Newsletter Update March 19th, 2021
We have now moved into an interesting and choppy investing environment. Previously you could be a blindfolded monkey throwing darts at a stock dartboard and be a winner (no monkeys were harmed in this discussion). Now you actually get to earn your keep. Or you can simply invest in mutual funds, ETF, or index funds and let the “experts” do a little of the work for you. There are a lot of moving pieces, plates in the air at this time.
Fluctuating interest rates
Inflation fears
A recovering economy
Pandemic fears
A new administration
When you look at most stock charts now you will see a new, “choppy” trend. Before it was higher and higher. Now there is plenty of volatility, both higher and lower.
So what do you do? As always, if you are going to invest in a stock, company, sector, or country, you should put in a certain amount of homework. That being said, what are the trends? What is the outlook for the economy moving forward? Which sectors will see the most gains in the next 12 months? Sure I have my thoughts. A wonderful way to play your hunches is to be familiar with bull and bear (inverse) ETF funds. And the leveraged ETF funds, 1X, 2X and 3X.
Personally, I am sticking with what I know best, Cannabis. It helps that the Cannabis industry is healthy, young, and a durable staple in even the most difficult of times like tobacco, pharmaceuticals, and alcohol.
My goal is to identify the MJ stocks that are undervalued, underappreciated. Last summer just about every MJ stone you turned over was good for 50 percent appreciation within 6 months. Now that the MJ landscape has been scoured over for hidden gems, it is much more difficult to identify companies that are solid, undervalued, and have a rosy future.
DISCLAIMER
John Mueller (The Charles Report) is not a licensed financial, income tax advisor, stockbroker, or licensed real estate agent (almost!). All investment/financial opinions expressed by John Mueller are from my personal research and 35 years of investing experience and are intended as educational material only. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur. Purchase and sell real estate and stocks at your own risk.
