TradeSmith Presents: The Five Biggest Investing Takeaways of July 2022
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Since we started our investing takeaway series two months ago, I would love to tell you that the world has become a much more predictable place.
Inflation hit 9.1%, the highest rate in 40 years.
The Centers for Disease Control and Prevention projected that 40 states and territories would see an increase in COVID-19-related hospital admissions.
Economists at Goldman Sachs are saying the possibility of a U.S. recession over the next two years is 50/50.
You can also throw on top continued supply chain issues, companies slashing their revenue forecasts and missing expectations, the war between Russia and Ukraine, a housing market that’s falling apart… and there are still more than two handfuls of concerns I could list out.
I know I don’t have to sugarcoat this. You’ve seen firsthand that this is a tough environment that can test your resolve.
But from reading many of your most recent comments, I feel optimistic.
You aren’t throwing in the towel; you’re standing up and being real investors — the kind who avoid reckless speculation, find companies with moats, focus on income-generating assets, and build watchlists so that when our tools say it’s time to buy, you can pounce.
Each morning, I hope TradeSmith Daily is contributing in those efforts.
With July coming to a close, I want to highlight some of the top investing takeaways we shared this month so you can head into August prepared to take on whatever comes your way.
Let’s jump right in…
Takeaway No. 1: Why Airline Angst, a Dominant Dollar, and a Suddenly Newsy Netflix Are Keys to Your Next Money MoveI was thrilled with the overwhelming response we had to the new series TradeSmith Snippets, and I’m happy to say that it will now be a regular feature of TradeSmith Daily.
There is so much noise out there in the news that I know there is decision fatigue on what stocks to put on your shopping list and which ones to leave on the shelf.
TradeSmith Snippets is designed to help you go beyond the headlines and understand how today’s top stories could affect you as an investor.
In less time than it takes to drink a cup of coffee, our team highlighted these points in the TradeSmith Snippets inaugural issue:
- Increased air travel doesn’t mean airline stocks are a buy; a different sector benefits from travel and has stocks in our Green Zone.
- As the dollar gets stronger, some companies benefit — while others just get burned.
- Senior Analyst Mike Burnick called Netflix Inc. (NFLX) the “Buy of the Century,” but before making a move, he’s waiting for the streaming service to stop the bleeding of subscribers. He has an update on the latest subscriber totals and what it means looking ahead.
Takeaway No. 2: Taking the ‘Cold Plunge’: How Dumping Your Losers Is a Winning PlayIf the general wisdom is “an apple a day keeps the doctor away,” I’d like to propose a different trick for maintaining your health.
When I came back from a recent trip to New York and started experiencing the chills, aches, and other discomforts of a spiraling virus, I resorted to my usual cure-all.
A cold plunge.
For those of you who aren’t familiar, a cold plunge is a specialized ice-cold bath. It’s great for inflammation, pain — and for beating back seasonal maladies.
It’s unpleasant at first, but the long-term health benefits can be huge.
And that same “cold plunge” approach can be used to dump your losers and kickstart the health of your portfolio.
The shock to your system is intense, but you feel better once you’re on the other side.
Takeaway No. 3: Are You Ready for the Biotech Revolution? Here’s How to Set Yourself Up with ProfitsSpeaking of health benefits, with monkeypox declared a global emergency, new variants of COVID-19 forming, and two cases of a deadly virus in the same family as Ebola being reported in Ghana, the need for new treatments and vaccines is only going to accelerate.
And there are a few ways to position yourself to profit from the advances in medicine.
Takeaway No. 4: The Top 3 ‘Money Never Sleeps’ Stocks to Buy NowMike Burnick loves the movie “Wall Street,” and it’s one of the reasons why he’s spent the past 35 years in the investment business.
In an iconic scene, the corporate raider Gordon Gekko wakes his protegee with an important message.
“Money never sleeps, pal. Just made 800,000 in Hong Kong gold. It’s been wired to you. Play with it. You’ve done good, but you gotta keep doing good. I’ve showed you how the game works. Now school’s out.”
Mike started thinking about the companies that offer products and services that people use day and night.
No matter where you are in the world or what time it is, these companies are always making money.
By owning shares, you get to sit back and reap the rewards of their hard work, collecting part of their profits via dividend payouts.
These are the three stocks on Mike’s “money never sleeps” list.
Takeaway No. 5: One Inflation-Resistant Stock to Buy, One to Avoid — and a Strategy That Hasn’t Been This Cheap in DecadesInflation hasn’t been this bad since 1981, so you have to be more selective in what you invest in than ever before.
The bad news is that a lot of companies aren’t built to handle this type of environment very well.
The good news is that there are some companies that can survive accelerating inflation and still make you money.
Mike recently shared one stock to avoid during a time like this and one to buy, which you can access right here.