Editor’s Note: As Chief Investment Strategist of Total Wealth, Shah believes in making his track record of recommendations easily accessible to all readers within seconds – and that’s why he’s compiled an Archives page.
Been to the grocery store lately? Then you know that food prices are surging.
The U.S. Federal Reserve refers to that as “inflation” – a clinical bit of jargon that fails to capture the sticker-shock pain your family feels every time you wheel a shopping cart into the checkout line.
Central bankers also tell us this inflation is “transitory.”
But I’m here to tell you that it’s not.
Food prices have been rising for almost two years; they really accelerated during the pandemic and have never looked back.
And it’s only going to get worse.
Thanks to surging demand both here and overseas, the multi-year “Megadrought” in the southwestern United States, an ongoing “overhang” from the COVID-19 pandemic, and foreign-trade gamesmanship from Beijing, agricultural commodities are soaring in price.
Just look at the “Big Three” of ag commodities – wheat, corn, and soybeans.
Wheat, the key ingredient in flour, bread, cookies, pastries, and pasta was already at a seven-year high – and just logged its biggest weekly climb in almost two years on expectations of strong global demand and lower production from Russia, the world’s No. 1 exporter. Cold temperatures have hit winter wheat crops in the Southern Plains and Central states of America. And, according to FranceAgriMer’s cereal crop report, France’s wheat and barley crops have deteriorated, too.
Corn, which goes into cereals, snack foods, soft drinks, and other sweet foods, is already at its highest level since 2013 – thanks to lousy weather that’s delayed planting in such crucial growing regions like the United States and Brazil. The U.S. Department of Agriculture said that cold weather could slow the germination of newly seeded corn. U.S. corn crop was 8% planted as of Apr 18. The crops from the 2020 harvest have also been deteriorating.
Finally, we have soybeans, used in soymilk, tofu, and as protein for cattle – meaning they influence meat prices. Soybeans are brushing up against eight-year highs. Tightening global grain and vegetable oil supplies just ignited the biggest weekly rise in soybean futures since May 2019. Meanwhile, the Chinese are trying to import more soybeans to meet strong demand from that country’s livestock sector. And shipments from Brazil – the world’s top exporter – dropped to their lowest level since January 2017. The Farm Bureau says cool, dry weather in the Midwest could hurt soybean crops, although U.S. farmers plan to plant 87.6 million acres of soybeans this year – the most since 2018 – to capitalize on that demand and the higher prices the supply squeeze will create.
So, yes that basket of groceries you’re bringing home to your family will continue to take bigger and bigger bites out of your household budget.
Here’s why I’m sharing this all with you today.
I’m decoding the ag-commodity surge, explaining the inflationary spike still to come, and identifying some of the companies that stand to be the biggest beneficiaries. You can buy these shares, ride along as they profit – and make enough to transform food-price inflation into a non-factor in your household.
Coinbase’s stock came out of the gate hot to trot, but it’s been acting more like a dog than a pony since its debut.
Apr 26, 2021
Now that the markets have opened, it’s more important than ever that you see this.
You’ve had some time to go through the Weekly Watchlist I sent yesterday – which you can still see by clicking here. Today, I’m taking a deep dive into EVS and the plays that could make it big this week.
So, grab a pen and paper. You might want to write these down.
Just click on the video below to get all the details…
Here’s what I’ve got for you today…
It’s a company with a lock on government contracts across the globe – just when Biden’s White House is looking to sink trillions into infrastructure.
It’s a company whose earnings are projected to explode tenfold over the next year – dangling a potential “10X gain” for investors shrewd enough to stake their claim now.
But here’s the best part of this stock-market story…
I’m talking about a company whose stock is trading at less than eight bucks a share.
That’s right – a $7 stock.
Welcome to the world – and the power – of low-priced stocks.
Not penny stocks. Not junk stocks.
But cheap stocks.
More specifically: Low-priced stocks, where the under-$10 share prices make it easy for you to grab big stakes – and where those big stakes can give you 10x gains on the stock and the same on your portfolio.
In yesterday’s Total Wealth, we outlined the very real “10X” allure of single-digit-sticker-price stocks – and even showed you how to find them.
Apr 21, 2021
Thank you for joining the Total Wealth community. You’re all set to receive everything on the Coinbase trade for Tuesday. Just keep an eye on your inbox, and I’ll be there soon. To make sure you are able to receive …
Take-Two Interactive Software Inc. (NasdaqGS:TTWO) as the gaming gorilla behind such mega-hits as the Grand Theft Auto, NBA, Mafia, and Red Dead Redemption franchises – and a firm with a market value of more than $20 billion and a share-price trading peak up near $215.
There was a time, however, when Take-Two was an under-the-radar “cheap stock” – indeed one that was trading for less than 10 bucks a share.
For folks keeping track at home, that’s a 2,050% windfall from a single-digit-share-price stock.
And Take-Two isn’t the only one like this.
There’s also Patrick Industries Inc. (NasdaqGS:PATK), a building products company that’s now worth more than $2 billion and whose shares trade at about $90 each.
