What’s investing, if not the continuous weighing of risk and reward? Right now on Wall Street, there’s plenty of each. Thanks to stimulus payments and monetary policy from the Federal Reserve, money is abounding and the market is reacting. For better or for worse.
Mike Larson, senior analyst and editor of Safe Money Report, says, “There’s a lot of garbage-type names: reckless stocks, very high-risk stocks, some that don’t have any revenue — much less earnings — that are getting swept up in this, and that’s the kind of stuff that you don’t want to be owning.”
In this special four-minute video segment, Mike highlights how low, but slightly rising interest rates are driving certain stocks to the danger zone. He’s looking favorably at industries that went ignored last year.
Mike explains:
You want to be focused again on some of these sectors that have gotten very cheap, and unlike many of the over-owned, over-lugged, over-valued technology names, probably still give you the opportunity for gains.
It’s the exact opposite scenario that you had in 2020, where it was those very large, very well-known tech names that did very well, and some of the other stocks were left behind.
Wall Street is throwing a party. You can enjoy and profit ... and play along as long as the market is floating on an ocean of cheap, easy money ... but you don’t want to lose your head.
There’s a lot of companies out there that do meet the safe money standard and qualifications that I run every investment through, and that you can use in this environment to generate decent profits, with a reasonable amount of risk.
In this insightful video, Mike discusses:
• The alarming trajectory that he sees in this interest rate cycle.
• Value stocks that are rebounding.
• What on-line retail traders can expect, when trying to short the stock market versus the commodities market.
• Questions that you, as readers, have asked him!
And more!
The information in this short segment couldn’t be timelier. I suggest you watch it now.
Happy investing!
Jessica Borg
Financial Anchor
Safe Money Report
