Victory Over Coronavirus Day UPDATE !
Hey Subscriber,
Little technology glitch on last night's VOV Day update...the Ultra Income portfolio got jumbled==apologies. We are updating Portfolio Worksheets as I type...will forward them when completed.
The GOOD NEWS is we dodge a bullet with GLOP news pre-market open.
GLOP announced a 90% dividend cut in order to pay down more debt.
DO NOT BUY GLOP-- we got fooled by management on their move when they told us and others on call in September "no more distribution cuts."
Whew.
Action to Take: SELL Cloudflare/NET and TAKE PROFITS! We have nearly a 2X winner in NET--it has been a great run--let's not be greedy. Love Cloudflare, Love FSLY, love edge computing, love APP serving...just making a trading call here.
IF you want to own long term, I guarantee we will own this again. But FSLY has shown us that these amazing companies are priced for perfection and FSLY under $75 is the bigger opportunity to make $$$ profits at these valuations and under a technology rotation.
Love's got nothing to do with buying and selling stocks (except for cult stocks like Tesla and Apple).
Action to Take: BUY the DEEP Discount High-income energy Names & mREITS NOW (which rise in value when the 10-interest rates rise which slow mortgage refinancing)
We added OMP Oasis Midstream with its 23.33% yield secured (it was cut 73% earlier) BUY UNDER $10.50 (you must buy shares tomorrow to get the .54 quarterly dividend as the date of record is 11/13!)
USAC--under $11 still pumping out $2.10 annual dividend!!!
AM--<$7
AMZA <$16.50
ENBL<$5
REML< $4.75
PFFA < $21
DCP < $15.50
NLY HOLD
NRZ < $8.50
Time Again for USOI Under $4.50
Our old friend USOI is back in its dividend growing period of November through June.
We estimate a 20% appreciation over the next 7 months as oil consumption and prices rise with widespread consumption growth beginning with vaccination and about 40% return from dividends!
ROTATION INTO VALUE CONTINUES... the rotation into economically-sensitive value stocks at the expense of technology-driven growth stocks is historic--of course, it is--it's 2020!
That rotation was accompanied by a jump in bond yields which touched an eight-month high. Technology is the day's weakest sector as expected, while Internet stocks are weighing on the communications sector.
Industrials are the day's strongest sector. Energy stocks are up again as well. Small-cap stocks are up again today with the Russell 2000 trading in record territory.
The charts tell the story best.
Chart 1 shows the S&P 500 Value iShares (IVE) gapping sharply higher yesterday to the highest level since February. Chart 2, however, shows the S&P 500 Growth ETF (IVW) backing off from resistance along its early September peak. According to the Wall Street Journal, economically-sensitive value stocks outperformed tech-dominated growth shares yesterday by the biggest margin on record going back to 1993.
Chart 1
Chart 2
Net-net? We have built a "Time Travel 2022' portfolio over the past few months based on a return to normal business with a vaccine in leisure travel, indoor hospitality, and leisure and entertainment industries, and the leaders of each category by the end of 2021.
These portfolios include REITS as well that have been smashed to bits yet currently maintain fortress balance sheets.
The Victory Over the Virus plays have a LONG way to come back--we will assemble our Top 10 2022 Bargains and release in the upcoming Transformity Investor PRO newsletter.
Don't delay on rounding up your Ultra Income + 50% growth portfolio's --the global transformation from pandemic economies to non-pandemic economies will rebuild enormous wealth in the next 24 months along with Green/Renewable Energy based sectors and companies.
Gridlock + Green + Energy plus post-pandemic services and technology niches (plus a few SPACS) are going to make 2022 another historic year for Transformity Investing. We will NOT see another 350%+ return in 12 months for a long time. But earning 70 years of wealth in 12 months gives a little room for a return to 75% annual returns (growth plus dividends).
Cheers!