The Trend is your Friend until the End
Updated: Aug 1, 2022
Comparison Stock Chart of 8 Ticker Symbols (click chart to enlarge)
BULLS: Above is a 6 month chart that compares the progress of some of the ticker symbols I have been commenting on since early this year. The green line on the bottom represents VGT the Vanguard Info and Technology ETF. There is no comparison. WMB, XOM, ZIM, DSX, GOGL, SBLK, FLMN have not only outpaced Vanguard's ETF in the last six months but those stocks have also delivered substantial dividends on top of price appreciation. The "safe" approach of buying an ETF or Mutual Fund provides diversification with a plethora of stocks, but in this case it is "Diworsification." Investing in too many assets in a basket of stocks works when the entire market is trending, however that is NOT currently the case, and in either case you can do much better. Our seven stock portfolio is concentrated in the world of Oil, Gas, and Shipping. For example, if you had invested 200K in the above seven companies your investment would have appreciated 45K and added 10K in dividends over a four or five month time period. Obviously buying the correct stocks is one thing, but the key to profiting is knowing when to exit the trade, when to hedge the position, and when to do nothing; that takes experience, rules-based trading, and a solid understanding of technical analysis. So in the case of an issue such as the current Covid lock-down in China and its impact on oil consumption and issues regarding the shipping industry, the news impact will be projected via price-charts. Following the news story is sometimes not as important as following any trend break on a companies' stock chart. That is the case because institutions are often the first to enter and exit positions. Those position changes will leave substantial clues on a daily chart.
BALLERS: I do love sports so I thought it would be interesting to throw out a few sports related tickers and see how they have fared over the last six months. I don't necessarily like any of these now, but I do track a lot of stuff. Now, if you had bought into Liberty media Formula One FWONA back in 2013 you would have tripled your money. Here's how some of these companies have fared since October of 2021.
DKNG: Draftkings has gotten pummeled. Minus 70% since last October.
EDR: Endeavor Group Holdings; UFC and other TV sports. Minus 24% since last October.
MANU: Manchester United; Pro Soccer. Minus 30% since October.
BATRK: Liberty Media, an investment in the Atlanta Braves. MINUS 30% since October.
FWONA: Formula 1 Group added 73 million fans and popular Netflix Show. PLUS 30%
WWE: Media/Entertainment Company engaged in live event wrestling. PLUS 21%
REITS: Real-estate Investment Trusts have done well the last three years. They generate terrific dividends and offer solid stability in this jumpy news driven environment. WPC, WP Carey Inc has been a solid performer. The company owns and manages 1304 commercial properties leased to domestic and international companies; it has a market capitalization of 15.94 Billion dollars. Speaking of commercial properties and specifically warehouses our video this week showcases the type of stuff that goes on inside some of these facilities. If you are not familiar, it sort of looks like a scene out of a science fiction movie. Something as boring sounding as a warehouse is a storehouse of modern AI and robotics.
Bulls and Ballers and Hilltop Media Productions are not investment advisors or brokers. Please trade at your own risk and follow proper risk management. This blog is intended for educational purposes and like-minded traders.
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