What to sell in a Bear Market rally–and two sells for Monday, Omnicom and Alcoa

What to sell in a Bear Market rally–and two sells for Monday, Omnicom and Alcoa

I ended my recent post “This looks like the Bear Market rally I’ve been waiting for” on my subscription JubakAM.com site by saying “Enjoy the ride but look to sell shares of companies that look most exposed to the return of recession/high interest rates/inflation worries. That post had been up for all of 18 minutes before I got the perfectly reasonable question “Like what?” And I promised an answer so here are my preliminary thoughts on what I’d look to sell in a Bear Market rally

Lessons from Netflix for all consumer stocks

Lessons from Netflix for all consumer stocks

In this post let me take another step back to look at the one of the larger economic forces revealed by the Netflix miss. I’d argue that the Nexflix miss should put pricing power and questions of what price increases will hurt demand up near the top of your stock picking check list. Especially since the streaming service’ loss of 200,000 subscribers this quarter and the ported loss of 2 million subscribers next quarter qualifies as just the first shoe to drop.

My first “Recession Preparation” sell: Lululemon

My first “Recession Preparation” sell: Lululemon

Projections schedule a potential Recession for the second half of 2022 or 2023. Fears of that impending trend will begin to be felt in stock prices before that. The sector most likely to feel the effects of any Recession–and thus the sector most likely to first feel the anticipation of that Recession on stock prices–is what Standard & Poor’s calls Consumer Discretionary” stocks. (The Consumer Discretionary Select Sector SPDR ETF (XLY) tracks these stocks for the S&P 500 index.) In my YouTube video yesterday, I flagged three stocks in this sector to sell ahead of any potential Recession–Netflix (NFLX), Starbucks (SBUX), and Lululemon Athletica (LULU). Of these I said I would sell Lululemon first

Please watch my new YouTube video: Three Recession Stock Sells

Please watch my new YouTube video: Three Recession Stock Sells

I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My one-hundredth-and fourteenth YouTube video “Three Recession Sells” went up today.This week’s video takes a look at what I’m calling consumer discretionary companies and recommends that this kind of company should be your first sell as we head toward a Recession. These are places where consumers looking to save money in future economic downturn might cut back spending. I think Starbucks (SBUX), Lululemon (LULU), and Netflix (NFLX) are all stocks to avoid through the end of the year as we see a recession on the horizon. More coverage of this on my sites as well including 10 stocks to own during a Recession on my subscription JubakAM.com site.

Let the stimulus logrolling begin (I hope): Republicans near $1 trillion (maybe) with Democrats at $3 trillion as McConnell describes his plan on Senate floor

Let the stimulus logrolling begin (I hope): Republicans near $1 trillion (maybe) with Democrats at $3 trillion as McConnell describes his plan on Senate floor

Of course, there isn't actually a Republican bill in the Senate yet, but in a floor speech today Senate Majority Leader Mitch McConnell said “The American economy needs another shot of adrenaline.” McConnell also noted that infections are “climbing in hot spots around...