The NEW Gameplan and Playbook for Gridlock 2021
Hey Subscriber
Very rarely in the stock market, you get a few days in a row that tells you an unambiguous story that gives us a PERFECT market strategy going into the next 6-12 months.
Well, we got that perfect stock-picking story on Monday but especially Tuesday and today Wednesday.
First off, considering the polling disaster in 2016, how is it that "the smartest guys in the room" decided to follow the SAME pollsters and bet $billions on a Biden & Senate "Blue Wave" sweep by buying up:
1) Solar and Wind power stocks
2) Heavy infrastructure building materials
3) Constructions services and rental companies
while at the same time SELLING big tech and healthcare stocks (assuming that a Blue Wave would crackdown on Medicare and Medicare Advantage plans profitability when in fact Biden's plan is to open Medicare Advantage plans to 60+ years olds)?
Instead, we got what we expected by ignoring the pollsters--a GOP Senate, Democrat House, and a slim victory for Biden.
In other words, we just got political GRIDLOCK for the next two years and that is GREAT for our favorite secular growth sectors and high unit economics business model stocks.
Our Official Macroeconomic Forecast 2021: Low and Slow:
1) zero real interest rates (bad for banks good for borrowers and home builders)
2) slow 2%-ish GDP growth (great for 3-5 year secular 25%+ growth stocks)
3) low inflation (bad for banks and commodity companies but good for the FED's ability to stay with quantitative easing/putting a 24/7 bid under corporate and Federal debt)
4) lower dollar (helps exports and good for energy prices),
5) lower trade tensions (good for US exporters and agriculture).
What's guaranteed higher? With nearly 100,000 new Covid-19 cases per DAY coming into winter which will continue to kill slowly recovering services and travel/hospitality industries.
But since nearly 50% of Americans care more about access to their favorite bar, sporting event, and food joint than the risk to their health from death or long term negative effects of COVID-19, we can now rest assured that Uncle Joe sits down with the McConnel GOP Senate and knocks out a CARES ACT 3.0 to help financially bridge the 60 million American households living in poverty or working.
For investors and corporate America, gridlock means a slowly recovering real economy (not back to near full 2019 GDP till mid-2022)
1) No big corporate or personal tax hikes (on income and capital gains)
2) Less regulation
3) NO BREAK-UPS of Mega-Tech Leaders for antitrust
4) MORE CASH to repurchase stock
In short, it is now safe to pursue full bore transformational secular growth sectors and stocks.
And this starts with the members of the QQQ and QQQJ . The QQQ is weighted heaviest to the FAANGM stocks and should outperform as those stocks are rerated based on the points I just made.
Action to Take: BUY the TQQQ 3X Leveraged ETF under $150 Target $200 2021 (for All-Access Members we are working up call and put option sales and buys--will release in the next 24 hours)
We are updating everything and the entire team is assembling our 2021 Playbook for our old and new Secular Transformational growth plays.
NOTE to SuperSPAC PRO Trader Subscribers: We are officially launching SuperSPAC PRO Trader on November 16 and the Discord Trading Room for SuperSPAC PRO Trader on Nov. 18.
PS: Here is our SuperSPAC SPAC Playbook Just Published! Click Here!