V-Bottom: 3 Trades for America 2.0’s Grand Opening
From our America 2.0 headquarters, we’re seeing an amazing scenario play out.
We believe we’ve hit the “V-bottom” in the market and our stocks are ready to pounce higher than ever this month.
America is ready to reopen for business.
And this is the best opportunity to buy into the greatest recovery in history.
Check out today’s IanCast for this massive America 2.0 update that Paul joined so we could tell you all the ways you can profit from this grand reopening in April.
3 Most Profitable Trades for April
- Shipping — This is one of the most cyclical industries in the world. And as America reopens its doors to get supplies moving, there’s a huge opportunity to buy into this bottleneck.
- Tesla — Despite lockdowns, Tesla still managed to increase sales! There are years and years of growth ahead for Tesla. And TSLA $1,000 seems too easy now, especially since most people aren’t watching one area of the business that will take the whole electric vehicle industry to the next level.
- Bitcoin — We’re fast approaching the third-ever halving next month. And it’s following the same pattern as the last time this happened when the price of bitcoin jumped from $200 to $20,000!
Reopening The American Economy
President Trump has given guidelines for how to reopen the economy. A number of states that never needed to go into full lockdown will probably come right out of it.
We’re seeing some of the other hot spot countries in Europe already starting to let workers go back. Reopening is being discussed sooner than was anticipated.
And, for context, we are seeing far fewer cases than was predicted. Initially, even with social distancing and lock down, medical models expected millions more cases.
It’s safe to say, something may have gone wrong with the models. Death tolls were predicted to reach about 2.2 million, even after social distancing took effect. Analysts were confident about that number.
That number is down to 60,000 which likely means something has gone pretty wrong here.
As recently as last week, experts were saying that the number could be anywhere between 140,000 to 200,000.
The Market Has Been A Great Indicator
Interestingly, the market has been a much better forecaster than the models for the actual intensity of this crisis and how this was going to unfold.
The market bottomed out on March 23 and then has moved up. The Nasdaq 100 is now positive for the year.
After one of the fastest drops of all time the market came right back. A lot of stocks are up back near their all-time or 52-week highs.
Stocks like AMD are just underneath the all-time high.
There’s been calls for the next Great Depression and another 2008. They are still out there. There are still people expecting this crisis to unfold the way it was modeled a month ago when there is no sign in any country.
There were countries that didn’t do a lockdown or anything and they are not seeing that many negative effects. There’s no discernible higher increases in deaths in those countries.
For example, Sweden never implemented a lockdown and their fatality rate is significantly lower. They went for something called herd immunity. They restricted people to groups of 50 but they largely went about their lives. Having stayed at home for a month straight, I definitely see the benefits of pursuing a non-panicked approach.
It’s completely reasonable that the markets are now pricing in a snapback, which is what we told folks. It’s a solid V recovery.
However, I’m sure in time a post analysis will be done as to what was done right and what was done wrong and whether going with the very worst-case scenario was the right thing.
America 2.0 Surges On and On
Semiconductors got crushed, housing got crushed, industrials got crushed. They were all down 50% or more from the high. The market overall was 30-35%, but these stocks were down way more.
I think some housing stocks fell 80% in three weeks. They were pricing in another Great Depression or 2008.
That’s not what this is turning out to be.
So now they are snapping back up. We have made a few trades in our options services that have made money from housing, industrials and semiconductors.
It’s a great way to make really quick money in trades right now.
Retail sales wre at 91% where they were last year. MarketWatch said we would be closer to negative 8.7%. But we were no where close.
That’s even considering a bunch of businesses were shut down. So there were fewer places to spend money, but still more than 91% of money was spent.
People are still spending money, but how they spend money has changed. That’s the key to take away from that.
Telemedicine saw a massive boost and has become one of the biggest winners from this.
Millions of people are getting doctor’s appointments or checkups over the phone. It’s convenient in a lot of ways and it’s one of the things being boosted the most from this.
The Moment We Snapback One Industry Will Soar
When we come back from this lockdown, we’re actually going to increase our consumption.
This is the underpinnings of the V bottom. Production is going to ramp up. Capacity utilization, which came in at 65% to 80% at max, is going to go to 100% around the world.
And shipping is going to be affected.
Actual ships going across the ocean delivering all kinds of necessities, metals, coal, food, everything and in bulk.
