November 22, 2022

 

Tuesday morning

November 22, 2022

 

Hello everyone,

The markets are in holiday mode as it is Thanksgiving Week here in the U.S.

For those of you who love to cruise, why not join John on the Queen Mary II for his Seminar at Sea Strategy Update. The ship departs July 7, 2023 from New York and arrives at Southampton on July 14.  The Cunard cruise number is M319. The Black Friday sales are on, so you are likely to get a nice discount on regular prices.   Customers are responsible for booking their own cabins and return flights from England. Dinner is black tie every night, so you had better visit Saks before you board the ship to make sure you have suitable attire.  What a nice highlight in 2023 to look forward to.

A cruise highlight aside, what will be the highlights in the market?  Will there be any?  Let’s be clear, the markets are being tossed about by interest rates and inflation. Until the Fed starts to reduce interest rates or hints strongly about this, the markets will be under pressure, and at best, go sideways. Don’t worry, that scenario is great for option spread trading. Time decay here works in your favour, so the markets can muddle along all they like, and you will still make money. 

So, maybe not much pain in 2023, but also not much growth. 

It will depend on whether we have a soft or hard landing recession.  Every analyst has a different idea.  John believes the recession will be shallow and short. Whatever happens, it’s the ability to trade the market that is in front of you that counts.  So, hone those skills.

As I was saying the other day, it doesn’t hurt to tilt your portfolio toward defensive sectors when we are facing headwinds of unknown velocity. Goldman Sachs, for instance, recommends consumer staples and healthcare (which I spoke of as well). These tend to outperform amid slowing growth and rising real rates.  Goldman also recommends telecommunication services as well as consumer durables and apparel. 

John has just sent out an excellent piece on Silver to his Concierge clients.  It is a detailed report showing which sectors have a practical application for the metal and where the demand for it will be in the future. The principal use is in electronics. Think electric vehicles, for example.  If you believe that electric vehicles will be the car of the future, then there is a very good case for owning silver right there. In the last few years, Silver has been battered and bruised, but a low-interest rate environment will see it rally again. It’s not time to invest yet.  Ways to play the new rally include buying silver coins, buying ETFs of which the most liquid is the iShares Silver Trust (SLV), which trades options. You could also consider the Van Eck Vectors Silver Miners ETF (GDX).  Or there is the Wheaton Precious Metals (WPH). You could spread your risk and buy a small parcel of each.

That’s the news for today.

Hope the rest of the week is amazing for all of you.

Take care.

Cheers,

Jacque

"A life spent making mistakes is not only more honourable, but more useful than a life spent doing nothing." - George Bernard Shaw