Maket Talk
The tension between Communist China and the US is ramping up in terms of trading policy. The made in China Vs made in America balance is driving decisions that can affect specific companies stock values. Apple and Tesla are two big companies that are being affected negatively in recent share value. Here at the Jones report, we generally avoid issues that are over dependent on China due to the CCP's nefarious ways against America. Some say they have internally declared war on us and practice policies that help America defeat itself from within. The recent book "Blood Money" tells a story to consider. The shipping of chemicals and pill processors to Mexican cartels for fentanyl production and shipping directly into our cities and towns is the tip of the iceberg. We avoid China stocks as they are all CCP controlled and the CCP is NO friend to America. Looking into their practices make such a statement self evident.
Intel (INTC) : Adding to the increasing trade wars and tension all over the world, we see that China is newly introducing a policy to "unuse" Intel and AMD processors, as well as Microsoft in their government computers. This move could have a negative near term affect on a watch stock, INTC. While Intel is branching out building a new chip manufacturing foundry in Ohio and other US locales, the effort is a long term process. There could be near term head winds that may fade INTC share price down into the 30's. The longer term advantage of having a US based company making chips has costs as well and risks. The market may take it's time to watch Intel. With the China news, moving INTC to a "back burner" stock to watch and not necessarily an over-weighted stock for now. On the bullish long side - Intel is positioning on introducing more power efficient 3-D chips than competitors for AI processors. Alas, it's going to be awhile. How forward looking will this market be to overcome head wins and challenges in the mean? Time will give us the answer. BUT in the meantime? It seems something to watch, maybe from the sidelines? Time will only say.
Raytheon (RTX):
With tensions rising everyday on the world front, it seems apparent that America needs to step up our defense capabilities. RTX is gaining traction in stock price with more analysts raising
predictions of over $100 share price to $130 range. see past posts on
RTX. The present threat to America by advanced
hypersonic missiles is growing . We need more defenses. Raytheon with
anti-missile technology is a national treasure, along with some other
companies, to counter the ever growing threat. We can only hope that
advances are made fast enough to stem off those who may get ideas to
sneak attack us with advanced missiles. All is NOT lost because we are
working on advanced detection capabilities that can then be used to take
out threats and respond with appropriate force. However, questions
remain if the developments are coming fast enough.
Raytheon reports one such system developed in test and demo status.
https://finance.yahoo.com/news/rtxs-raytheon-lower-tier-air-150000820.html
Gold: Yes, Gold is near an all time high so not too much, but a just a few shares of an etf such as GLD may be a way to hedge the new world we are being handed. Maybe about 5 shares of GLD may be right to start a position in gold. Why 5 shares? It's just an example to say a portion. Like say, for example, you are feeling bullish on Gold and you were thinking of buying 20 shares of GLD. If that is an initial position, it may be better to hold back and buy 5 shares and wait to see. How many times do we like a stock and buy, only to watch profit taking? Still, starting a long term position in some Gold may stem off inflation. A $7 Trillion budget is in the hopper?
Defi stocks:
some Bitcoin etf's : IBIT, EZBC ?
Bitcoin
seeing a "correction" after recent highs at $73K, but there could be a
strong bounce higher yet. support in the BTC level at $62 K is
watched. If BTC breached $62 K, the next support could be $55 K. If
$62 K holds then $90 K is possible on the halving. Some say HODL . near
term pain for long term gain?
maybe
some Bitcoin (BTC) and Ethereum (ETH) "here n' there" on dips on the
side to hedge inflation and fiscal management of fiat currencies?
ETH could see new etf's coming but some Crypto pundits are thinking perhaps not yet like in May.
Devon Energy (DVN): Oil
and nat gas producer here in America, history of stock buybacks,
variable dividends on profits, whales are buying DVN. It seems to be
coming off a bottom - headed higher.
For now, we close by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time. But trying to look ahead a few months into the future may be a way to do things. If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor. With all the above caveats and attempted prognostications, I will close this post.
Stay tuned for more opining on the market and stocks to watch.
_____________
