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.
Just because China Evergrande Group made an $83.5 million bond interest payment on October 23 – at the last possible minute under a 30-day grace period – doesn’t mean it’s out of the woods.
The giant property developer, once a Fortune Global 500 company, has $305 billion in outstanding debt, $500 million in interest due by the end of this year, and no money to pay it off. Its back is up again a wall – the $60 trillion Chinese residential property sector – and that wall is leaning back.
If Evergrande defaults on its debt and is forced into bankruptcy, the great wall of residential property in China will collapse the country’s economy and contagion will hammer the global stock markets.
COP26, a United Nations Climate Conference, is underway in Scotland and it’s not looking good for clean energy hopefuls that expected this summit to be a massive pop for green stocks.
The two of the biggest polluters on the planet, China and Russia, have refused to attend which means one thing for us…
Nov 01, 2021
We are entering a new era.
Every company is short on labor and the workers they do have are unionizing to demand higher wages, which has created a surge in employer compensation costs in key industries.
We’ve already seen the effects of this in docks and warehouses across the US, with the Transportation Department teaming up with California ports to prevent future snarls by pumping $5 billion into the industry.
Oct 29, 2021
As investors go crawling back to oil and gas to ride out the energy crisis, they’re neglecting a key player in the clean energy space that’s collaborating with Amazon to create an environmentally friendly delivery fleet.
After its initial 66% run-up in February, this company has traded back down to a bargain deal for a company with such strong prospects and financials. I fully expect another run with this stock, so…
Oct 28, 2021
We are in the throes of a spectacular bull market.
Since it started stampeding back in 2009, the S&P 500 has risen 551%, while the DOW and Nasdaq have risen even higher. And they are still climbing.
Which, on its face, is great for us – but we need to be cautious. There are many threats to a bull market, but there is one singular, systemic threat that everyone should be afraid of: rising interest rates.
Regardless of what the media says, this holiday season will be a bust for many traditional retailers.
Anyone dependent on international trade or third-party shipping will suffer from every supply hiccup from factory to sales floor – labor shortages, container shortages, rising shipping costs…
Oct 25, 2021
Any company with a stake in international shipping has gotten pummeled this month – and rightly so.
Despite claims that retail will see an incredible holiday season full of sales, it has become increasingly clear to us investors that demand has outpaced supply for almost every product on the market. Shelves are clearing out and wishful thinking isn’t going to move products from ports and warehouses to the sales floor any faster.
Which is why I’m watching companies that are doing more than just sit, wait, and hope. Companies that are planning strategically for the long-term to lock in profits for themselves and their shareholders.
There have been droves of podcasts, TV shows, and even movies that have chronicled the downfall of the “$47 Billion Unicorn” during its last attempt to go public in 2019.
If you’ve read the news recently, you know that China is unwinding.
On top of the worsening Evergrande situation, President Xi Jinping has been cracking down on Chinese tech companies utilized by the U.S., which would be bad news for companies reliant on Chinese and Taiwanese semiconductors.
As I mentioned yesterday, semiconductor demand is rising and it won’t stop any time soon. The resulting shortage has created massive backorders for all tech from PCs to washing machines – and many investment opportunities for us.
Oct 18, 2021
Semiconductors… A piece of tech people hardly knew or cared about before there suddenly weren’t enough to go around. The consequences of this short have rippled through the tech industry, from smart phones to LEDs lightbulbs, but none were hit harder than computer manufacturers.
The persistence of the work from home movement has increased demand for PCs and desktops, resulting in a flood of orders placed with hardware makers already struggling to keep up. As backlogs grow, vendors aren’t expecting to catch up until mid-2022 at the earliest.
And even then, demand for PCs and the semiconductors that make them possible could continue to grow until the end of this decade. If that comes to pass, the semiconductor industry could double, reaching a revenue between $500 billion to $1 trillion.
Oil, gas, coal… the whole fossil fuels industry has jumped to new heights this week.
And those heights are only going to get higher, so now is the time for us to dive into the best energy plays to grab before winter hits.
The green revolution is, sadly, not today’s reality.
The media would have you believe otherwise.
Yet that idea fooled even the biggest Wall Street traders and hedge funds in recent weeks.
The energy crisis in Europe and Asia has newsrooms scrambling to bring new oil and gas stories to the front page. But in this fossil fuel frenzy, they’re overshadowing an incredible opportunity with natural gas that could double your investment by next year.
Oct 11, 2021
Stagflation fears came to a head last week only to ease up going into the start of today’s trading session – and I am not surprised.
Just as I noted in last week’s stagflation piece: we are seeing inflation, but the economy certainly isn’t stagnating.
In fact, the first company I’m watching this week is a great example of the U.S.’s continued growth. Ford Motor Company (NYSE:F) has sold 9,150 electric vehicles over the month of September, which is a 91.6% increase when compared in last September.
Oct 08, 2021
Corporate scandals come and go – and while they don’t always stick, the stock almost always flounders.
In the last several weeks, we’ve seen a parade of formal hearings concerning Facebook (Nasdaq:FB) knowingly harming it’s 2.89 billion users for the sake of profits. Now, I won’t pass judgement on FB because my opinion on their past practices doesn’t matter.
What does matter is that the subsequent landslide of negative attention triggered a sell-off. And that presents us with an opportunity.
Facebook is the kind of company that will take this scandal on the chin, make a few changes, and get right back in the fray making off-the-chart profits. Its stock may never be this cheap again, so I developed a suggested investment plan for you to get yourself a strong FB position.
You’ll get that and more in this week’s Buy, Sell, or Hold.