Week 1
The market remains kind.
I continue to buy the inverse beta stock TZA when the market is up and sell when the market is down, but I always hold a minimum of 3% in my portfolio. Along with potential profits from TZA, I have increased cash holdings in case a market correction serves up buying opportunities. For the week of March 6 – 10, I recommend taking a look at some of the stocks I intend to buy: DPZ, BOX, AVGO, BURL, PCLN, AAOI, MBLY, CMG, and HXL. You will find that AAOI has been on fire and may continue that way. All others are good, reliable stocks with a long-run ahead of them. Good Investing!
Week 2
Get ready for a bumpy ride.
There is a greater short-term consolidation risk due to various factors such as
1. A slow down in the Trump agenda because a) there is no health care bill that can pass the Senate, b) no acceptable tax reform bill, and c) no budget that is remotely consistent with the Trump agenda.
2. increased certainty of multiple interest rate hikes by the FED that occur faster than expected.
3. U.S. debt ceiling and related government funding issues that result in a fight between government branches.
4. A possible EU exit by France if French elections go that way.
5. An uptick in inflation that also puts upward pressure on nominal interest rates.
Government Debt and Funding Issues Chart . . . Very Scary!
The best performing sectors are Financials (a stock fund such as KRE is a good bet), industrials, and technology. Individual stock picks for the week of March 13 – 17 are: JBT, ADP, MESO, TEF, and NTIP. I also recommend the variable interest rate fund VRP that pays a dividend. Good investing!
Stock Picks (Recommendations) for the week of March 20 – 24 are: NTRI, ON, BX, AEE, RTN, and APO. The last three also pay dividends. Some short-run market angst due to the question whether Pres. Trump can meet his agenda (the market likes that he at least kept his word) may occur during the week on Thursday but politics do not offer a basis for investment, only volatility. Some good small cap funds are ABHSX, BOSUX, and BRSVX if you want to avoid picking stocks. Keep in mind that small cap stocks and funds are relatively volatile in the short-run but also tend to exhibit higher rates of long-run growth.
Stock picks for the last week of March, March 27 – 31 are: FIZZ, ZENO, SOXL, and AMAT. SOXL is a 3X leveraged semiconductor fund that exhibits very strong growth. With the question whether Trump gets the more important aspects of his agenda accomplished (tax reform and infrastructure spending) on the table, the markets appears locked into a trading range. Go checks and balances! That said, the market’s driving factors are not political but real parameters involving the state of the economy, interest rates, and company earnings. All of the these fundamental factors will stay in good shape for the foreseeable future. In fact, earnings will continue to accelerate. I’d buy my market beating stocks on market dips and pull-backs and expect a positive return for your efforts. Then set back and have a good glass of wine. Good investing!