There was a time when Patrick was worth less than $25 million – and its shares were trading at about $1.20.
For investors who played this cheap-stock play, that’s a windfall of 7,100%.
Or how about LendingTree Inc. (NasdaqGS:TREE) – the fintech leader that’s pretty much a household name these days. This go-to lender recently had a $3 billion market value and a stock price up around $220.
But there was also a time when LendingTree was worth a minuscule $60 million – with a stock price down around $5.50.
From that point to today, we’re talking about a total return of about 3,800%.
Now, I’m not sharing these stories just because I love an underdog.
If you want to make money – real money – look at these single-to-low digit stock plays.
And this isn’t just me talking: Research by academics and institutional players backs up everything I say.
If you look at the 50 biggest winners of the last decade, 39 of them started out as small- to mid-cap plays.
And quite a few of them were also low-priced (as in cheap) stocks, all with great fundamentals – like the ones we’re talking about here – indeed, the same ones I seek out for you folks here at Total Wealth.
In this two-day special report, we’re going to show you how it’s done.
Today, we’re going to show you why cheap stocks can be so hot.
Tomorrow we’ll get you started with a $7 stock to play.
For Options Tuesday, we’re playing the bond market rally.
You know, the rally that in about 10 days just took the 10-year Treasury from a 1.79% yield to 1.54%.
Yep, the bond market rally that crescendoed last week right when economic data showed the fewest new unemployment claims since March and retail sales skyrocketing 9.8%.
That bond market rally.
Now that the markets have opened, it’s more important than ever that you see this.
You’ve had some time to go through the Weekly Watchlist I sent yesterday – which you can still see by clicking here. Today, I’m taking a deep dive into these companies, and the state of the market. Everything is elevated and, while I’m still bullish, we need to stay on our toes.
You guys had questions, and I have answers.
In today’s BS.H segment, I go over all the stocks you guys asked me about, running from Netflix and Apple (both strong holds), to COIN, Gold, and clean energy stocks.
Apr 15, 2021
Financials are the ultimate cyclical stocks.
And banks are the ultimate financial stocks.
The fact is, I love banks. And I’ve been touting them since last summer – indeed, I was ahead of the crowd on predicting their rebound.
I still chuckle over the good-natured grief I received last year from Fox Business News host Charles Payne when I appeared on his “Making Money” show and recommended financials.)
Today, Charles repeatedly congratulates me for having made that “call” before anyone.
The fact is that – by being ahead of the crowd in making banks stocks a “Strong Buy” – we reaped the big returns that stem from being first.
But if you missed that prediction – or maybe weren’t able to act on it – don’t be concerned: I still see the right bank stocks as big moneymakers for investors.
In fact, my newest call is an updated call on financials, on banks. And you – my Total Wealth followers – are hearing it first.
In yesterday’s TW – as part of our deep-dive look at the cyclical-stock beneficiaries of the strongest U.S. rebound in decades – I promised to bring you a stock play … and this one is a “stone-cold bargain”
Today, I’m keeping that promise.
It’s a stock that’s set to bring you a gain, in my opinion, and based on my analysis, of 50% on your money – and quite possibly more.
As the American economy muscles its way out of the pandemic morass, this is one of the ultimate stocks to buy and profit from as you go along for the bullish ride.
MarketWatch sees the insider selling at sensitive-to-the-economy companies like Carnival Corp. (NYSE:CCL), The Walt Disney Co. (NYSE:DIS), Goldman Sachs Group (NYSE:GS), Morgan Stanley (NYSE:MS) and Yum Brands Inc. (NYSE:YUM) – and views it as a possible warning that “the end has arrived” for cyclical stocks.
Investor’s Business Daily peruses S&P 500 market data and concludes that American Airlines Group (NasdaqGS:AAL) and other cyclicals are “grossly overvalued.”
And Barron‘s hammers the stake all the way into the cyclical story – cautioning investors that tied-to-the-economy stalwart U.S. Steel (NYSE:X) is “one of the most-overvalued stocks in America.”
Nervous Nellies all of them. Sycophantic mouthpieces for a hidebound Wall Street.
Tune them out, I say. They’re wrong.
Indeed, I like all those stocks.
All of them.
Apr 13, 2021
One of my favorite things about trading is taking a reasonable amount of risk on a speculative-type trade and having it pay off… big time.
The key to unlocking big gains is lining up an upcoming catalyst with an options trade that has the right reward-to-risk profile. Some pros call these kinds of trades asymmetric risk trades, but I like to call them “multiplier trades” because they’re trades where the upside is 2x, 3x, 4x, or more than the downside.
Today marks the first edition of my Watchlist. From now on, every week, I’m going to tee-up what I’m watching in the days ahead, why it’s important, and how to trade what’s hot and what’s not.
This week is going to be crazy, I can guarantee you that.
Apr 07, 2021
Click here to download the PDF version You can’t go anywhere these days without hearing about SPACs, and there’s a good reason for that. Wall Street refers to these by their technical name, special purpose acquisition companies, and they are …
Apr 07, 2021