The V-Shaped Recovery Propelling America 2.0 Stocks
It’s like alphabet soup for describing this recovery.
Financial gurus and economists are talking about “W-shaped,” “U-shaped” and even “L-shaped” recoveries. But I’m calling “V.”
V for victory!
Right now, we’ve touched bottom in the market. It’s ready to take off like a rocket with the America 2.0 momentum fueling stocks to new highs.
But you don’t have to wait to invest in the America 2.0 bull market.
Right now, our stocks are heating up thanks to merging mega trends like the Internet of Things and artificial intelligence.
And in today’s Market Talk, we’ll tell you the best way to corner the market’s “V-recovery” by taking advantage of America 2.0 now:
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Market Talk April 20, 2020
Retail sales were released last Wednesday. There was a telling positive statistic within the numbers. While the majority of U.S. consumers are staying at home weathering the pandemic, non-store retail sales, also known as online retail sales, saw a jump.
In all, March non-store retail sales gained 9.7% year-over-year, 8.5% quarter-over-quarter and 3.1% month-over-month.
We’re not just seeing an increase in sales in your typical online product purchases, but new burgeoning sales growth in online food shopping to curbside pickup to home delivery.
Before the virus, online grocery shopping sales were projected to reach $59.5 billion by 2023, per Statista data, and as much as $143 billion by 2025, per Food Marketing Institute and Nielsen. Due to the pandemic, these forecasts could see a significant boost. Consumers are finding themselves shopping online for food now more than ever.
They’re becoming more and more comfortable with the entire process. This America 2.0-esque ETF says it all. This ETF is long bullish on online retail sales and short bearish on the traditional brick-and-mortar stores. The ETF is called ProShares Long Online/Short Stores (CLIX).
Look at this comparative returns chart. Its total return is positive year-to-date 28.5%, while the Dow, Nasdaq and S&P are under water.
On the economic front, an effort to protect as many American jobs as possible is in the works. The Treasury just announced it will commit companies to defer paying tariffs on a plethora of goods for 90 days. The goal for this tariff payment delay is to help U.S. businesses severely affected by the pandemic to free up as much cash as possible.
Speaking of cash, Congress is near a bipartisan funding agreement totaling as much as $500 billion. This new tranche of funding will be geared toward infusing the small business aid program and providing money for much needed virus testing and hospital help.
Editing Genomes: Science-Fiction Becomes Science-Fact
Now for my innovation story of the week. This is for those who like to eat fruit. Get ready for CRISPR berries. Per LiveScience, CRISPR technology is “a simple yet powerful tool for editing genomes.” Taking this high-tech editing to the next level where food is concerned, agricultural and biotech companies Pairwise and Plant Sciences are working together.
They are going to make gene-edited blackberries and raspberries. These berries will be gene edited for faster growing, optimum nutrition and longer shelf life.
Now for my America 2.0 housing update. HousingWire is reporting that despite virus fears and pessimism, homebuyers are still shopping and mortgage lenders are still originating loans. This resilience helps underpin our America 2.0 housing forecast that there is a housing shortage and still cooped up demand, especially from the millennial generation looking for their first home.
Some #BOP Perspective On The Market
As you have been noting, while the media is projecting nonstop gloom all the time, there are so many beautiful green shoots and things going on across our incredible country.
There are so many signs of optimism and positivity and bullishness. People will say, “But the stock market is down today.”
Yes, it’s true. However, there is actually a positive lining to that. The price of oil is going to be at its lowest level in 20 years or something like that. When we come out of our various cocoons we’ve been in, gas will be cheap. That’s a huge boost to people because that’s a huge amount of money people spend.
As we come out of this, there’s been a lot of debate about the shape of the recovery. There’s been a lot of internal debate with Banyan Hill. A very good-natured debate about a W recovery, an L recovery — the whole alphabet is available.
We ourselves are favoring the V recovery. We believe this is the reason why the stock market bottomed out somewhere in the third week of March and has just been going up.
Here’s the case for it. We believe what’s going on today is largely related to oil.
As we come out of lockdown, we have to rebuild globally, because this has been a global event.
That means businesses will be at max capacity of utilization. That means very high GDP. That means very high sales and earnings. That takes care of the businesses. Being at home, we are consuming things ourselves. We will continue to buy once we are active and actually consume more.
And that’s not all.
Over the last 20 years, businesses have prioritized capital efficiency and said there’s no need to keep inventory. That means very few businesses had any inventory going into this. You can bet that coming out of this, at every level of the distribution chain, everybody is going to keep something.
That means even more demand. That means we are going to have an astonishing, record-breaking recovery that I believe will blow people’s minds.
The Market is a Leading Indicator
Because we have been cooped up and completely taken by coverage of the virus and crisis, people are not thinking about what is going to happen. Instead, they are focused on what has happened.
We say this all the time: Markets are forward looking, they price in the future. We can look at everything going on from the recovery in China in car sales and what is going on at the ports in Shanghai. There is an incredible recovery underway and I believe is going to happen.
One of the ways to take advantage of this is to be in America 2.0 stocks that you saw on Friday are going up. One phenomenal service we have that takes advantage of this particular situation is our Rapid Profit Trader service.
We have closed out winning trade after winning trade, week after week. This has been an incredible market recovery. We have been able to take advantage of our understanding of this V recovery. I believe we have had 5 winning trades in a row in this environment.
We’re doing about one trade per week, so about 52 per year. Our goal is to try and get at least one profitable trade every week.
And as always, we are still bullish, optimistic and positive. #BOP
Editor, Profits Unlimited
P.S. Which stocks have the most potential to benefit from this V-recovery? America 2.0 stocks. You see, I believe we’re going to see the Dow soar to 100,000 and real estate double (see the proof here). And those at the forefront of this economic upgrade will reap massive financial rewards. Citizens from every edge of our great nation — from farmers to doctors — will have the chance to profit. Watch this video now to see the best move you can make to be a profit-taking 2020 investor.
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.