Tesla Mania? No Thanks! Give Me ‘Safe Money’ Investments Instead
As I sat down to write this piece yesterday, shares of red-hot, battery-powered car-maker Tesla (TSLA, Rated “D+”) were soaring more than $100 from their previous closing price. That was good for a gain of around 13%.
The day before? TSLA soared almost $130, or around 20%.
In fact, since its rocket ride began in October, Tesla has soared more than $630. That’s a stunning 3.5X move.
And you know what? I wouldn’t touch the stock with a ten-foot pole! And neither should you.
Wait … WHAT? How can that be? Have I lost my marbles?
Don’t I know that one bullish firm recently raised its price target on TSLA to $6,000 from an already-incredible $4,000?
And didn’t I see that billionaire Tesla investor who came on television this week to say the company could ultimately rake in $1 TRILLION in revenue? That would be more than 40 times the $24.6 billion in sales it generated in 2019.
All true. But all irrelevant. Or, at least, it is to me as a senior analyst at Weiss Ratings and editor of our Safe Money Report.
Why? Because the kinds of investments I recommend need to provide a reasonable margin of safety! They need to have proven their worth over lengthy periods of time. They need to earn rock-solid Weiss Ratings.
They also need to produce respectable dividend yields that can generate solid income in this low-rate regime. And they have to operate in resilient sectors — sectors that are appropriate for the current stage in the economic and credit cycles.
Tesla fails on all accounts. Every. Single. One.
Now, there are some investors who might say: “So, what? You’re so boring. Why shouldn’t I just mortgage the house, move my kids’ college money out of a sleepy 529 plan, and ‘put it all’ on TSLA? If it goes to $6,000, I’ll be rich as Midas!”
And to them, I’d say “Okie dokie. Your call.”
But I’ve spent almost a quarter century closely analyzing the markets. I’ve followed stocks and bonds through multiple, complete, boom-and-bust cycles. I saw how that kind of thinking blew up people’s portfolios in the dot-com mania. And I saw how it did it again in the housing mania.
So, I’d much rather stay focused on the kinds of investments with real, underlying, fundamental strength, soundness and resilience.
And it’s not like that focus has cost you anything as an investor. After all, “Safe Money” investments are LEADING this market, handily outperforming many other alternatives.
If you’re the kind of investor who sees the logic in this and wants to ignore the Tesla hype, give my Safe Money Report a try and focus on the gems I’ve found for subscribers instead.
With positions in precious metals — always a safe-haven favorite — energy stocks, defense stocks and plenty of high-yield dividend-payers, you won’t be disappointed.
You should also check out Sean Brodrick’s newest event, Gold Stock 10-Baggers for 2020, this coming Tuesday, Feb 11 at 2 p.m. Eastern.
Sean’s predicting a brand-new bull market in gold is just about to begin.
And thanks to his proprietary Gold X indicator, you’ve got a shot at seeing profits of 229%, 370% and even 1,186%.
To claim a FREE seat to this event, just click here.
And, if you’re in the Orlando, Fla. area later this week, come check out my presentations at the MoneyShow. I’ll have much more to say on these subjects there.
You can see my complete schedule of events at the Omni Resort at ChampionsGate, and register to attend for free, by clicking here.
Until next time,