Latest Stock Buy or Sell?
Today, Liz Young, Head of investment strategy at SoFi and Jim Lebenthal commented about whether CLF-N, MRO-N, MRO-N are stocks to buy or sell.
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COMMENT
The time from now to the Fed announcement of March 15 will be the most dramatic in the market perhaps all year. Bad news is high inflation and the yield has flattened into "a bear flattener" meaning fear in the market that we might make a mistake. Good news: St. Louis Fed president Bullard already freaked us out, so we're pricing in the worst, hawkish situation. So, we might be surprised to the upside if the Fed does (on March 15) less than what Bullard said.
Unknown
$0.000
Unknown
SELL
He just took profits here. It's up 250% since the bottom of the recession, higher than XLE or S&P. It's time to move on--this is a cyclical stock, which means it will go down at some point, so he pulled the trigger to buy other names (CLF).
integrated oils
SELL
He just took profits here. It's up 250% since the bottom of the recession, higher than XLE or S&P. It's time to move on--this is a cyclical stock, which means it will go down at some point, so he pulled the trigger to buy other names (CLF).
integrated oils
BUY
He just sold Marathon Oil to buy this. This company is on fire, shares low, so it's time to buy. Interest rate scares (like now) open opportunities to buy beaten stocks like this.
steel
COMMENT
He doesn't see 7 interest rate hikes this year; Goldman Sachs does as they announced today in response to the St. Louis Fed's Bullard hawkish comments. The Fed's Jay Powell is a man of his word and seems to do things at a measured pace. Powell announces what he will do and he always follows through. He himself expects at least 4 hikes this year.
Unknown
COMMENT
The market is already pricing in a 50-basis point hike on March 15, so the Fed has the option to do that or not. If not (and they hike 25 points instead), then they should communicate that appropriately. She doesn't think they should hike 50 points and to decide by basing it on data. Watch volatility in order to find opportunity in individual names.
Unknown
BUY
In addition to rising rates, she also likes financials that have asset managers or investment arms or broker dealers. The more volatility we're seeing, those who trade stocks bonds traders make money on that flow, and so they will do better and get more trading volumes. Also, trading platforms (that make money on the trading of securities) will do well in the next cycle.
banks
