Monday, May 6, 2024
With my conservative investment strategies, I do not have much reason to worry about the current stock market correction. I know that if I accumulate dividend-paying shares for cheap while others are selling, my income and wealth will be much greater when the market recovers. And it always recovers. I am, however, concerned about a […]
Wall Street analysts would have you believe that the global supply chain problems will be over with soon. Spoiler alert: they will not. We have many months before the supply chain issues abate. The demand for physical goods that began during the pandemic only highlighted the infrastructure shortcomings that could take years to fix. Investors […]
It was the most challenging week in recent memory for blue chip retailers, with inflation and supply chain constraints hurting earnings and scaring away investors. Options action was mixed in Consumer Staples Select SPDR ETF (XLP), the leading retail sector ETF. One massive put spread that traded in XLP options during the week appears to […]
Selling puts on the Proshares Ultra VIX Short-Term Futures ETF (UVXY) is one of my go-to trades when implied volatility is high and I think it will stay elevated in the near term. UVXY is supposed to correspond to 1.5x the performance of the S&P 500 VIX Short Term Futures Index. The short of it […]
Several key retail stocks sold off sharply last week as inflation and supply chain issues took a toll on earnings. Target (TGT) was hit the hardest and dropped 25% in a day. Costco (COST) and Walmart (WMT) also saw their share prices decline. Options action was mixed on TGT, with some options traders potentially looking for a […]
For investors, energy companies have been the bright spot in a very dark 2022 stock market. The Energy Select Sector SPDR ETF (XLE) is up 43% year-to-date, while the broad-coverage (including energy) SPDR S&P 500 ETF (SPY) has dropped by 18%. Energy companies divide into three sectors: upstream, midstream, and downstream. So far this year, […]
The Russian invasion of Ukraine has awakened other countries in Europe, which now realize they must recalibrate their security strategies and increase defense spending. Even Germany, despite the pacifist strategy it has followed since the end of World War II, said it would sharply increase its spending on defense to more than 2% of its […]
Most sectors of the market have been creamed recently… But, underneath the surface, I see a food stock that is about to break out to all-time highs. They pay a nice dividend… More importantly… While other food stocks, like Kraft-Heinz (who are way off from all-time highs)… This one stock is set to break out. […]
Investors may want to use the pullback in electric vehicle stocks as an opportunity. Global leaders want millions of EVs on the roads and automakers are abandoning combustion engines for electric vehicles. On a global level, sales are only accelerating. In the U.S., as Car and Driver notes, “American car shoppers seem to have discovered […]
When the stock market goes into a bear market, it drags down almost every stock. Sound, profitable companies see their shares driven down right alongside the perhaps more deserving stocks that may have been overvalued. If you understand how a company operates and the concept of relative valuations, you can, during a bear market, find […]
