Profitable Investing Tips
3 Reasons for Infrastructure Investments
The Biden infrastructure and jobs proposal has been launched. Getting the $2 Trillion proposal through Congress in one piece may be difficult but should not be impossible as every member of Congress would see benefits of spending, jobs, and infrastructure improvements in their districts and states. The sorry state of US infrastructure is touted as the reason we need such a plan and so much spending. But there are really three reasons for infrastructure investments which are high unemployment, dead end jobs, and infrastructure in need of fixing.
Where Will Biden Infrastructure Money Go?
President Biden just introduced his proposal for a $2 Trillion plan to rebuild and modernize American infrastructure and to create American jobs. If this proposal passes Congress in its proposed form, it will provide many investment opportunities along with being the biggest domestic US investment since the Johnson years.
Top Infrastructure Investment Opportunities
The US economy is going to grow nicely this year as it comes back from the Covid-19 shutdown. Investments in the recovery will continue to do well in the coming years if they are focused on American infrastructure. What are the top infrastructure investment opportunities for 2021? You need to think about what materials and technologies will be used to repair and advance infrastructure. And, then you need to look for the companies best positioned to profit from a broad range of projects.
How Long Will the Economic Boom Last?
In our article about investments for the Post-Covid Economic Recovery, we noted that economists expect the US economy to grow by 7% by the end of 2021. But, there are good reasons to believe that the US economic boom will continue through the entire decade of the 2020s and beyond. First of all the Democrats have learned their lesson from the Obama years and will not shrink back from spending whatever it takes to drive down employment, bring manufacturing back to the USA, beef up US infrastructure, and protect America’s position in the global economic hierarchy. And, there are more reasons as we will explain.
Should You Invest in Shorted Stocks?
GameStop and other meme stocks have started to surge again. Most folks thought that the retail investment frenzy was over. Over a month ago we asked the question, Should You Invest in GameStop? Our conclusion was that when you can successfully time such investments both in getting in and getting out, they can be quite profitable. But, over the long haul, the reason that the majority of stocks are being shorted is that they are overpriced and will eventually fall. Much to our surprise, GameStop stock is up again!
Stimulus Money and Stock Market Investments
The Democrats are barreling past Republican opposition in the U.S. Senate to pass Biden’s stimulus bill. The $1.9 Trillion relief package will include funds to fight Covid-19, money to states to support vital work, and $1,400 each to Americans to make less than $50,000 a year. There will be some money for folks making more but it will taper off and be gone for those making $100,000 a year. Our interest at this point is the relationship between stimulus money and stock market investments.
Smith & Wesson Investment Risks
The business section of The New York Times has an article entitled, “The Most Important Gun Lawsuit You’ve Never Heard Of.” On the surface this has to do with advertising fraud by Smith & Wesson but it could be a lot more. American arms manufacturers have been protected by the Second Amendment to the Constitution of the United States as well as other federal legislation from too much scrutiny of their internal affairs and communications.
Treasury Yield and Growth Stocks
Last week we wrote about investments for the post-Covid economic recovery. In the same vein, we have been thinking about how interest rates are going up and investors are becoming wary of growth stocks. Treasury yield and growth stocks bear watching. Low interest rates have driven money into the stock market. Low interest rates have kept a lot of “zombie companies” afloat. And, many investors have simply followed the leader by investing in FFANG stocks like Apple as its shares go up faster than its earnings.
Investments for the Post-Covid Economic Recovery
The US economy is going to grow impressively in 2021. How long will the recovery last? What are some investments for the post-Covid economic recovery?
Carbon Sequestration Investments
Exxon Mobil is going to make $3 billion in carbon sequestration investments over the next five years. Exxon Mobil has gotten a lot of criticism for