If we do get another 5% correction in stocks in August, it is best to have your “BUY” list on the table and ready to go.
That way you don’t have to waste time looking up ticker symbols and reading that pile of research reports gathering dust on your desk.
I’ll give you mine.
Let me get this right. Stocks screamed upward since January because:
1) The Federal Reserve isn’t going to raise interest rates anymore in 2017.
2) The price of oil is holding steady in the mid $40’s, less than half the three-year ago levels.
3) Commodities are still holding close to multi-year lows.
4) The US dollar finally took a rest, boosting foreign earnings.
5) Corporations are continuing to buy back their own stock like there is no tomorrow.
6) Investors are yanking money from abroad and pouring it into the US, because it is the only place they can obtain a positive return, especially in stocks.
7) Washington has spent the entire new administration’s time chasing its own tail and accomplishing nothing
May I point out the blatantly obvious right here?
These are all reasons for 90% of US companies that consume energy to increase earnings and to boost their share prices.
Only the 7% that derive revenues from ripping oil and commodities out of the ground should get hurt here.
Of course, the market doesn’t know that. It was anything but rational this month. There was only one direction, and that was UP.
The Dow and (SPY) are now, once again, at all time highs.
What is even more stunning is that these increases in prices are occurring in the face of US macro economic numbers that are mediocre, at best.
Only housing, which accounts for about one third of the US economy, has been on fire. Home prices are still rising everywhere, in some places quite dramatically so.
Even more incredible is that the stock market reached new highs in the face of a geopolitical backdrop that was nothing less than horrendous, with a major terrorist attack in France, and the ongoing civil war in Syria.
If nothing else, corporate buybacks, sticking close to record levels, should re-accelerate here, which could reach $1 trillion in 2017. Some 4.7% of the outstanding share float of corporations is disappearing every year!
I am, therefore, going to give you a list of ten of MY TEN FAVORITE STOCKS to buy during the next dip, highlighting the sectors that will lead us into a pre/post election year end rally.
The themes here are home builders, consumer discretionary, biotech, commodities, big technology, and international.
And I’ll give you some mouth watering yield plays among the REIT’s and master limited partnerships.
Even the entire interest sensitive sector is on the table as a value play.
Watch out, because when I sense that the market has opened a window, the Trade Alerts are going to be coming hot and heavy.
You have been forewarned!
Read ’em and weep with joy!
10 Stocks to Buy at the Bottom
Lennar Homes (LEN) $48.65
Home Depot (HD) $134.78
Facebook (FB) $165
IShares NASDAQ Biotech Index (IBB) $323
NVIDIA (NDVA) – $165
Gilead Sciences (GILD) $73
Alerian MLP ETF (AMLP) $12 with a 6.84% yield
Goldman Sachs (GS) $221
Wisdom Tree Japan Hedged Equity (DXJ) $52
Freeport McMoran (FCX) $14
Want to know what John Thomas REALLY thinks?
Click here for a free global strategy webinar giving John’s 2017 outlook on stocks, bonds, foreign exchange, commodities, energy, precious metals, and real estate, and YOU TOO can make 38% a year!