The markets kicked off this week on a much quieter note.
With the first-quarter earnings season wrapping up (about 95% of S&P 500 companies have reported their quarterly results) and the major inflation reports out of the way, there’s only one issue left for Wall Street to stress about: the deficit ceiling.
The political football that is known as the deficit ceiling negotiations has temporally caused Treasury bond yields to meander higher. Treasury Secretary Janet Yellen recently said in a Bloomberg interview, “If Congress fails to do that (lift the deficit ceiling), it really impairs our credit rating. We have to default on some obligation, whether it’s Treasuries or payments to Social Security recipients.”
Naturally, what Secretary Yellen said will not happen, since it is political suicide. The fears over the deficit ceiling are unfounded, since in the end the deficit ceiling will be lifted after each side strives to score their political points.
Barring the deficit ceiling debacle, the week should continue to be relatively quiet ahead of Memorial Day weekend. However, the same can’t be said for my Portfolio Grader, which revised its ratings on 119 stocks over the weekend. 32 were downgraded to a “Hold” (C-rating) or “Sell” (D-rating) and are not the stocks you want in your portfolio.
In today’s Market 360, I’ll share 10 stocks my system flagged this week that should be avoided right now. And then we’ll consider where the best money-making opportunities are right now…
This Week’s Ratings Changes
I’ve listed the first 10 stocks that were downgraded to a D-rating below, but you can find the full list – including their Fundamental and Quantitative Grades – here. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
|Ticker||Company Name||Total Grade|
|AEP||American Electric Power Company, Inc.||D|
|BIP||Brookfield Infrastructure Partners L.P.||D|
|BMY||Bristol-Myers Squibb Company||D|
|CNP||CenterPoint Energy, Inc.||D|
|CVE||Cenovus Energy Inc.||D|
|DGX||Quest Diagnostics Incorporated||D|
Invest in Hyperscalable Companies
So, where should you invest instead?
These are the companies that can massively grow revenues while minimally growing the costs associated with producing.
This hyperscale business model is about to hit almost every industry you can think of and create enormous long-term wealth for shareholders – no matter what happens to the market or the economy.
And right now, investors have a rare chance to buy the best of them while they’re still trading at bargain prices.
To help ensure that investors don’t miss out on what could be one of the greatest investment opportunities in decades, Whitney Tilson and I decided to hold a 2 Legends Predict 2023 event today.
During this event, we explained…
- Why the bear market of 2022 has created an unusual opportunity for ordinary investors.
- Why it could soon create a wave of millionaires on a single investment, thanks to today’s historically low prices.
- And why some stocks will crash as a result.
We also revealed a free stock pick to play it all. If you missed today’s briefing, click here to watch the replay now.
Louis Navellier – a $1 billion money manager whose fund saw a 4,000% total return over 15 years…
And Whitney Tilson – one of the most connected men on Wall Street – who predicted the bottom of the market, to the day, back in 2020…
Predict we’re on the threshold of the third biggest money-making opportunity they’ve seen in 23 years. It could cause some of the best-known companies to crash or go bankrupt while other companies could go on to rise 10,000%.
But you must get in NOW, while the market’s still being shaken-up… at historically low prices you may never see again in your lifetime.