This Oversold Commodity Is Finally Trending Higher

The commodity market moves to the beat of its own drum, usually reflecting specific supply and demand dynamics. A number of commodities have seen either a supply shock or rising demand in recent years. Those tend to be good for prices. Sometimes, however, commodities fall out of favor. For instance, declining demand for EVs has led to a big drop in lithium prices. Lithium is a key component for rechargeable battery technologies, and EVs are a big chunk of that demand. However, ...
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The Best Investment Offense May Lay in this Defense Stock

With rising geopolitical tensions, investors have been pushing defensive names higher. That includes gold, which has hit new all-time highs. Oil has had some small spikes higher, but nothing major yet. One big winner from this rising trend is defense contractors. Military spending is likely to increase, both domestically and abroad, and major U.S. contractors will likely reap the largest benefits, especially those companies that also help supply American allies. In the defense space, aerospace contractor Lockheed Martin (LMT) could see further ...
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For Steady Returns, Invest With Companies That Benefit From Network Effects

Some companies make their profits because they benefit from a network effect. Simply put, the more users there are on a network, the more valuable that network is. Companies that advertise to that network or support that network benefit from large or growing networks. Investors who buy companies that can benefit from the network effect when they’re trading lower can earn above-average returns over time thanks to this powerful effect. One example of a network is the network of smartphones. Companies that ...
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Buy the Overreaction In this Streaming Giant

Streaming stocks have gone in and out of favor with the market over the past few years. Today, Wall Street analysts have conditioned investors to focus on metrics like total subscriber count. The past year has seen the major streaming platforms find ways to crack down on password sharing. And that’s created more account users. However, that’s not always the best way to maximize earnings. Despite beating on subscriber count and earnings, Netflix (NFLX) saw shares drop off. Part of the reason ...
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Buy This Financial Market Winner Amid Market Pullbacks

With markets now decisively off their most recent highs, uncertainty is rising in markets. We don’t know how long or how deep a market pullback will go. Typically, in the absence of a major crisis, the pullbacks aren’t too bad. That can give investors an opportunity to buy great companies at more reasonable prices. With earnings season underway, investors can also buy a company after reporting a fresh update on their operations. One market winner here could be asset manager Blackstone (BX) ...
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Use Market Pullbacks to Buy Quality at a Reasonable Price

After its 10th longest winning streak in history, the stock market has finally pulled back. The S&P 500 sank to the 50-day moving average, a sign that the uptrend may be over. However, the market often has small pullbacks of this nature. These pullbacks cause investors to unwind leveraged positions, take profits, and look for new buying opportunities. Pullbacks are healthy, and typically happen a few times per year. With the recent pullback occurring at the start of earnings season, there may ...
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Buy the Earnings, Not the Uncertainty

Markets hate uncertainty. An increase in uncertainty is a nearly guaranteed way to ensure that a company’s shares decline. Big uncertainties about the economy or geopolitical events can rattle the markets. The reverse is also true. Investors pay up for certainty. That’s a premium that investors can avoid by buying great companies when they’re still contending with uncertainty. One way to avoid uncertainty is to look at facts of a company that are certain, starting with its earnings. In particular, the trend ...
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“Higher For Longer” Interest Rates Mean Choose Carefully

It’s always a stock picker’s market. Today, with the market slowing down after a massive rally, that’s more important than ever. And the latest earnings season shows that big banks can be profitable when interest rates rise, but there can be downsides too. That’s why it’s crucial that investors carefully look for winners that can succeed with today’s high interest rates. And that they’re structured to fare well when interest rates do start to decline later in the year. While interest rates ...
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