The sadly played out freak show in Washington has provided us with a least a few stones placed on the preverbal “Wall of Worry”. Without the resolution yet in hand, I have already played mine. As long fear dominates the investing landscape I think you can make money on the upside.
Interestingly, a few months ago I started seeing lots of smaller Chinese companies appearing near the top of the Magnet lists. Initially, my first reaction was- too many thorns, too much risk. The accounting issues and political concerns even got to me- the one that tries so hard to be unemotional and just “use the model”. This case is was The “Great Wall” of Worry.
My practice is to set “alerts” -showing me both price and volume alerts and the “Top Ranked Magnets”. As these alerts go off- it’s time to put money to work. At this point many of them have already gone off. In my portfolio we have several. Yesterday Noah Holding (NOAH) simply blasted off. I am guessing being in the wealth management business in China is a good place to be, based on the company’s Magnet® rank. As of today, NOAH is already extended for a good entry point- but I think you’ll be hearing about his one again. There are several others too small to mention in this note…
I always use the Wall of Worry as one of my guides. Valuation is the other. From my view, I am comfortable owning the best Magnet® stocks while everyone else is still expecting gloom and doom. We I can see over The Wall of Worry…I’ll be letting you know that too! For now, I think we are in a great spot to invest.
This article has been prepared solely for informational purposes, and is not an offer to buy, nor sell or a solicitation of an offer to buy or sell any security, product, service or investment. The opinions expressed herein do not constitute investment advice and independent advice should be sought where appropriate. All information and opinions expressed herein are current as of publication and are subject to change without notice.
Disclosures: Jordan Kimmel may be trading in these stocks in Magnet AE.