We Didn't Start the Fire
Updated: Mar 3, 2022
Billy Joel's song covers a lot of ground, but clearly we've been thrust into another moment of consequence that very well could be a bleak lyrical addendum to the song; an unpredictable error in judgement could lead to unthinkable consequences. We pray and hope not. For gallows style humorists, Amazon does sell Iodine pills.
Thinking as an investor, there's little doubt that fear is in the air. Recent big selloff days could be a portent of things to come as energy costs will no doubt continue to skyrocket. For a multitude of reasons, some of which include self imposed restrictions, fuel costs could careen towards ten dollars a gallon; something that would clearly spark an economic downturn. Dividend names like XOM, DVN, WMB, KMI, DSX, ZIM should continue to work. Even if we take another leg lower, great opportunities in big time tech names will eventually be at hand, unless of course, "the fire" spreads. From a human perspective we hope for some sort of calming of rough seas. One tech option that will eventually be very appealing from my point of view is Google. (GOOGL) With a 20 to 1 stock split looming, I like the idea of selling covered calls on Google post split. The stocks provides no dividend, however their financial strength continues. It's not a proper technical buy point as of yet but it seems poised to regain that 200 moving average. Keep it on your radar. Post split its price will most likely be under 200 dollars per share.
(IBD data) Googles massive earnings increases
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