This is a little weird... Two of the best market calls I've made recently have involved suggesting the purchase of mediocre companies and the sale of some of the best companies on the planet. My first call, near the end of 2020, was to own oil producers that were looking at massive upside that few investors were heeding. To be clear, I love the value of Chevron (NYSE: CVX) - which Chief Income Strategist Marc Lichtenfeld recommends in The Oxford Income Letter - but I don't love oil businesses writ large. (To learn more about which stocks are must-have "Buys," check out Marc's best FREE dividend stock recommendations. Access Marc's Ultimate Dividend Package... FOR FREE!) In fact, I've learned the hard way that oil companies are often mediocre at best. Oil producers sell a volatile, unpredictable commodity. They are price-takers, not price-makers, and they are extremely capital-intensive. They're immensely different from the subject of my other prediction... My second call was to avoid Big Tech stocks due to their valuations, which were exorbitant for most of 2021. But the thing is, Big Tech companies grow quickly and generate boatloads of cash flow. They're powerhouse businesses. They just cost too much at the time. Today, like I said, both of my calls have worked out extremely well. But get this... The tables have flipped, and Big Tech stocks are drawing my eye with their crushed prices and churning cash flow... Are you thinking what I'm thinking? | 
Post a Comment
Post a Comment