Another day, another two big wins for my Portfolio Accelerator.
Yesterday, I closed out an 83.3% win on an electric vehicle manufacturer and another 77.8% gain on an “at-home” stock.*
I am loving this market. And I plan to be very ACTIVE – especially on the news out of Washington on Monday.
We are likely going to get a very BIG stimulus package in 2021 to help boost the economy.
That doesn’t mean that one should blindly start buying up stocks.
In the coming week, we could start to see a pullback in certain sectors like Electric Vehicles – which have been rallying at levels I haven’t seen since the Dot Com years.
Let’s dive into the latest developments in the market and take a look at the stocks I’ve just added to my Watch List.
On Tuesday, the Dow Futures popped 300 points on news that the Trump Administration has started the transition process. General Services Administration head Emily Murphy told President-Elect Joe Biden that federal resources will be used to aid the transition.
Today’s pop higher complements yesterday’s gains. On Monday, Joe Biden announced that former Federal Reserve Chair Janet Yellen will become the Secretary of the Treasury Department.
Yellen was hawkish at one point on interest rates in recent years. But she has made it clear that she favors low rates, more stimulus, and aggressive moves to get the U.S. economy back on track. The market sees her as a non-partisan voice given her track record at the Federal Reserve.
The market also knows her track record.
If the last decade has taught us anything, it’s that it operates on the latest dose of stimulus and Fed purchasing. We aren’t turning off the money hose.
Still, it will be interesting to see how she handles the position – which will place a greater emphasis on fiscal policy (taxes, subsidies, etc.) instead of monetary policy (the mechanisms of the central bank). Overall, I think that Yellen will be positive for the market. Her mandate will center on getting the economy going.
That said, she will likely not turn her attention to creating any form of a regulatory regime for banks or hiking taxes as many people had feared. Yellen had served one term at the head of the central banks. President Trump replaced her with Jerome Powell.
MY STOCK WATCH LIST
CHGG: Chegg is a polarizing company on Wall Street. Shares have doubled this year, and price targets are all over the place. It comes down to what you think will happen in the future of education in the United States. The Chegg bears think that the College System will endure. I disagree. I think that the future of college is digital. Even the Wall Street Journal hijacked my “End of College as We Know It” language. The upside here is about $95 to $100 per share.
PACW: The news of Janet Yellen at Treasury is good news for banks. They’re not out of the woods right now given the state of the economy, but we might be looking at Helicopter Money in the first quarter to provide support. PacWest Bancorp is a Silicon Valley player. So, while all of the tech stocks are going through the roof, one of their most important banks remains about 55% lower than where it was in January.
CIEN: Ciena Corporation is a 5G stock that isn’t very exposed to the Chinese economy. Strong fundamentals. Bullish news sentiment. And overall – Bullish sentiment from Wall Street. The stock is trading at a discount compared to industry rivals like Corning, which trades at a higher revenue multiple and has a much larger debt load. I think that when CIEN guidance turns the corner, this could be a terrific stock for 2021. It will just require a little patience.
Other Names to Watch: COR, BA, RVP, TSCO, AVLR, IQ, COUP