Awesome workshop last Saturday! We were talking about stocks that is set to continue to rally and we’re making a list, and checking it twice! I said these are the stocks from sectors that have long been undervalued, which means they are profitable but government regulation had pinned them down so investor sentiment is poor — but that has changed! Yesterday, as expected (from news surrounding his possible Cabinet appointments) Donald Trump, appointed a former Goldman Sachs executive to be Treasury Department and billionaire Wilbur Ross in Commerce Department — known for fixing up failed businesses — these are important clues to how the “MAGA” (Make America Great Again) promise will be realized, and growth-driven policy of the Trump government.
Goldman Sachs has in fact, made a survey and concluded that after years of slowing earnings growth, a wide range of sectors are going to benefit from Trump’s policies, “expectations of lower tax rates and economic stimulus are among key reasons for the favorable outlook”
So I want to tell you my favorite stocks — and I want to emphasize in our “Invest Right Workshop” that you should find stocks that “fit you”. OK so these stocks fit me, I just love how I feel I really understand how it moves, how to profit based on the moves it makes in the timeframe I adopt, and how just “effortless” the investment is, together with strategies that I like to execute.
OK here goes :
1. Oil stocks — yes, always in the news. Big move up today also because finally OPEC got together with their oil buddies and decided on their production cut. Prices headed up with the projected growth-spurt from Trump’s policies
Cheasapeake Energy (CHK) up 9.89% to $7
Other oil stocks rising like Chevron and Exxon Mobil but not putting it here due to high price
2. Banks — US interest rates are rising for sure, and as mentioned earlier, will attract people to “save more” because the earnings from their deposits will be exponential (say with .25% interest rising to .50% and .75% ) guess what, these banks are still undervalued (measured by Price to Earnings ratio or PE) even with the recent rally, and yes, last night Trump appointed a former Goldman Sachs banker into the Treasury Department adding boost to the banking sector.
Wells Fargo – PE of 12.87 rose 2% last night to 52.92
Banf of America – PE of 15 rose 4.48% last night to 21.12
3. Consumer Stocks – certainly growth will be evident with more jobs and discretionary income so Consumer Stocks which have been paying dividends are expected to benefit greatly.
both in the cyclical / non-cyclical sectors
WMT – PE of 15.5 and pays 2.8% dividend%
PEP – PE of 22.34 but pays dividend of 2.96% (for my workshoppers, clue is in the chart!)
Visa – payments company, with all the online shopping happening, “The growth story is already very clear in the top-line performance of Visa over the past five years, where revenue has grown at a 17% annual rate. Earnings continue to soar as well, with EPS set to surge fourfold from five years ago, from 79 cents in 2012 to a projected $3.84 in fiscal 2017. In the immediate-term, year-over-year growth is set to hit 10% on revenue from FY2016 to FY2017 and EPS should grow 17%. In the third quarter, Visa earnings surged 27% ”
In our back to back workshops “Invest Right” and “US Investing” I show how to get your edge and profit from these hot stocks given the market. Join us in the next — email me stating your interest for webinar or workshops scheduled for January 2017.