Small Stocks to Buy During the Recovery

Called it!

V-recovery is a go. Better yet … it’s setting us up for a multi-year boom!

We predicted this because the underpinnings of our America 2.0 economy are stronger than ever.

And today, three new metrics point to an amazing bull market run for years to come.

But don’t wait for everyone else to confirm what we already know. You can take action now and profit from this recovery.

Small-cap stocks are some of the most under-appreciated investments on the market. But they are also the leaders in market rebounds.

Which means they are your ticket to life-changing profits if you know which ones to pick. (Hint: you won’t find them currently in the Dow Jones Industrial Average.)

Check out this week’s Market Talk for the small-stock buys for the V-rocket recovery:

Welcome to Market Talk.

Indications of a V-Shaped Recovery

U.S. stock futures opened higher today as stock investors wager on the fortitude of the U.S. economic recovery. In all, the market doesn’t foresee further lockdowns, hence giving riskier assets a boost. Based on a series of economic releases last week, I can report that the V-shaped rebound club is here.

Check out these four charts. First up is the V-shaped retail rebound. As Bloomberg aptly noted, May retail sales crushed it. They obliterated expectations across the board and doubled forecasts. Sales soared 17.7% over April. The most going back to 1992. Economists were expecting a rise of 8.4%.

Next up we have June U.S. homebuilder confidence, which rose 21 points to 58, beating economists’ estimates of 45. The National Association of Homebuilders said, “Builders report increasing demand for families seeking single-family homes in inner and outer suburbs that feature lower-density neighborhoods.”

Homebuilding and Housing Market June 2020

The third chart shows reassuring data from the Philadelphia Fed survey that monitors general business conditions. This chart surged 27.5 in June, up from -43.1 in May, marketing the biggest one-month swing since 1968. Its six-month outlook is the highest since 1992.

Philadelphia Business Confidence Surges - June 2020

Lastly, the leading economic index leaped from the worst reading during the lockdown to the best reading ever since 1959. This index includes economic data that tends to move before changes in the overall economy and can give us a future sense of economic health.

LEI Rebound V Recovery June 2020

Food Industry Receives Major Technology Upgrade

Per TheSpoon.com, there’s a food industry subsector valued at $30 billion and growing at a compound annual growth rate of 9.4% that you may not think about too often. This subsector is getting a major technology facelift thanks to Internet of Things (IoT) and big advances in hardware and food prep.

Smart Pizza Vending Machine June 2020

I’m talking about new world vending machines. From fresh homemade pizza made in three minutes from a smart vending machine to robotic baristas that make coffee orders right from your smartphone. Per TheSpoon.com, vending machines today are “basically restaurants in a box that offer high-end in minutes, requiring minimal setup time and have the on-board computing smarts to manage inventory as well as communicate any issues that may arise.

“The small footprint and high-end food these devices offer makes the vending machine industry poised to capitalize on a post-pandemic world.”

Mortgage Forbearance Drop

June 2020 Mortgage Bailouts America 2.0

Per Realtor magazine, “for the third consecutive week going we have seen the number of homeowners requiring mortgage relief drop. It’s a welcome sign on the long-term health of real estate. As of June, 4.6 million homeowners were in forbearance, which is about 8.7% of all active mortgages.

The numbers have fallen by 57,000 compared to the previous week and by 158,000 by May 22, the date when mortgages in forbearance peaked.

Bullish on America 2.0 Stocks

I believe the V recovery is a rocket recovery. It is going to continue in V form for some time to come because of so many of the things we’ve been telling you about.

Housing is literally booming, particularly in the center and the South part of the country. People are sort of fleeing the coasts and moving back to suburban areas and rural areas. That’s an enormous boom. We will need more houses.

Then of course we need lots of things to put into those houses. This is why I believe it’s going to be a multi-year boom, which is why I’m BOP. Bullish, optimistic, positive.

That’s the basic thing that was always in place, the underpinnings of the U.S. economy prior to the crisis was very strong. Without it, markets would be at all-time highs and that’s where we are going.

I do want to make one thing clear: We are not believers in the current stocks in the Dow. I would recommend you all subscribe to Bold Profits Daily, our free e-letter. One of our colleagues, Patrick Goodrich, covers this aspect of how the change is going to hit the Dow.

Right now, the Dow is filled with America 1.0 stocks. However, you will see in the next three, five or seven years, our stocks that are currently across our services will start to populate the Dow. That means even bigger gains for these stocks.

Overall, while there are many people telling people there is a crash coming or a crisis coming, the data, information and stock prices of America 2.0 stocks — we are bullish on America 2.0 stocks. America 1.0 stocks, while some of them might middle along and be OK, America 2.0 stocks will be a V rocket recovery.

I believe this is an incredible time to be in America 2.0 stocks. I’m still bullish, still optimistic and still positive.

Also, starting next week, Market Talk is changing things up!

With America 2.0 on the rise and the Main Street bull market in full swing, I believe now is a great time to let more investing voices be heard as we seek out the BEST opportunities for you.

So, stay tuned for these exciting new changes to come!

Regards,

Paul Mampilly

Paul Mampilly

Editor, Profits Unlimited

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