Investors Should Rotate to Value Stocks Now

Investors Should Rotate to Value Stocks Now

$DIS, $QCOM, $AAPL, $INTC, $KMI, $NWL, $XAU

We have been see over the past weeks stocks moving back to their all-time highs marked in September 2018. And are seeing the drive further North from here.

A few blue chips have been surging in the past week, and are far higher than they were back in September.

The Walt Disney Company (NYSE:DIS) just announced its streaming service, Disney+, and the market loves it driving shares to new all-time highs. And it has taken the stock from a 95-115 trading range into the 130’s.

Qualcomm (NASDAQ:QCOM spiked following opening statements in a jury trial with Apple (NASDAQ:AAPL) early last week, both companies agreed to settle their issues.

And following that news, Intel (NASDAQ:INTC) announced that they would notcompete with Qualcomm by making 5G chips for mobile devices. Shares of all 3 companies are on the week.

“While blue chips are helping to drive the index back to all-time highs, investors should be wary of chasing these companies higher—as with any big company jumping more than 10% in a single day. That kind of trend is not sustainable, no matter how attractive it may look to jump in,” writes news letter writer Andrew Packer.

The Big Q: What should investors do instead?

The Big A: Take some profits in positions that have rallied and add them to good stocks that have not participated. And some of those companies at multi-year lows that look attractive.

Like…

Pipeline giant Kinder Morgan (NYSE:KMI) just bumped up its dividend payment and now yields over 5%.

Newell Brands (NYSE:NWL) has a 5% yield. This company, maker of everything from Coleman lanterns to Mr. Coffee coffeemakers, owns a variety of brands, the company looks to be worth more than the sum of its parts, and looks like an attractive value play in here.

In the commodity space

Gold, like any form of insurance, is cheaper when it is not needed. When it is needed, the price tends get much dearer. Investors looking for a hedge play against today’s calm markets can look to Gold bullion.

In summary, while a few big-name companies are helping the market get back to the all-time highs again, remember, there is always a better value somewhere else if you are willing to do your homework.

Have a Happy Easter Holiday weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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