The InvestorPlace offices and customer service department will be closed this Thursday and Friday. I will be back in touch with your next Market 360 article on Saturday, November 26. I hope you have a safe and happy Thanksgiving!
The market is in holiday mode, which means there’s no trading volume since many traders are packing up early to get a head start on the holiday weekend. So, I would take any volatility we experience on Wednesday or Friday (remember, the stock market is open until 1 p.m. on Friday) with a grain of salt.
Now, while some traders may have called it a day already, that doesn’t mean that you shouldn’t continue to fine-tune your portfolio ahead of the end of the year. The reality is there’s a major leadership change currently underway, as the top end of the S&P 500 is faltering due to a strong U.S. dollar pinching profits at most multinational companies.
There’s also been net selling in some big flagship stocks. As you may recall from this third-quarter earnings season, the Googles, the Amazons, the Metas, and even the Microsofts continued to provide lower guidance. So, we’re going to see those stocks come under persistent selling pressure. This is why it’s no surprise that they continue to hold poor grades in my Portfolio Grader.
Now, they’re not the only stocks that have fallen in rank in my Portfolio Grader. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health over the weekend, I decided to revise my Portfolio Grader recommendations for 77 big blue chips.
You can get a quick peak at the first 10 of the stocks that were downgraded from a Hold (C-rating) to a Sell (D-rating). Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly so your portfolio is well positioned to profit as new stocks take the reins. For the full list of 77 stocks – including their Quantitative and Fundamental Grades – click here.
|COF||Capital One Financial Corp||D|
|DDOG||Datadog Inc Class A||D|
|GFL||GFL Environmental Inc||D|
|IFF||International Flavors & Fragrances Inc.||D|
|INVH||Invitation Homes, Inc.||D|
|LYV||Live Nation Entertainment, Inc.||D|
If you’re wondering who the next big leaders will be, the answer is easy: energy stocks.
As we discussed last week, the world is in the midst of a potential energy crisis. Russia helped trigger the global energy crisis when it invaded Ukraine, and the Biden administration made the crisis worse with its own “war on energy.”
Couple this with the fact that OPEC+ aims to curtail crude oil production by two million barrels per day, and it’s no surprise that energy prices remain elevated. While crude oil prices did break back below $80 per barrel this week, given the aforementioned issues I expect crude oil prices to rise back to $120 per barrel in the spring when worldwide demand naturally rises.
I explained in further detail in last Friday’s Growth Investor Monthly Issue for December why I am so bullish on energy, but let me say now that we are in the early innings of an incredible rally in energy stocks that should last for at least the next couple of years. (Click here to sign up for Growth Investor and read my latest Monthly Issue now.)
To make sure you’re ready to benefit from the huge upside potential in energy, I encourage you to join me at Growth Investor today. I just released five new energy buys on Friday – three refineries and two oil and gas companies – that are poised for explosive growth in the coming months. I also unveiled my Top Stocks lists, which are also dominated by energy stocks. The fact of the matter is oil and natural gas companies will boast the strongest earnings and sales growth for the next several quarters – and positive results should dropkick and drive these stocks higher.
P.S. Too many people are living in fear about having enough to pay basic living expenses, and too many retirees worry that their savings won’t last – all thanks to inflation. As a former federal banking regulator, I can say with 100% certainty, this trend will only worsen over the coming decade.
Here’s the good news: I believe I have information that can help you in a dramatic way, beginning immediately. This will allow you to generate huge amounts of real, hold-in-your-hand cash that you can spend on anything you please. I will reveal it all at my One Percent Event, scheduled for November 30, at 12 p.m. Eastern time. If you feel like you could use an extra $25,000 – $100,000 this year, you’ll want to hear what I have to say.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: