Banks
Precious Metals are a Waste of Your Capital, Invest in These Banks Instead
There was a running theme this week in the stocks you sent me: metals.
Gold, silver… precious metals that everyone expected to pop with the war in Ukraine raging on – but that’s not what’s happening. Frankly, GLD, GDX, and SLV are a waste of your capital right now. There may be a little bit more upside to each, so put your trailing stops in place, take your profits, and get out.
There are better places to put your money, including an ETF trade and a few of my favorite banks.
Check out my video below to learn more or click here to read today’s transcript.
Three Micro Caps Ready to Pop
Micro caps, or petite companies valued at less than $300 million, are becoming all the rage among investors – and I love that. These companies are the underdogs of the investing world that, if played right, can make you a filthy rich once they burst forth their true potential.
That’s why I want to start you off with Surgalign Holdings Inc (SRGA). On August 6, 2021, the spine-related micro-cap medical technology company, reported Q2/2021 results that included total global revenue of $24.8 million, which represented a 21% increase over the same period a year ago. Earnings for the quarter were a $0.09 loss, which was considerably better than estimates that called for a $0.12 loss for the period.
Those aren’t bad numbers, but on the same day shares sold off as much as 18.5% in a single session. Since then, though, the stock has rebounded to the upside, filling that initial gap, and then some.
As the American Economy Flexes its Muscles, this is the “Ultimate” Stock to Buy
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.
Four Reasons to Cash in On the Strongest Economy in 38 Years
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.
In fact, if you don’t own them already, buy them – and I’ll tell you why.
Make Legendary Moves (and Money) with this New Strategy
Investor Peter Lynch achieved “legend” status during the 1980s – and it wasn’t just because of his best-selling book One Up on Wall Street.
It was the fact that he made a lot of mutual fund investors rich.
While helming the Fidelity Magellan fund from 1977 to 1990, Lynch delivered an average annual total return of more than 29% – a performance that would have turned a mere $10,000 investment into $280,000 at the time he decided to leave.
But I’m going to let you in on a stunning secret: Most of the huge gains Lynch made for investors was due to a strategy that almost nobody ever talked about.
And Lynch wasn’t alone.
Legendary hedge fund manager and value player Seth Klarman has used this strategy throughout his career. Edward Thorp, one of the best arbitrage and quantitative investors of all time, continues to use it.
And this is why, in Tuesday’s article, I told you to hang on to your bank stocks. There’s still money to be made on banks – and it’s with the same strategy that made these men filthy rich.
The strategy itself is as simple as it is powerful, yet virtually no retail investor uses it.
Heck, most investors don’t even know about it.
I’m Still Bullish on Bank Stocks – Here’s Why
Bank stocks have had a really good run higher lately, but last week and early this week, they’ve been hit hard as investors seem to be fleeing the country’s biggest and most profitable bank names.
Those investors are making a huge mistake – and I hope you’re not one of them.
In fact, now’s the best time to buy bank stocks.
Will Political, Regulatory, and Tax Threats to Big Tech Kill the Stock Market?
Technology stocks have powered America’s markets higher for more than two decades, including leading almost parabolic rallies on the heels of every selloff, correction, or bear market since 2009.
That certainly includes “Big Tech” powering equity markets higher off their coronavirus crisis lows.
But now mega-cap technology darlings face political, regulatory, and tax threats, possibly all at once.
Big Banks: Buy, Sell or Hold?
The country’s biggest too-big-to-fail banks have all reported second quarter earnings and the results were chock full of good news and bad news, depending on the bank and its banking model.
What the banks’ earnings, profits and losses tell us about the economy, about their health, and about the outlook for their stocks gives investors a window into the economy and how to play the banks.