US stock market is going through major challenges in 2022.
Fed tapering @ fastest pace
Reduction of liquidity by Fed
Interest rates spiking UP
Inflation persists
Cost pressure in economy
Supply issues
Freight cost staying high
Omicron & other variant showing up in winter
Allocation shift by Money Managers
All of the above is creating huge uncertainty for " steady as she goes crowd "
Most traders are not adjusting to new trends as they are deeply entrenched in 2021 ideas
This shift in investing thesis is a major ones which may take lot more time for many to even understand where to focus.
Many sectors which has performed lately are already looking " overbought "
XLE & Energy is leading the pack with huge gains
The best Money Manager in Oil & Gas in Canada is Eric Nuttal who is showing a gain of 186% for 2021 far exceeding Cathi Wood famous 2020 gain of 140%..
According to Eric Nuttal party is just getting started, he sees multi year major gains as cost / cash flow ratio will explode with current Oil prices......look him up in Canada & on Bloomberg BNN network
Not only energy but gaming is going to be the big winner going forward
Hotels are going to be in top 5 gainers going forward, some are already making new 52 wk highs others are following suit.
SO for 2022 I strongly recommend overexposure in Energy, Gaming & Hotels as my top 3
Yes you can follow other sectors like Airlines as 4th idea but stay with better run International carriers....
Most speculative is Cruise Lines which is taking much longer to get off the ground as variants keep taking toll and CDC not very friendly...
SO...I have highlighted 5 different reopen categories to be positioned in.....this may be long term ideas to stick with.....IF technology @ home can go UP 400% ...these may also surprise you in next 3 years.....
Good luck with your own strategy & comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: -6.45% (YTD: -6.45%)
Notable Leaders: AGCO BMEA
Notable Laggards: UPST VERI ZENV PINS PHM TASK
It was another brutal week for growth stocks and my portfolio. The prospects for a better economy in 2022, coupled with Fed tapering and tightening, has led to a spike in interest rates to start the year, hampering DCF calculations for long duration assets. This feels like a tired story given we've been dealing with it since late November, but the price action is finally scaring investors enough to create spiraling sell pressure. We've all been through this before, and my attempts to "play" for further downside in the past has always forced me to buy back my favorite stocks higher, so I'll be staying the course, especially as earnings arrive shortly.
Holdings: ZIP PINS FDX PLAY AGCO PHM UPST CXM VERI USER ZENV BMEA GMBL, cash 0%
Stocktrader
Hi stocktrader,
Last week UP 2.61%
YTD UP 2.61%
Saleem
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