Inflation Investments are the Future?
Filed under: Commodities Bull Market, Financing, Investing, Stock Market History, Stock Market Predictions, Stock Picks
A very good article on Inflation Investments points out that hyperinflation is quite possible in the very near future. With Ben Bernanke printing as much money as possible, it is almost inevitable. If we do see inflation in the coming years, the place to be is in commodity investments. As many of you know, this site has been strongly invested in commodities for quite some time and we think the commodities bull market is only half way complete. That means we could see another NINE years of heavy commodity gains.
Where to Get Stock Picks
Where to get stock picks is extremely important if you want to outperform the market. There are several sites on the internet that offer great stock picking advice. We, at the Church of Cowherd, offer stock picks based on the economy and long term trends. We will never claim to offer the best short term stock picks as the market can be very volatile and make sharp moves either way. So when you search where to get stock picks, we hope you end up at the Church of Cowherd.
Stock Picks – March
Stock picks for the month of March will be very tough. We look to be finding support at S&P 740, but if the market breaks through this level, we could see a strong move to the downside. If that level holds, we could begin to see the beginning of a bear market rally. As stated many times on the Church of Cowherd, there is no better time to buy than when everyone is bearish and overly pessimistic. This is when fortunes are earned.
We have quite the conundrum though when making stock picks for March. Commodities and stocks tend to move in different directions, but we see possible strength in both of these investment arenas right now. If you are a long term investor and just want to put your money in something that will give you a gain over the long term, now would be a great time to invest in commoodities. If you are an intermediate to short term investor, the beginning of a cyclical bull market can be very alluring.
Some of the quickest gains are made during a cyclical bull market because the pessimism is so great and the overall fear has pushed stocks to levels that are unrealistic. With that being said, stock picks that could thrive with the possibility of a coming bull are as follows:
- LKQ Corporation (LKQX) – $13.53 - This is a used car part company that has the potential to greatly benefit from Americans cutting back on buying new vehicles. If you need a car part, go to LKQ Corporation and scrounge through their junkyard to find what you need for much cheaper than a dealership or car part store.
- Nordstrom (JWN) – $13.55 SHORT – High end retail is done for awhile in America. We are going to start buying accessories that cost much less as we are making less money and seeking better deals. If Nordstrom’s is busy, it will be from offering sales in which they recieve no gross profit from sales.
- Dollar Tree (DLTR) – $34.85 – We have been long Dollar Tree since February 24th at $34.85 a share. We will continue to stay long this retailer until unemployment turns around. We like this stock for the same reason we dislike Nordstrom. Dollar Tree offers goods for much cheaper and Americans find that very appealing in the current economy. This is one of the very few stocks in the market that has already started an uptrend. Look for it to continue if the market begins its cyclical bull.
Remember, all of our stock picks are for the intermediate to long term. We do not expect to make a quick buck on these plays. Many of them make take several months before they take off or break down based on our analysis. Please feel free to offer any feedback and stock picks of your own.
February 27 Stock Picks
We will not give new stock picks for Fridays, but we will go over what we have picked so far. We know that the economy is going to continue to struggle, so all of the long plays are economy plays. Consumers are going to continue to scale back their spending so expect retailers who sell goods and services at a very low price to succeed in this market. Any company selling a product that is over $100 is going to greatly struggle. We also believe gold will benefit from the moves by the Federal Reserve Bank. Here are the stock picks we have:
- Agnico-Eagle Mines (AEM) – $49.43
- Washington Post (WPO) – $382.25 – SHORT
- Wal Mart Stores (WMT) – $50.01
- Genentech (DNA) – $85.52
- Dollar Tree (DLTR) – $34.85
- Family Dollar Store (FDO) - $27.00
Remember, these are stock picks for the intermediate to long term. Do not expect to gain a quick return from these ideas.
February 26 Stock Picks
The stock market took a sharp dive in the last hour to lose over 1%. It is expected to see a pullback like this after a 4% gain. It looks like the market is attempting to start it’s bear market rally as predicted by the Church of Cowherd. The February 26 stock picks are as follows:
- Agnico-Eagle Mines (AEM) – $49.43 – Gold has been down over $50 an ounce in the last two days and AEM is sitting on its 20 and 50 day moving average. We expect to see a bounce to the upside in the very near future for both gold and AEM
- Washington Post (WPO) – $382.25 - The Washington Post reported disappointing earnings as expected after the bell. Google will continue to dominate ad revenue which will be the undoing of print media. Expect this stock to continue to plummet in the coming months. SHORT WPO as their revenue will continue to decline.
All of the stock picks that we offer are for the intermediate to long term. We do not suggest buying and selling in the same week. Let economics work itself out and make money on trends rather than psychological swings.
February 25th Stock Picks
The market looks to gain strength and prove that is is truly in a bear market rally. To do these, an uptrend needs to be craved out of the S&P 500 support of 740. We will see if this happens, but even if it does not, the following picks should outperform the market over the next few months.
- Wal Mart Stores (WMT) – $50.01 – We all realize that with a struggling economy, Wal Mart will benefit by offering everyday low prices. Look for this stock to move higher over the next few months as the economy continues to worsen.
- Genentech (DNA) – $85.52 – Once again, this is an economy play. Many individuals will see their health worsen due to stress and the inability to pay for essential needs. Genentech will prove to be one of the best pharmaceutical companies as an investment.
February 24th Stock Picks
Yesterday in our Stock Market Predictions column, we predicted that there will be a strong bear market rally in the near future if S&p 500 740 holds as support. With that being said, the February 24 stock picks include two consumer staples. In this economy, Americans are buying the necessities rather than the accessories. When buying those necessities, they want the cheapest price possible, so these are two strong considerations in the current economy.
- Dollar Tree (DLTR) – $34.85 – This stock is down 17% over the last month, but is expected to do well as Americans go the cheap retailers to get their needs serviced.
- Family Dollar Store (FDO) - $27.00 – Family Dollar is only down .4% over the last month while the entire market is down 10.49%. Another company that should benefit from Americans downsizing and buying cheap.
It would not be advisable to buy both of these stocks, but do your research and pick which company is better for your portfolio. Until the housing market gets better, these two retailers will benefit from the troubled economy.