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3 “Contrarian” Market Moves to Make Today

3 “Contrarian” Market Moves to Make Today

It’s time to make some big moves, Strong Hands Nation!

But not where you’d think…

See, if you follow Wall Street financial news, this may seem contrarian. If you follow us, this will make 100% total sense.

You may be hearing that you should buy oil stocks, panic about hyperinflation or invest in quick day trades…

I would say this is wrong.

And there are three better market moves you can make today to strengthen your portfolio.

All of these opportunities have one thing in common — America 2.0 potential! Get all three here:

 

This week I want to talk about three moves I believe you should be making in these markets. If you are following finance, stock markets and the investment through the eyes of the mainstream media, these moves are going to seem contrarian.

However, if you are following us and you know the way we think then all of this is going to make 100% sense. Before I begin I want to make it clear that this is opinion and not advice. Just understand that.

 

Should You Be Investing In Oil Or Batteries?

If I look at what’s been going up the last several weeks or even the last month, it’s oil, energy stocks and actually the stock market. These stocks are going up in a big way. Many people may be thinking oil prices are going to go to $100 and they should go buy a barrel full of oil stocks.

I would tell you the move to make right now is to sell oil stocks and buy into battery stocks. Batteries that go into Tesla cars — those are the stocks, in my opinion, you should buy. Let’s look at the setup first. Oil and energy prices are at five-year highs. Last time I checked, oil was at $85.

If you go to your gas station it’s nearly $3. In other words, oil prices are quite high. Oil stocks are also at highs. Remember, in 2020, for a little while, oil traded at a negative price. This is a big snap back from what happened in the COVID crash in 2020.

As you go and look at these big oil companies none of them are planning to increase their capacity. You know why? It’s because they all know something that I believe most people know and the market certainly knows because its’ acting like it in terms of the people who are in it for the long term.

Everything we do for our services from Profits Unlimited on, we are long-term oriented. They all know that carbon-based energy is going away. Even Saudi Arabia. I saw an article that says they want to be fossil fuel free by 2050. That’s just 30 years from now.

We’re talking about the country with the largest oil reserves on Earth is talking about going carbon free. This is a done deal. We are moving on from carbon-based energy. These high prices you are seeing for oil, natural gas and gasoline are going to accelerate the investment into what we call new energy.

You can check out my video from last week where I go into the new-energy complex and all the opportunities available to people and that we, across our services, are all in on. If you want to check into Profits Unlimited, this month we are going to add a battery stock that is revolutionary.

It’s been a dream of people to create this kind of a battery. If you are interested in that, my amazing colleagues Amber and Jaclyn are working on this issue and it will be out soon.

I would tell you if you are looking at the markets today, the right place to be is in batteries. This is going to be the replacement technology that really matters. Battery technology has sat still for a long time until Tesla came in. Then a lot of money was spent on lithium ion batteries.

Now there are a number of other companies that are actively going at this opportunity and making big headway. They are starting to plan to put up large amounts of capacity to build batteries and scale. It means that sooner rather than later the prices of these company’s stocks are going to get bid up.

Making a commitment to a battery plant is a long-term commitment. You are planning to put up a plant that’s going to produce batteries for years and years to come. You are going to get commitments to customers well ahead of that.

Stock market investors are going to look at that and start to discount that and anticipate where these companies are going to be in terms of revenue and sales many years out. It’s no different than Tesla. Today it has billions of dollars in sales, but its stock market capitalization anticipated where it is today.

It’s the dominant maker of electric vehicles around the world. Batteries are definitely one of the places where you should be looking. It’s going to replace and wipe out the old world of carbon-based energy.

A second place we are participating in across our services is this new paradigm that comes with new energy. You need software, data and information to optimize all the sources of energy. No longer is energy just coming from one source. For example, I have solar panels on my roof, but I also use the grid from time to time.

The grid itself — the utility company — no longer rely on a plant. They rely on solar power, wind or wave power. They have many different sources and they have to optimize it in different ways. Obviously the sun doesn’t shine all the time and the wind doesn’t blow all the time.

You have to figure out how to optimize and make efficient this new chain of energy sources. For that, you need software. We have an amazing company in Profits Unlimited that does this. They coordinate batteries from all these utilities that are putting up utility-scale batteries around the world.

However, it does need to be optimized. Sometimes you don’t need it, sometimes you do, sometime you need a lot, sometimes you need very little. Software, data and information are the key to getting this system working.

The third place I would tell you you should be focused on as money starts to go — we’re talking long-term money, which is where all the big money is made. I know people chase short-term returns but I have zero interest in that. If you are looking for that, our channel is 100% wrong for you.

The other place long-term money is going for is less well-known energy sources like hydrogen and nuclear where there are many years of research and development that are now coming to fruition in commercial development. In Profits Unlimited we are very big on this new energy theme.

