Investments to Be Thankful For
In the wake of and the start of the holiday season, today we’re checking in with six of Weiss Ratingssenior analysts to discuss investments they feel thankful for.
Our experts identify sectors experiencing explosive growth, as well as stock thriving in this “money flood” environment … even with interest rates remaining low and inflation at its highest in 31 years.
Jessica Borg (narration): Enjoy thisThanksgiving weekend and give thanks to a market on the rise.
There’s a corner of the market you may want to feast on … plant-based proteins as meat substitutes.
Jon Markman: Meat substitutes are really an important part of the food industry right now because it’s the fastest growing piece.
JB (narration): Senior analyst Jon Markman says Beyond Meat (Nasdaq: BYND) is taking a big bite — out of the global $20.7 billion meat substitutes market.
By 2030, the market could jump to $85 billion.
JB: Why are these considered tech companies? I think it’s interesting that they’re in the food services industry but can be viewed as tech companies.
JM: A hamburger version of Beyond Meat feels like a hamburger, it’s juicy like a hamburger, it tastes like a hamburger. How do they do that? It’s all through technology.
JB (narration): Another industry heating up is so-called “energy metals.”
Sean Brodrick says to look at uranium.
Sean Brodrick: Recently, it’s been on a rocket ride.
JB (narration): In September, spot uranium oxide prices hit a nine-year high, nearing $51 a pound. It’s currently trading at around $46 a pound.
Why has it spiked?
SB: People will point to lots of things including the long-term supply-and-demand squeeze. Uranium has been so cheap for so long it hasn’t been worth mining it.
So, the above-ground stockpiles have been shrinking down, down, down.
Only the largest miners are in operation because they have economies of scale. Everybody else has been driven out of business.
JB (narration): Uranium is used for nuclear power plants and is widely considered less of a pollution concern than coal.
In fact, it’s now viewed as one of the fuels of the future.
Sean’s newsletter, Wealth Megatrends, has a holding in North Shore Global Uranium Mining ETF (NYSE: URNM).
Their position is up more than 50%.
Another investment on the rise is Tractor Supply Company (Nasdaq: TSCO), a big-box retailer.
Tony Sagami: It’s a great stock. You know, ironically, a lot of companies saw their sales nose-dive during the early parts of the pandemic, but not Tractor Supply. Their sales actually went up and they’ve continued to stay elevated ever since.
JB (narration): Tony Sagami, editor of Disruptors and Dominators, is also targeting hard assets and soft assets, boosted by inflation.
TS: Hard assets are things that you extract. Soft assets are things that you grow. But look at all these assets: oil, gasoline, corn, copper, sugar, coffee, silver, natural gas, you name it.
These commodities are shooting up in price and that should get your attention.
JB (narration): In this climate, Mike Larson, editor of Safe Money Report, goes for stable income-generating stocks.
Mike Larson: I’ve been a big fan of “safe money” sectors — things like utilities and some real estate investment trusts, or specialized REITs.
Many of these companies are very attractive from a business standpoint, and if you look at performance over the last few months, what’s been outperforming? It’s been those safe money sectors.
JB (narration): He says it’s also a good time for alternative investment strategies.
The goal of his service, Weekend Windfalls, is to generate up $1,000 each week, by selling options.
ML: Not buying options — where you’re paying premium for the chance to profit from a stock going up, or a stock going down — but selling options, where you’re basically selling someone else the right to buy or sell a stock, that gives you some money in premium.
It’s like being the insurance company versus the insurance premium payer. The money you take in as premiums, boosts the yield your portfolio spins off.
JB (narration): From alternative strategies to an alternative form of finance.
Cryptocurrencies are all the rage.
Bitcoin (BTC) just reached an all-time high of nearly $69,000.
Weiss Crypto Portfolio editor Juan Villaverde isn’t surprised by the growing adoption and mainstream momentum.
Juan Villaverde: This snowball effect of crypto being a superior monetary system, superior technology for money and finance, is getting more and more attention.
It allows us to do things we couldn’t do before, like have self-custody of your assets.
JB (narration): Bitcoin — increasingly viewed as a store of value — isn’t the only crypto re-defining the world of finance … so is Ethereum (ETH).
Upgrades to the blockchain will make transactions cheaper and faster.
JV: Bitcoin is what some people call the collateral layer of the crypto world.
Ether, the Ethereum native asset, is the fuel that powers the decentralized crypto economy.
An economy needs credit markets, trading markets, it needs prediction markets, it needs art.
Ethereum enables all of that.
JB (narration): It’s made the world of NFTs possible.
Non-fungible tokens — from art to video games — are selling for millions on the blockchain, using smart contracts.
NFT artist and collector Joel Kruger says they should appeal to investors across the board.
Joel Kruger: What I say to people is that if you have that global macro appreciation for financial markets — you look at commodities, you look at equities, you look at currencies, you look at bonds. You’re drawn to these markets also because of the volatility and the opportunity around that.
Obviously, without that, it becomes less interesting to a lot of people. This is no different, right? This is a new market, a new asset class, effectively an emerging market.
JB (narration): A market now offering digital art something only traditional art used to have — the quality of rarity.
JK: Now, the playing field is level.
And I’d actually say the playing field is more than level because with a digital asset, it can go viral so everybody can see it, right-click and copy it. And yet, only a certain amount of people that are designated with this NFT — this smart contract — have this rarity with the supply and demand built into it.
JB (narration): So, as youkick off this holiday season, keep these investments in mind.
Happy Thanksgiving and Happy Investing.
The Weiss Ratings Team