Well… don’t say I didn’t tell you so… because I did tell you so, and had you listened, you’d be making a ton of money right now.
What am I talking about?
The Infrastructure Bill.
Last week, U.S. President Joe Biden announced that he and a bipartisan group of senators had reached a $1 trillion infrastructure spending deal. The stock market reacted by sending cyclical stocks higher and tech stocks lower, on the idea that more government spending would risk prolonging currently red-hot inflation readings.
I told you in these very issues that this knee-jerk reaction was flat-out wrong.
Specifically, I told you that all the spending in the infrastructure bill would be allocated into very specific niches of the economy – like electric vehicles, solar, and hydrogen – and that it would therefore have a narrow impact on the economy and not boost inflation. At the same time, I said that the increased spending in those specific niches would simply accelerate demand for EVs, solar, and hydrogen.
So, my advice to you was simple: Buy the dip in EV stocks. Buy the dip in solar stocks. Buy the dip in hydrogen stocks. Fade the rally in cyclicals.
Well… look at what happened yesterday.
Cyclical stocks plunged. Tech stocks rallied. Leading the way were, of course, EV stocks (+2%), solar stocks (+5%), and hydrogen stocks (+2%).
Amazing, isn’t it?
The stock market had a wrong, knee-jerk reaction to the Infrastructure Bill, and is now “fixing” itself to have the right reaction.
Had you listened to me last week, you would’ve made big money yesterday.
OK… but that’s water under the bridge… so what happens next?
The same thing that happened yesterday. Over the next few months, optimism surrounding the Infrastructure Bill – coupled with other discrete catalysts – will continue to propel EV stocks, solar stocks, and hydrogen stocks higher.
The reality is that these three industries represent the future of global transportation and energy production. The market got too excited about these stocks in early 2021. Share prices corrected lower in February, March, and April. But the underlying fundamentals supporting these businesses remained robust. So, what you have now is a very attractive set-up of strong fundamentals converging on discounted valuations.
You just need that one catalyst to “wake up” clean energy stocks, and spark an enormous rally in these names back to all-time highs…
The Infrastructure Bill is that one catalyst.
And, when paired with the facts that the semiconductor chip shortage is abating, financing rates for cars and solar panel installations are dropping, and bond yields are dropping and providing support for a growth stock rebound – well, you have a cocktail of bullish catalysts to kickstart a multi-month breakout in EV stocks, solar stocks, and hydrogen stocks.
My top picks for the space?
For EVs, I really like NIO (NYSE:NIO), as that company is the leading EV maker in the world’s largest auto market. That’s a great set-up. Lucid Motors (NYSE:CCIV) also catches my eye, because I think they have the tech, talent, and resources to pound-for-pound rival Tesla. Canoo (NASDAQ:GOEV) is a sleeper pick here with a ton of potential, too.
In solar, SolarEdge (NASDAQ:SEDG) is my top pick. They are technologically the most important company in the solar panel installation process, and make the crucial inverter/optimizer technology that makes solar panels work at their best. The solar revolution of the 2020s will not happen unless SolarEdge facilitates it.
And, in hydrogen, the top pick is Plug Power (NASDAQ:PLUG) – the world’s largest and leading hydrogen company that not only has the industry’s best hydrogen fuel cell technology, the most production capacity, and the widest network of partnerships, but also has $5 billion on the balance shoot to accelerate accretive growth investments in the coming quarters and years.
Between those 5 stocks, you have 5 of the best plays on Biden’s new infrastructure bill – all 5 of which double as great short-term trades and long-term investments.
You know what else all 5 of these top-notch stocks have in common?
They’re all companies I’ve covered in my free eletter, Hypergrowth Investing. These stocks are, indeed, the companies actively changing the world and helping create a better tomorrow.
Of course, as they do that, many of these stocks have the potential to score early investors massive gains.
NIO, Lucid Motors, Canoo, SolarEdge, Plug Power… all of these have the potential to do that.
But they are just five stocks in daily eletter that builds on the decisions my team makes in our premium newsletters, which you can find out more about in Hypergrowth Investing. What’s more, by joining today you’ll be given access to my research report, 11 Electric Vehicle Stocks for 2021.
To gain access to this free eletter and special report, click here.
Trust me… this is an opportunity you don’t want to miss… because the world is changing at unprecedented rates, and you can either profit from this seismic shift… or get crushed by it.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.