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)
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Good investing,
Publisher, The Bauman Letter