LQD: Investing Preferences Going Into 2023

Summary

  • Yes to Value, No to Growth. When rates/yields are rising, the present value of future cash flows is decreasing.
  • Big No to Big Tech. Tech stocks are among those that enjoyed the most out of the "free money" monetary policy.
  • (High-Grade) Bonds > Stocks. A bird in the Credit hand (coupon) is worth two (price, dividend) in the Equity bush. Having said that, be careful with High-Yield debt!
  • Defensive, Non-Cyclical, Assets. Assuming we're still ahead of (as opposed to already being in) a recession, Healthcare, Utilities, Staples and (soon) Financials remain the sectors to focus on.
  • Note that our "Investing Preferences Going Into 2023" are valid only until further notice. If and when we issue such a notice it will be posted first/solely on our paid services.
  • This idea was discussed in more depth with members of my private investing community, Wheel of Fortune. Learn More »

Businessman draws increase arrow graph corporate future growth year 2022 to 2023. Planning,opportunity, challenge and business strategy. New Goals, Plans and Visions for Next Year 2023.

Galeanu Mihai

A couple of weeks back, we promised to "share extracts from our weekly reviews." This article, taken from an analysis originally published for Wheel of Fortune's subscribers on Nov. 28, is part of that effort.

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The Fortune Teller is a team of two analysts with over 30 years of market experience between them. One of the principles is a formerly licensed investment advisor with a background in asset management. They also hold BAs in Accounting & Economics and Computer Sciences, as well as MBAs, which they use to inform their stock selections

They lead the investing group Wheel of Fortune where they share actionable trading ideas across all asset-classes, sectors and industries. The goal of the service is to provide a one-stop-shop for investment and portfolio ideas, while educating the vibrant community of subscribers. Features of the service include: the Funds Macro Portfolio (only ETFs and CEFs) for less active investors, the Single Macro Portfolio (single equity focused) for more active investors, educational content, and a live chat room to openly discuss ideas with like-minded investors and The Fortune Teller. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FUNDS MACRO PORTFOLIO ("FMP") either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

TipRanks: BUY rating for IEF, TLT, TLH, VCSH, VCIT, LQD, IGSB, IGIB, USIG, SPSB, SPIB, VCLT, SLQD, VNLA, GSY, IGLB

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