Hi everybody, Jeff Yastine here.
I’m back for a quick follow-up to yesterday’s chat, and to share with you some of my recent trading ideas and content so we can better get to know each other.
You know, I started out my working career, I was a local news journalist. I covered everything from the boring stuff, like county commission meetings, to the tragedies we see all too often on the evening news.
But one thing I learned… it’s often the news developments no one pays attention to — stories considered too boring, unimportant or too hard to explain — that wind up having the largest impact.
That’s certainly true with investing in the stock market.
So let’s get to it…
For years now, next to no one has been bullish for oil stocks. That includes both Obama and Trump voters.
The industry and its stocks are slogging through an uphill climb thanks in large part to three problems: too many bad companies that can’t turn a profit, a supply glut and low prices.
But with the 2020 presidential election less than a month away, things are about to change from bearish to bullish for oil stocks… and inflation. And that’s no matter who wins, incumbent President Donald Trump or former Vice President Joe Biden…
The coronavirus pandemic was the final nail in the coffin for some oil companies. Before COVID, the only thing keeping many of them in business was low interest rates and cheap loans.
According to the Institute for Energy Economics and Financial Analysis, most of the top drilling companies were actually losing money — before the pandemic. Out of the top 40, only four had positive cash flow in the first quarter of 2019.
That’s hardly a recipe to be bullish for oil stocks.
In fact, more than 200 drilling companies have gone bankrupt over the past five years alone. Many of the survivors kept pumping oil to make their loan payments and try to live to fight another day.
But then came the pandemic… and oil prices cratered — literally below zero — as demand plunged. Twenty more U.S. drilling companies have declared bankruptcy, with Chesapeake Energy being the most notable.
Chesapeake is a pioneer in shale drilling and was once one of the industry’s largest firms. It filed for bankruptcy protections in June with more than $9 billion in debt.
Deloitte, a consulting firm, expects yet another wave of bankruptcies as drilling companies will look to write-off more than $300 billion in bad debts.
So why should anyone be bullish for oil now? And what does any of this have to do with inflation?
Check out my video and let’s discuss in further detail.
Maybe the biggest acquisition news to ever hit the video gaming industry happened recently when Microsoft bought Bethesda Softworks parent company ZeniMax Media for $7.5 billion.
For those who don’t follow the gaming industry, Bethesda is one of the biggest names in the world. It is the studio behind some of the biggest franchises.
Elder Scrolls, Doom, Fallout, Wolfenstein and Dishonored are all titans in the industry. Doom Eternal was released on March 20 and will likely be up for a number of awards this year.
Elder Scrolls V: Skyrim is one of the biggest games in history. It is the subject of countless memes poking fun at how many consoles it’s been ported to since it’s release in 2011. Elder Scrolls VI is coming in the next couple of years. And like Skyrim, it’s sure to generate hundreds of millions in sales.
And now it could be exclusive to Xbox consoles…
Microsoft Bought Bethesda. So What’s Next?
Microsoft buying Bethesda addresses one of the biggest complaints about its first-party games. Or rather, its lack of big first-party games as it competes with Sony Corp. (NYSE: SNE) and its PlayStation brand.
This is a major shot across the bow of Sony, which dominated the current generation of console sales at a 2-to-1 ratio. With Microsoft buying Bethesda, it gives it sole ownership of all Bethesda IPs, and allows it to make the games part of its subscription-based GamePass model… sort of a Netflix for video games that costs $10 a month.
Sony does not yet have a real rival to GamePass, which has seen its subscription numbers rise by 50% to 15 million — in the past few months alone. So Microsoft buying Bethesda is quite the coup.
And this news comes just ahead of the November release of the next major consoles, Sony’s PlayStation 5 and Microsoft’s Xbox Series X. Google parent company Alphabet Inc. (Nasdaq: GOOG) and Amazon Inc. (Nasdaq: AMZN) are also getting into the video game streaming business. So business is clearly booming.
Of course, the headlines behind this major acquisition quickly came and went, but the repercussions will last for years.
You may not be a gamer, and that’s totally fine. I am not.
But In the U.S. alone, the gaming industry is worth about $66 billion a year in sales. Worldwide, it’s worth about $200 billion. As an investor, there’s money to be made on this news.
And I think there are more big acquisitions to come…
So click here and we’ll continue the conversation.
If you’re new to investing, times like these can make your head spin — but amid the volatility and big sell-off of September 2020, I’m turning bullish on stocks.
Three or four weeks ago, everyone was optimistic, and nearly every trade seemed to be a winner. A vaccine for the coronavirus was right around the corner, the Federal Reserve and federal government were propping up markets and the economy with stimulus.
But now, there’s been an about-face. The virus is rearing its ugly head again around the world, spurring new shutdowns, particularly in Europe, and it looks like we’ll get a second wave. There’s a lot of strife around the upcoming election and the two sides are constantly at war.
So maybe the market isn’t so much fun now… welcome to the world of investing!
Nevertheless, I’m turning bullish on stocks amid a month-long sell-off.
First, if you’ve followed along with my videos, you know that I’ve been warning about a sell-off for a while now. Back in August I said in another video that I thought the ongoing rally would end by Labor Day weekend in early September.
You see, the stock market is all about probabilities. Traders swing from optimism to pessimism… and back again. The best thing you can do is keep your head on straight and not allow yourself to get caught up in the emotion.
Of course, as in life, nothing on Wall Street is certain. But as I said, the market is about probabilities. The odds of something happening or not happening is like a horse race every day where the betting never stops.
Check out my video and I’ll reveal exactly why I’m turning bullish.
This is just a sampling of some recent insights and stock ideas. I hope you like it.
The great thing about the stock market — it’s always changing and always giving us more opportunities to make money.
I’ll have more recommendations for you in the coming days.