Most investors do not own enough of this!
Oct 05, 2021Good morning!
Stocks are trying to make a run higher after yesterday’s selloff, but I am not sure there’s enough buying to make it stick … yet.
Here’s my playbook.
1 – Oil at 7-year high – do you own enough?
I’ve recommended several oil companies recently because they offer a combination of ultra-low beta (meaning they’re less volatile than broader markets), a great breakthrough portfolio designed to move them beyond the dinosaur juice they produce now, and an immediate plan to make the most of current energy reserves. WTC hit $78 a barrel, a seven-year high. I think it goes higher.
Most investors could double their oil investments and still not have enough.
2 – Rebound or not, I’m not buying
Facebook shares are up 1% in the early going after a brutal 5% selloff yesterday following the whistleblower’s shocking 60 minutes interview. Facebook has chosen obfuscation, power, and profits over users and I think the 60-minutes interview is the tip of the iceberg. Facebook may not be able to pull outta this one unless there is a coup at the very top to restore faith.
Not that I had anything to do with it, but here’s what I said yesterday morning ahead of the opening to the fabulous Stuart Varney when he asked me if I’d consider buying the stock.
3 – This could be one of America’s favourite chip makers back on the map
Intel is launching 2nd gen chips with the goal of expanding the company’s neuromorphic computing effort. That’s a $5 word for technology that mimics the human nervous system, and a key stepping stone to more advanced AI.
4 – Rapid Covid tests at last
There are a handful of companies working on Covid-19 breathalyzers capable of producing test results in as little as 30 seconds. It’s too early to pick a winner but this speaks to constantly accelerating science. What they do with the data is the real investment play … for now.
Palantir (PLTR) anybody?!
The company just announced a mixed shelf offering and I think those worried about dilution are off base for reasons I laid out in yesterday’s alert for paid One Bar Ahead™ subscribers. If you’re not one of em and would like to know more, click here. If not, totally cool with me.
5 – One pot stock you can bank on?
Income starved investors in search of a lasting buzz might consider taking a look at Innovative Industrial Properties (IIPR). Shares are down nearly 10.4% from the company’s most recent 52-week "highs". The yield is just 2.64% but, critically, the company continues to add to its portfolio of licensed cannabis growth properties.
Bottom Line
Many people feel the compulsion to “do something” especially if they’re new to investing or trading.
Not true.
In fact, some of the best decisions are to do nothing.
Owning the right stocks can give you the confidence needed to do so.
Let that sink in.
You got this – I promise!
Keith
