Friday Investment Talk: Christmas Gifts, ETF Inflows, Housing, and US Population

Ray Dalio suggests gifting gold coins for Christmas, while investors set records for ETF inflows in 2021. ESG ETFs grew while IPO ETFs underperform. Markets sold off in December providing a bullish setup in two pet supply companies as put/call ratios roll over to buy signals for the S&P 500 index. Beware of mid-term US Read more ➝

Flattened Alibaba

Analysts have a neutral view of Alibaba (BABA) going into 2022. They see revenue across all business lines slowing from pandemic levels. But growth rates are still strong, and new business lines are just in their infancy. The negativity among analysts is palatable. Longer term, they maybe overdone.

More Beat Up Blue Chips

Recently we highlighted several best-of-breed large capitalization companies that have materially under performed this year. Another three companies are examined below. These are not speculative names. They are not richly valued technology or consumer discretionary stocks either. They have wide defensive moats and should be beneficiary of strong cyclical and secular uptrend. But they under performed enough during 2021 with Read more ➝

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Friday Investment Talk: Oil and Energy, Real Estate, Sector Rotation

Energy markets look to be in a long term bull market with continued strength in oil prices fueling additional exploration. Real Estate prices for residential housing are rising faster than rents. Likely rents will play catch up in 2022. Sector rotation towards quality and low volatility is taking place since the Federal Reserve has began Read more ➝

Beaten Down Blue Chips

Several high quality companies now sell for discounted prices after the strong sell since Thanksgiving. The main US indexes maintain relatively high sales and earnings multiples historically. This masks the damage done to most small stocks and even some blue chip names that most astute investors continually monitor for buying opportunities. We highlight three stocks Read more ➝

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Friday Investment Talk: Macroeconomics, Financial Repression in 2022

High debt levels and inflation create difficulties for investors in 2022. ‘Financial Repression’ could become a household phrase. Inflationary pressures will put certain sectors in the spotlight. We watch oil and gas exploration and production, consumer staples and real estate as places for outperformance. A quick look the Russian ETF (RSX) reveals its need to Read more ➝