Five Bullish Market Sectors
Twitter economist Ben Rickert did the homework and put out this tweet today:
In the past 13 years. Central banks have cut interest rates 972 times. Bought $19 trillion of financial assets via QE, introduced NIRP, Yield Curve Control, TL TRO's, resulting in a near-record $16.8 trillion of negative yielding global bonds.
In other words, central banks around the world have created vast sums of cash out of thin air, or what we call money printing (Ctrl+P).
All that money has to go somewhere. Two places it is going are into equities and housing.
Here are five bull markets happening now.
Online Retail
According to eMarketer, online retail sales are expected to grow 35% this holiday season.
To back up this idea, Amazon announced it would hire 100,000 seasonal workers this year. To put this in perspective, in 2012 Amazon didn't even have 100,000 employees in total. Wayfair (NYSE: W), Walmart (NYSE: WMT), and Williams-Sonoma (NYSE: WSM) will all benefit.
COVID-19 Recreation Stocks
Harley-Davidson (NYSE: HOG) is up 20% today after it crushed earnings. EPS came in at $0.78 versus an expected $0.19 a share. This despite the fact that the new 2021 models were pushed back from the summer and will launch in 2021 - which should create the next catalyst.
This is Harley-Davidson we're talking about. This baby boomer brand has been dead for 10 years. And it blew out earnings - amazing.
COVID-19 restricts many activities, but you can still go outside and enjoy nature and the open road.
Companies that will benefit are motorcycles and RVs - Thor Industries (NYSE: THO); boats - Brunswick Corporation (NYSE: BC); camping gear - Dicks Sporting Goods (NYSE: DKS); and golf - Callaway Golf (NYSE: ELY). In the next few months, I expect ski holding company Vail Resorts (NYSE: MTN) will follow.
Bitcoin
The one great thing about Bitcoin is there are no rules against hype, pump and dumps, or bubbles. And Bitcoin loves some free money speculation.
The chart says Bitcoin is about to break out. Expect new highs by next year.
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Low mortgage rates and people fleeing the close quarters and riots of cities have pushed existing home sales to 6.54 million last month. That's a 9.54% gain.
The National Association of Realtors announced Thursday that the market is the hottest since 2006! It is also up 21% from last year.
That said, don't buy the homebuilders. Buy the home improvement, furniture, and paint companies. Bed Bath & Beyond, after five years of lower same-store sales, had a blowout quarter. The stock went from $4 to $24 since March. My readers are up a fair amount in Sherwin-Williams (NYSE: SHW) after a recommendation from my trading service Launchpad Trader.
Fintech
Financial technology firms are on a rocket ship. These are companies that are stealing business from the big banks. And most of them do it for free or at a low cost. Fintechs are providing online and mobile banking, peer-to-peer lending, person-to-person payment, financial software, and even back-end accounting for your food truck.
The legacy banks both charge money for these services and/or delay them. Why are we still waiting three days for a check to clear? Why put on a mask and go to a bank?
One company I recommended in September 2019 was PayPal (NASDAQ: PYPL), the company that owns Venmo. The stock is up 93% since then.
There are three other companies that could be a better buy than PayPal. Check them out here.
All the best,
Christian DeHaemer
Since 1995, Christian DeHaemer has specialized in frontier market opportunities. He has traveled extensively and invested in places as varied as Cuba, Mongolia, and Kenya. Chris believes the best way to make money is to get there first with the most. Christian is the founder of Bull and Bust Report and an editor at Energy and Capital. For more on Christian, see his editor's page.