TradeSmith Presents: The Five Biggest Investing Takeaways of September 2022

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Since we started doing our investing takeaways for the month, there unfortunately hasn’t been a month when we could point to a rosy economic outlook.

It’s an understatement to say the housing market is in trouble, with people being priced out of homes as mortgage rates hit 41-year highs.

Inflation had a measly “cooling” from 8.5% in July to 8.3% in August.

And the S&P 500 seems to be on a mission to outdo itself each day and reach a new yearly low.

Having said that, by the mere fact that you are reading this right now, I’m encouraged.

You aren’t sticking your head in the sand and just hoping things will get better. You’re turning to us for analytical tools that remove the emotion from investing. You’re reading our publications to reduce the noise from the news and focus on what’s important, and to put new opportunities and pitfalls on your radar.

You’re being a real investor.

And from our stories in TradeSmith Daily this month, you’ll see that there’s always an opportunity… if you know where to look.

Takeaway No. 1: Special-Situation Central: Play the Arbitrage Game on This Stock to Spark a 25% Profit Opportunity

From takeover plays, breakups and spin-offs, stock splits, share buybacks, recapitalizations, activist targets, and more, there are “special situations” that offer moneymaking opportunities to the astute investors who take notice.

Each month in TradeSmith Daily, we put one of these opportunities on your radar, doing all the hard work and research for you so that you can just sit back and evaluate the profit potential.

This month, I shared why Microsoft Corp. (MSFT) wants to buy Activision Blizzard Inc. (ATVI) and why it could provide a 25% return from today’s prices.

Takeaway No. 2: The Start of the Commodity Supercycle (Part 1 and Part 2)

Senior Analyst Mike Burnick believes we are entering a “commodity supercycle.”

Underinvestment has been the trend in the oil and gas industry for the past several years, with $341 billion invested in the oil and gas sector in 2021 compared to $700 billion in 2014.

Mike believes with energy demands around the world only increasing and renewable energy still not yet ready to meet that demand, a new importance will be placed on meeting energy needs with oil and gas, sparking a commodity supercycle.

In Part 1, he gives more details on why the supercycle is forming.

In Part 2, he shares three companies that can make you money during the supercycle.

Takeaway No. 3: Mark Zuckerberg Is Worth $54.6 Billion in the Real World. Now He’s Building Virtual Worlds to Make Even More Money.

The metaverse may seem like kid stuff or a little bit silly right now, but it would be a mistake to write it off.

The global metaverse market was valued at $40 billion in 2021, and one man is positioning himself to make the most money from it: Mark Zuckerberg. Changing the name of his company from Facebook to Meta Platforms Inc. (META) wasn’t a gimmick, as Zuckerberg realizes that the next step in social networking is going to be through the metaverse.

Anything you can do in the real world, you’ll be able to do it virtually: play games and sports, have conversations, watch movies, and attend concerts.

And advertisers will line up to sponsor those experiences, with the cash rolling in for META.

Your newest TradeSmith team member, Jason Bodner, the firepower behind our new Quantum Edge Pro service, has everything you need to know about Zuckerberg’s plans right here.

Takeaway No. 4: This ‘Money Saver’ for Grocery and Gas Could Be a Moneymaker for Shrewd Investors

I know I’m not alone in seeing the shelves of my local grocery store more empty than usual, and when they do have what I need, it costs an arm and a leg.

That’s why membership-only warehouse clubs are raking in the cash.

A survey found that a family spending $150 a week at a conventional supermarket could save up to $2,000 a year or more by shopping at a membership-only warehouse.

In addition to groceries, some of these warehouse clubs offer discounted gas, tire centers, eye exams, travel packages, and more, making them one-stop shops for almost anything you could want or need.

And while the S&P 500 is down 22% this year, this one company has not only weathered the difficult economic conditions but triumphed, with shares up 16% so far in 2022.

You can find out more on why this company is offering even more upside ahead.

Takeaway No. 5: Buy This, Not That: Semiconductor Stocks Battle for Supremacy

In our Buy This, Not That series, we pit two companies against each other, run them through our tools, and see which one comes out the winner — the one that deserves your hard-earned money.

For this month, with the U.S. government focused on turning America into a global semiconductor hub, we put ON Semiconductor Corp. (ON) and Micron Technology Inc. (MU) in the ring to battle it out.

You can see who came out victorious here.