Public Policy vs. the Markets: Zombie Companies and the Next Opportunities
Public policy has been the main driver of markets this year, and that’s going to continue to next year.
But the Federal Reserve can do no more to rescue growth stocks and “zombie companies” sacked with mountains of debt. From here on out, raw market reality takes over.
In today’s installment of Your Money Matters, Ted and Clint Lee tell you what reality means for your portfolio … and where you’ll find the next big profits.
A Changing of the Guard
Even while corporate earnings cratered, the stock market rallied after the drop in March. Benchmarks are near record highs.
But the leading stocks benefited from policies that have run out of steam.
The good news for your portfolio is that there are plenty of undervalued stocks that stand to benefit from the policies likely after November. Many will become the new stock market leaders.
In this week’s video, you’ll also discover:
- A Democratic sweep could mean higher interest rates. See the evidence that this could hit high-priced growth stocks the hardest. (2:20-5:29)
- These stocks will see the biggest gains if the consensus policy outlook for next year proves correct. (9:03-11:22)
- The Fed enabled zombie companies to continue their debt-fueled march through the pandemic crisis, and held up their stock prices as a result. Hear why this effect is about to wear off. (5:29-9:03)
To watch the video, click here or click on the image below:
As a side note: We don’t provide transcripts for our YouTube videos. Many of you have asked. However, if you would like to see subtitles, you do have that option. Click the “cc” button in the bottom-right corner of the video. The transcription won’t be perfect, but it should help.
Publisher, The Bauman Letter