Before you let yourself get carried away by the coronavirus headlines and panicky Wall Street traders…
The “smart money” — the calm money — isn’t looking for umbrellas and raincoats for shelter in the current financial storm.
Those investors are shopping for surfboards … so they can ride the coming wave of global interest rate cuts to even bigger profits.
According to Bloomberg, bond traders around the world are now pricing in a total of 2% worth of interest rate cuts from seven major central banks by the end of this year.
They’re betting the U.S. Federal Reserve chops interest rates twice, while its counterparts in Australia, New Zealand, Canada and the U.K. cut at least once.
While traders only give fifty-fifty odds that the Bank of Japan and the European Central Bank will cut, I think we’ll see both join the easy-money parade before the end of next month.
So I urge you to look past the current stampede of lambs running to the slaughter.
Instead, think about where we’ll be a year from now.
These synchronized interest rate cuts will be helping our portfolios grow in value long after the coronavirus is just a memory.
And there’s one stock in particular that should be on your shopping list right now.
Today’s Coronavirus Scare Is Tomorrow’s Opportunity
Health authorities suspect China’s open-air slaughter markets — where pretty much anything with two wings or four legs is for sale — played a starring role in jump-starting the epidemic.
That recently prompted the Chinese government to change its tolerant policies toward these markets.
But people, of course, still have a natural craving for meat.
That makes Beyond Meat Inc. (Nasdaq: BYND) an interesting anti-coronavirus play.
Beyond Meat has been mum on its specific plans in the country.
But Executive Chairman Seth Goldman told retailers at the start of this year that “we want to see production grow in China.” That’s in addition to ongoing efforts to ramp up manufacturing in Europe.
My point is, today’s coronavirus-inspired sell-off is tomorrow’s opportunity to make big long-term profits.
Rapid Growth Ahead for Beyond Meat
Beyond Meat issues fourth-quarter and 2019 numbers on Thursday.
Analysts expect an annual loss of $0.10 a share. But they also foresee profits rising to over $1 a share by 2022, and hitting nearly $3 a share by 2024.
Yes, the stock is pointing lower at the moment because of the coronavirus scare. But I’d be looking to buy shares now at a discount.
BYND Drops to $113 — a Great Buying Opportunity
It’s true that the stock is a bit expensive on a valuation basis. But I doubt BYND will get much cheaper from here.
That’s because there just aren’t that many companies with this kind of rapid growth ahead.
But I have my Total Wealth Insider readers in the few — besides Beyond Meat — I see moving higher from here.
Best of Good Buys,
Editor, Total Wealth Insider