Category

COVID-19 Stock Market Crash

Trading Strategies

These Cash-Rich Companies Give You a Safety Net Today - and Wealth for Years to Come

By , Executive Editor, Money Morning - • Print | Email

We get scads of questions from you folks here at Money Morning – each and every day.

We get them through our terrific customer-service team members, via Facebook and Twitter, posted as comments on stories, and funneled in through our newsletter gurus (of which I'm one).

But I'll let you all in on a behind-the-scenes secret.

A huge swath of these queries are some variation of the question: "What stocks should I be looking at right now?"

Now, I've been doing this for a very long time.

So I understand that your question is actually much more "nuanced" – much more sophisticated – than that. It's actually three savvy questions wrapped up into one.

And what you're really saying to me – to all of us – is more akin to this…

"Look, Bill, I'm taking the 'long view' here – because I know that's the right way to go. But I want to buy the 'right' stocks."

And by "right stocks," you know you want to buy shares of companies that:

  • Have good growth prospects – especially in the post-pandemic world – meaning I'll be able to buy them on the cheap now, and be confident I'll keep making money for years to come.
  • Have a business "story" I can understand and explain, since that'll let me keep track of how my investment is doing for that time period.
  • Are really "low-risk stocks," meaning there's a "margin of safety" if the stock market and/or the U.S. economy takes it on the chin.

The perfect place to start when building wealth, the perfect foundation, is low-risk stocks. Like companies stuffed with cash, which I'm showing you today… Full Story

The perfect place to start when building wealth, the perfect foundation, is low-risk stocks. Like companies stuffed with cash, which I'm showing you today...

Options

The Best Options Trade on Robinhood Preys on Wall Street's Optimism

By , Money Morning - • Print | Email

Most investors know that trading options can be an easy, low risk way to build wealth.

And now with free-trading platforms like Robinhood, the costs are no longer a factor.

But as anyone who's dabbled in options trading can tell you, finding the moneymaking trades isn't quite as easy.

That's where we come in.

Our trading experts are revealing another trade that could make you quick cash as stocks hit their second bottom...

Oil

What to Do After the Greatest Collapse in Any Commodity Ever

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks - • Print | Email

What happened to oil yesterday was the greatest collapse I've ever seen in any commodity, ever.

And barring some unforeseen apocalypse, we'll never see it again.

This just doesn't happen in the commodities market. Every once in a while in a stock, sure, you'll get a case of fraud or someone goes bankrupt. The stock will go to $0 over time.

In the commodities world, there's a bottom for prices. This doesn't happen. Until it did.

Oil futures traded at a negative price for the first time in history.

We had the perfect storm for an oil collapse.

Demand is down. No one is traveling, and global manufacturing has plummeted.

There's a price war. Saudi Arabia drove production way up, and Russia joined them. Now there's estimates of up to 30 million barrels a day of extra oil being produced. Even with a production cut, there will be 20 million barrels a day being produced with nowhere to go.

All that oil needs to be stored somewhere, and world is running out of places to put it.

Futures contracts are tied to physical delivery of a commodity. Everyone dumped them because they have nowhere to put that oil.

No one wants oil right now.

And that's why this oil story is so troubling – it's very much a demand story, not an oversupply story…

What to Do When No One Wants Oil

An oil trading firm in Singapore, Hin Leong, kicked off oil's trouble. Hin Leong buys and sells large super tankers filled with physical oil to distribute through Asia.

Sunday night, it told the world it had a non-disclosed $800 million loss from trading oil. To cover the loss, it had to liquidate oil futures – a fire sale. It had to sell… Full Story

Sunday night, it told the world it had a non-disclosed $800 million loss from trading oil. To cover the loss, it had to liquidate oil futures - a fire sale. It had to sell...

Trading Strategies

Don't Let Food Shortage Fears Keep You from These Profits

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks - • Print | Email

Given the bare shelves in local stores, recent headlines about meat processing plant closures have only elevated concerns that we could run out of food in parts of the country.

It's true some grocery stores have been struggling with restocking, but this isn't because there's not enough food being made.

It's because supply chains are having trouble adjusting to the major shifts we've seen since early March.

Even Smithfield Foods, the world's largest pork processor, recently closing down its Sioux Falls, South Dakota meat processing plant indefinitely, doesn't mean our meat supply will disappear.

The truth is, our food supply remains safe and plentiful.

The truth is our food supply remains safe and plentiful. And you can make some nice profits on the overblown panic...

Facebook

A Double-Your-Money Tech Titan with Low Risk and Big Upside

By , Executive Editor, Money Morning - • Print | Email

That's a line from "Contrarian Investing," the 1998 book I co-authored with a New York money manager. And it means that against-the-crowd investors like me like to find stocks that have been beaten down from their highs.