This is an industry that has faced a worst-case scenario due to countries being shut down and warehouses being shut down.
They can’t store it because no one is working there. Fewer people are working at shipping ports and there’s a huge bottleneck in shipping.
That’s starting to dematerialize. People are going back to work, countries are opening back up, ports are opening back up. Shipping is going to really pick back up because inventories are down.
There are fewer ships, so less supply while demand picks up.
We always talk about scarcity being one of the main drivers of price. A lot of companies have scrapped their ships so there are fewer going around. We found companies that have not done as much of that.
They have some of the biggest ships in the world, they have the biggest fleets. They are going to be the ones in demand and their stocks have fallen 90% or more from their highs.
There’s so much room for growth here. This is a unique setup for a trade and a unique trade in general.
You never hear much about shipping stocks, but this is the best opportunity we’ve seen in a long time to get in on these.
We could make an extraordinary amount of money in a quick period of time.
We’re not quite there with issuing this shipping trade. If you want to get in on it, sign up for Bold Profits Daily.
Where is Tesla In This Market
Telsa has the most advanced batteries, self-driving technology and they are the fast growing EV company.
They got into China and selling a lot of cars in China. They are actually doing better than ever in China. We don’t expect them to take much of a hit from this at all.
Tesla stock is back over $700 a share. It’s almost up to new highs. $1,000 this year was our original prediction. That seems too easy now after it was below $200 less than a year ago. Their business is booming. They are doing really well.
Tesla is coming out with the Model Y this year. The Cybertruck is next year and eventually Tesla Semi.
We are still bullish on Tesla.
As we come back, demand for things is going to rocket up. $1,000 for Tesla and the $4000 as a three or five year target is, I believe, achievable. I believe it’s going to unfold.
Bitcoin Halving Is Fast Approaching
When we first started talking about this, it was supposed to happen at the end of May. The Bitcoin Hlaving could be as soon as May 3rd at this point.
The miners are seeing that the reward for solving the puzzle for Bitcoin is being halved and they are starting to accelerate mining Bitcoin.
Bitcoin is also being hoarded as we speak.
The number of addresses with more than 1000 Bitcoin is at a two-year high. It’s doing exactly what it did before the last Halving and before the price went from $200 to $20,0000.
The supply is not only going to be reduced by the Halving, but also the supply is going down because people are hoarding it. I think it’s more than 1,800 addresses with more than 1,000 Bitcoin each.
People are hoarding Bitcoin right now and driving the supply down. Grayscale is a big Bitcoin investment company that has a lot of funds in crypto.
Most miners run a low margin operation. They need to sell their Bitcoin as soon as they mine it. There’s been a ready market for it if $388 million has been sucked in by Grayscale alone.
People will prefer to be in Bitcoin over any national, paper fiat currency. The current crisis has proved that.
Aphria reported their sales have grown 100% year-over-year.
Meanwhile, their stock is at all-time lows. It’s gotten beaten ways down. The company is valued at an extremely low level considering they doubled their growth in sales in the past year.
These pot stocks we’ve been talking about, some of them have had to temper their growth a bit because they were getting ahead of themselves.
Cannabis companies were thinking growth at all costs to begin with, but found out quickly the expense of doing that was too high for the amount they were able to sell.
Aphria is one of the ones that didn’t do that. They were slow and steady throughout the whole thing. That’s turned out to payoff, but their price has still gotten beat way down.
Overall, the marijuana industry is doing amazing, especially in the U.S. We said before that more states are going to legalize it once they see how much other states are bringing in in tax revenue.
California and Colorado have brought in billions of dollars in tax revenue just between those two states alone.
There’s a lot of money to be made by investors and also state governments in this sector. That’s going to help sales down the road and it’s going to help companies open as more states legalize.
The U.S. is a great market for this.
Aphria is one of the first dominoes to fall in this earnings season where people are going to realize this is not as bad as the stocks are factoring in, which is that these companies are going to go bankrupt. That’s not a practical case to make considering what’s happening with their growth.
ETFMG Alternative Harvest ETF (NYSEArca: MJ) has not made a new low recently.
Like Ian said last week, he is 100% positive MJ has bottomed for good. I am going to keep sticking by that.
And as always, we are Bullish, Optimistic and Positive. #BOP
Editor, Rebound Profit Trader