Week In Review: Earnings Swings, Financials, Gold, GRUB and SNAP
Here's how we are looking at the markets after this past week. In no particular order: As reported this week, Warren Buffett loves Bank of America and there is a high likelihood that you should too. To be fair, BAC has been a recommended position in conservative portfolios for our Turning Points Premium Service so there is some partiality at work here. Nevertheless, financials as a sector are in possession of numerous attributes that can create a virtuous cycle of epic proportions into the the end of 2019. It's a sector that is a no-brainer type of opportunity over the long-term given the way everything from the macro to the micro has lined up. If there is further bullish momentum this week, especially following the FOMC meeting, there are going to be a lot of bears throwing in the towel. The negative potential catalysts are disappearing by the day. At the end of this week, assuming the market remains pinned at or near its highs, both negative potential catalysts from the Fed and earnings will be eliminated, leaving bears wondering what they have to pin their hopes on moving forward. A come to Jesus moment awaits. Gold has a place in every investors portfolio at this moment in time. Not for the short or intermediate term, but rather for the very long-term. Global central banks are guaranteeing a positive outcome for gold over the next several years. GRUB reports this week. This is going to be widely watched report given the competitive threat GRUB has faced from names such as DoorDash and Postmates. Expecting very good things, as Zenolytics previously outlined how GRUB has nothing but upside into the second half of this year. After releasing earnings this past week it has become clear that KKR is now a growth stock trading at 10 times forward earnings with a 2% dividend yield. The company is printing money as investors are throwing capital at them in desperation for returns from a trusted source. The company grew earnings by 36% year over year. Fee generating assets under management are growing by double digit percentages on a sequential basis. After releasing earnings this past week, it has become clear that SNAP is well on its way to a full recovery of its post-IPO disaster, getting closer to Zenolytics target price of 100%...
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