The 5 Biggest Investing Takeaways of January 2023

By TradeSmith Editorial Staff

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Happy Tuesday – I’m glad you’re here with us to finish out the first month of the new year.

At the end of each month, I like to gather some of the biggest investing takeaways we’ve shared in TradeSmith Daily.

I know that it can be difficult to find the time to read every issue, and I know there may be some things you read earlier in the month that you would like to reference again.

In today’s issue, you’ll find a variety of moneymaking ideas, no matter your investor type.

From forecasts by our team of experts, to a battle between two home improvement stocks, to a dividend-stock investing strategy, to a crypto to buy not named Bitcoin (BTC), to three potential takeover targets in the year ahead, we have a little bit of something for everyone.

I know you’re busy, so let’s jump right in.

Takeaway No. 1: There Are Always Pockets of Profitable Opportunities

While a few of the usual top New Year’s resolutions of eating healthier, exercising more, and spending less time on social media may have already been broken (no judgment), I want to make sure TradeSmith is in your corner to keep you on track for your investing goals.

For that, we have our 2023 investing forecast series from our experts, who show that no matter what the market is throwing your way, they’re here to guide you on how to make money

I also held my own feet to the fire and provided an outlook, which you can access here.

Takeaway No. 2: The Battle of the Home Improvement Stocks

With the housing market cooling off, home improvement stores are expected to see a decrease in demand. If fewer homes are being sold, then that means fewer folks buying cans of paint and lighting fixtures in order to spruce up their homes and make those photos pop.

LikeFolio Co-Founder Andy Swan is seeing this tapering of demand in his real-time data, with mentions of buying a home down 24% year-over-year (YoY) and mentions of home renovations down 11% YoY.

But among that data, Andy also uncovered a housing trend that is picking up: an increase in mentions about hiring a contractor, which are up 9% YoY.

People may have delayed putting their house on the market for months or even years until interest rates went down and fears of a recession subsided. And if they plan to be in their current home for a while, they may be turning to professionals to add personal touches that require more skill than a DIY project from Pinterest.

To get the supplies they need for these jobs, many contractors start by turning to two stores: Home Depot Inc. (HD) and Lowe’s Companies Inc. (LOW).

On the surface, there isn’t much that distinguishes HD and LOW as investments.

But digging deeper, Andy can show you who the winner is in our Buy This, Not That battle.

Takeaway No. 3: Don’t Forget About the Dogs of the Dow

Early in the new year, Senior Analyst Mike Burnick likes to revisit one of his all-time-favorite dividend-stock investing strategies.

The Dogs of the Dow is a simple, two-step strategy:
  • Buy the 10 stocks with the highest dividend yield out of the 30 stocks in the Dow Jones Industrial Average (DJIA).
  • Hold them for one year.
This concept is effective because you’re starting with a list of proven, blue-chip stocks from the widely followed DJIA. These 30 stocks have been around for many years and are some of the biggest companies in the world. Plus, nearly all of them pay dividends, and the Dogs of the Dow pay you the highest dividend yields of all.

Here’s more from Mike.

Takeaway No. 4: Bitcoin Prices Race Higher Out of the Gate, But the Better Opportunity Lies in This Investable Sector

Bitcoin prices have skyrocketed to start the year, but Senior Crypto Analyst Joe Shew has his eyes on another opportunity.

“The Great FTX Collapse of 2022” underscored a massive problem with crypto’s centralized exchanges that disillusioned investors for the last time.

Until you move your crypto into your own possession (in a hardware wallet), someone else controls your assets.

The good news is that there’s a solution that cuts out the middleman altogether — and it’s one that can make you money.

Here’s more from Joe.

Takeaway No. 5: Three Potential Takeover Targets for 2023

The team recently compiled a list of three companies that could be acquired over the next year by larger firms.

All three companies offer something unique, ranging from one-of-a-kind sports content to a rich library of hit TV shows to potential treatments for a rare disease.

To get a deal done and win shareholder approval, the company making the acquisition will often offer a nice-sized premium from where the stock price of the acquisition target is trading.

We’ve been covering the first stock on the list since August 2022, and Quantum Edge Pro Editor Jason Bodner recently picked up on some unusual buying activity.

You can find out more about that – as well as the other two stocks on the list – here.

And before you go, I’d be interested in hearing what your biggest takeaways have been thus far to start the year.

Is your investing strategy working out as expected?

Are you feeling bullish?


Or are you just not quite sure what to make of things yet?

I’d love to hear what you have to say.