Boring Is Bullish:
Look at This Shipping ETF's Rally |
Money & Markets Daily,
Not every stock you buy is exciting.
They can’t all be the latest meme stock or a chance to target profits in AI's ongoing mega trend.
If you look at your portfolio right now, I’ll bet one word best describes most of your investments … "boring."
By boring, I mean companies that don’t have five pages of news when you search their ticker on Google.
They aren’t exciting or generate a ton of buzz … they just are.
And that’s OK.
There’s nothing wrong with steady-Eddie stocks that you don’t read about on a daily basis.
Some of the most “boring” stocks out there can yield the biggest returns. Here are some examples:
Nothing flashy or fancy. These are just plain old boring stocks beating the market by huge margins.
Today, I’ll show you a “boring” sector of the market that’s been on an impressive rise of late.
 | JPMorgan, Blackstone and Goldman Sachs are quietly pouring billions into this hot sector before it goes mainstream. Details here. |
Over the Ocean and Through the Pipeline
Commodities trading is an interesting game.
You are buying, selling, transporting, storing and processing physical raw goods, which range from wheat and corn to oil and natural gas.
Let's focus on transporting goods.
Getting goods from one point to another is big business. Americans would struggle without billions of dollars in packaged medicines we receive from Germany.
Mexico couldn't thrive without massive refined oil imports from the U.S.
Then, there is the $210 billion in automobiles the U.S. imported from around the world last year alone!
These products have to get from Point A to Point B somehow, and one of the most popular ways is to ship by sea.
In 2023, the U.S. imported and exported 914 million tons of goods through various ocean ports. By 2050, that number is expected to grow to 1.2 billion tons.
And shipping to and from the U.S. has been a boon for shipping companies this year:
The SonicShares Global Shipping ETF (NYSE: BOAT) has risen 22% since January 1. The exchange-traded fund (ETF) invests in companies that operate oil and gas transportation services.
For reference, the S&P 500 has gone up 9.8% during the same time, meaning global shipping is outperforming the broader market by more than 2-to-1.
Amid all the talk about artificial intelligence, Big Tech, biopharmaceuticals and e-commerce, “boring” shipping stocks are blowing the doors off the market.
Get Into “Boring” Shipping ETFs and Stocks
I bring up “boring” shipping stocks because three stocks in the BOAT ETF just landed on Chief Investment Strategist Adam O’Dell’s weekly hotlist.
All three rate 97 or higher on his Green Zone Power Ratings system and met other criteria to be considered strong buy candidates.
When I saw that, I knew a trend must be in the offing, and it was something I had to share with you.
I’d be remiss if I talked about shipping stocks without mentioning that Adam spotted this trend last year and recommended a strong stock in the sector to his Green Zone Fortunes subscribers.
Since then, the stock has gone up 68%! Adam is confident it has more room to run.
And shipping isn’t the only trend Adam has spotted early…
He just identified an overlooked development in the AI space and the one stock he believes will lead that market from here.
If you want to see how to access Adam's hotlist, his shipping stock that's still below its buy-up-to price and his latest AI recommendation in Green Zone Fortunes, click here.
Until next time…
Safe trading,
Matt Clark, CMSA®
Chief Research Analyst, Money & Markets Daily
Consumers Have Never Believed the Fed
Gallup recently found that just 36% of U.S. adults have a “great deal” or “fair amount” of confidence in Federal Reserve Chair Jerome Powell. His rating is the lowest Gallup has measured for any Fed chair since its polling began in 2001. Only one chair, Alan Greenspan, has polled above 50%.
This data demonstrates that consumers don't believe the Fed.
The Federal Reserve Bank of New York's chart below comes from its Survey of Consumer Expectations. It shows year-ahead inflation expectations. Since the survey began in 2013, consumers have never expected the Fed to reach its target of 2% inflation.
Economist Milton Friedman argued that expectations are a primary driver of inflation. With such low expectations for the performance of the Fed, a robust economic recovery seems unlikely.
— Mike Carr, Chief Market Technician, Money & Markets
(Click here to view larger image.)
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