Energy is critical to human life — it’s fundamental. Just think about everything we do on a day-to-day basis. Your house runs on energy, your car runs on energy, all the other aspects of our life depend on energy. There’s a reason why, for a long period of time, the energy companies were the biggest in the world.

I believe the companies we have in Profits Unlimited are going to arrive in the same place over time. It’s not going to be instant; it’s going to take some time. They will completely wipe out and replace the old energy sector of ExxonMobil and others.

That’s one of the moves I would be making right now that is contrary to a lot of what other people are writing about or talking about if you are following regular media, or perhaps even some of the folks with my current publisher, Banyan Hill. I obviously disagree with them.

I know sometimes people think I have a relationship with them. We just have the same publisher. They have their own independent views. They have theirs, I have mine.

 

Bonds Vs Dividend Stocks?

The second place I have a different view of what I believe people should be doing versus what you might be reading in the Wall Street Journal or other places is interest rates. If it were me, if I was forced to buy something income oriented, I would prefer to buy bonds over dividend stocks.

Or these dividend and stock buyback hogs. These are companies that are borrowing money to pay out dividends and buy back stock. They are generally what we call America 1.0 stocks. This is quite contrarian because I saw Jack Dorsey — CEO or Square and Twitter — talk about how hyperinflation is something that might happen in the U.S.

I give that a zero possibility. For sure, headline inflation right now is high. Interest rates for the 10-year bond, while not as high as they were pre-pandemic, are at a multi-month high. There’s once again a panic about inflation. I would tell you this panic is bogus. I believe it’s completely BS.

I spend nearly all my time focusing on these new technologies. Many of you know me for the Internet of Things, blockchain, artificial intelligence and new energy. The key to all these technologies is that they are getting cheaper by the day because they are still scaling up.

When you produce more and more of it, the per-unit cost is going to go into decline. Now this is the reverse of most of these companies that are paying out dividends. I will say one exception here is the semiconductor stocks.

These companies, if you look at their balance sheets, you will see they have skyrocketed their borrowing to buy back stock and pay dividends. They are doing this instead of reinvesting their money into innovation. Instead, they are supporting their stock at very high prices by buying into it. Then on top of that, to make things worse, they are paying high dividends.

I believe this is going to come back to punish them in a very big way. I believe that clock is ticking and beginning to tick faster and faster. The underlying basis for what I am talking about is that as prices are going up for legacy or old-world services, there is an acceleration going on into the adoption of new innovation technologies.

The high prices you are seeing for these old-world and legacy services is driving a push to adopt innovation technologies faster. This is a place where you can see rising returns for your money. The more you use them, the lower the per-unit cost is.

That’s an attractive scenario that’s going to make business owners invest in that technology. Then, people will start to naturally switch over to these products and services because they provide a greater benefit at a lower cost as a result of this innovation.

Ultimately what’s going to happen in the next one, three, five years, the demand for these legacy products is going to first slowly and then suddenly die off. It’s kind of like how you have seen Sears and all these old-world retailers go to zero. You will see that for entire sectors and industries.

With that, you will see headline inflation first fall and then plummet. Then, we will have outright deflation. In other words, a reduction in prices because the investment into these new technologies will drive prices lower and lower. That will make interest rates go down.

There’s an inverse impact with interest rates and bond prices. As interest rates go down, bond prices will go up. Then for these America 1.0 dividend and buyback hogs, I unfortunately see them going to zero. This debt on their balance sheet is going to be destructive.

I have been telling our subscribers for a long time that the destination of these companies and stocks is certain: zero. Only the speed is unknown. Many people hold onto these stocks for their dividends because they are less volatile and more stable than the stocks we invest in.

However, in my opinion, they are dynamite and I would go nowhere near them.

 

Buy Into Innovation!

The last move I would tell you to make right now, which is obvious if you follow along with the previous two, is that you want to buy into innovation. You want to buy into innovation through growth, America 2.0 and the Fourth Industrial Revolution.

The basis for this is really the previous point I made. You are going to see huge spending happen for companies that make and sell innovative technologies and then for companies that use it to increase and optimize their products, productivity and services.

That’s then going to make big-money investors, who really are underweighted if they have anything at all in these America 2.0 companies, come and buy these with their hundreds of billions and trillions of dollars. Then they will bid them higher.

If you own those stocks, those are going to be massive gains in your portfolio. For our subscribers, you are already in. There’s really nothing you need to do. Just follow along with our model portfolios in Profits Unlimited and across our services.

I am very BOP — bullish, optimistic, positive. It’s been a difficult six months of a correction, but coming out of it our stocks are going to soar. Our patience is going to be rewarded.

That’s my video for this week. Come back next week and I’ll have another one for you. Until then, this is Paul saying bye.

BONUS Move: I made the case for new energy and battery stocks in today’s video.

If you’re ready to take action and make this market move today, click here to see my extended presentation.

Regards,

Paul Mampilly

Paul Mampilly

Editor, Profits Unlimited

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