Most investors don't think that way. They know of the mantra "Buy low and sell high" – but when it comes time to actually buy a beaten-down stock, emotion overcomes intellect, and they run to the sidelines. They "see" the move as too risky to make.

I'm here to tell you that they're wrong.

As my co-author and I found out in the process of writing our book, beaten-down stocks – as a group – are actually lower-risk/higher-upside investments than their high-flying alternatives.

And in the face of the coronavirus-pandemic market, low-risk investments are the ones you should be looking for.

That's what we're going to deliver today – in part.

We're bringing you a low-risk stock – with a bonus. This is a stock that:

  • Is trading at a discount – down nearly a quarter from its peak.
  • Has a hefty "margin of safety" – with a ton of cash and no debt.
  • Has a big upside – the stock should easily double by 2025, a great return for a stock with lower downside risk.

Let's run through each of these – and you'll see why I'm so revved up about a stock that – on its face – seems so obvious.

Yeah, a "hidden in plain sight" wealth play that's so obvious most folks will ignore it… Full Story

Yeah, a "hidden in plain sight" wealth play that's so obvious most folks will ignore it... Full Story

Trading Strategies

Get Paid Today to Buy These Top Stocks at Bargain Prices

By , America's No. 1 Pattern Trader, Money Morning • @powerproftrades - • Print | Email

Over the past two months, "too big to fail" stocks like Facebook, Apple, and Google have received some pretty bad haircuts.

But just like my accidental seventh-grade bowl cut, it will grow back. What sounds like bad news now won't last for the long term. In fact, this blue-chip stock pummel spells huge opportunity.

You see, these companies are among the most successful companies in the world. They are at the heart of American commerce, and although they've been beaten up badly, they will recover to normal levels in due time.

But you don't have to wait until then to profit. You can get paid big today to buy these stocks at bargain prices – lower than where they sit now – by selling put options… Full Story

But you don't have to wait until then to profit. You can get paid big today to buy these stocks at bargain prices - lower than where they sit now - by selling put options...

Options

This Options Strategy Is a Win-Win for Today's Turbulent Markets

By , Money Morning - • Print | Email

The market seems to make less and less sense everyday.

Stocks have rallied by 25% over the last three weeks despite unemployment claims smashing through historic records each week.

It's an unprecedented rally for the economic numbers we're seeing.

It's hard to know whether to sit on the sidelines, waiting for than next leg down or jump in as the market makes a sharp recovery.

It could go either way.

But what if you could profit from either of these scenarios with one trade?

It's not as crazy as it sounds.

We have a strategy than can do just that...

Technology

Why This Top Tech Leader Should Be No. 1 on Everyone's Watch List

By , Defense + Tech Specialist, Money Morning • @Robinson_STI - • Print | Email

With this choppy, news-driven market still driving wild daily swings, it's still not time to go "all in." But adding to or starting positions in strong stocks is a good idea.

We've talked about how to get back in at the right pace – buying in increments, using dollar-cost averaging to lower your cost basis.

As far as what to get into – you can't go wrong with a strong tech leader.

These are the stocks you want to own for years to come. Buying in a little off the bottom won't matter in a few years, when your money has doubled or tripled – or better.

To get that tech leader buy list ready, it means giving each one a thorough checkup to make sure that prior to the correction, it had a great track record of earnings gains.

I've recently given you recommendations on a money-doubling tech stock and three high-dividend tech stocks. Today, I want to reveal a tech leader that I feel should be on everyone's watch list. It's a former laggard that become one of the market's top leaders. Along the way, it amassed a market value of roughly $1.4 trillion.

But when it became one of the first in the sector to warn of a sales decline brought on by the coronavirus and exposure to China, the stock got hammered.

Here's the thing – it's firing on all cylinders, and it gives investors multiple shots on goal. I'm talking about everything from defense and cannabis to the cloud and computing… Full Story

Here's the thing - it's firing on all cylinders, and it gives investors multiple shots on goal. I'm talking about everything from defense and cannabis to the cloud and computing...

Options

The Best Options Trade on Robinhood This Week

By , Money Morning - • Print | Email

Retail sales just had their biggest monthly decline ever in March, but some retail stocks have soared despite store closures, plummeting sales, and little consumer confidence.

One of those thing has to give, and we don't see sales surging anytime soon.

We're going to capture that downside with an options trade. It's not as simple as a put option either; it's a trade that will maximize your upside while limiting your cost.

And it's an options trade you can easily execute on Robinhood...

Earnings

Why Earnings Per Share Estimates Can't Be Trusted Right Now

By , Associate Editor, Money Morning • @DavidGZeiler - • Print | Email

Earnings per share estimates are badly out of whack right now, which is skewing valuation metrics investors use to judge whether stocks are properly valued.

The market volatility from the coronavirus pandemic has created a lot of uncertainty that has caused a delay in analyst updates of their EPS estimates.

That has stocks looking cheaper than they really are.

And the gap is shockingly huge...