the past two weeks that it may default.
Here’s why you should care.
Foreign bondholders are particularly at risk. JPMorgan estimates that there are more than 128 banks and 121 non-banking institutions at risk of “cross-default” if Evergrande goes feet up.
Harvard Professor Kenneth Rogoff and Beijing Tsinghua University professor Yuanchen Yang estimate that a 20% decline in Chinese real estate activity could cause a 5-10% decline in Chinese GDP … even if there’s no banking crisis.
The risks of contagion outside China are very real. For instance, Australia’s iron ore business could get hit as could EV projects in Europe where Evergrande has spent liberally.
4 – The end of an era
The last Sears located in Illinois is shutting for good. Transformco, the company that purchased Sears out of bankruptcy says that, “this is part of the company’s strategy to unlock the value of the real estate and pursue the highest and best use for the benefit of the local community,”
Never mind that “fast Eddie Lampert” former Sears CEO effectively said the same thing for years as he bled the company dry.
If you’re part of the OBA Family, you know what to buy for retail (because we covered it in the August issue). Management takes community responsibility seriously and, what the heck, turns a tidy profit too!
5 – The one company capable of challenging Amazon
Walmart+, Walmart’s alternative to Amazon Prime reached 32 million members after launching roughly 12 months ago. Deutsche Bank recently put a $185 target on Walmart, and I think that’s doable.
Bottom Line
The rules of the game have changed.
Every investment you make from here forward must be in companies capable of operating at $1+ billion scale or don't buy it!
Now, let’s finish the week strong.
MAKE it a great day!
Keith :-)
