This Week’s Top Pick Offers A Lot More Than Just Big Profits

You're not the only one feeling it – times are strange for investors. We're enduring a pandemic that's ending, but it isn't over just yet. A lot of people are vaccinated, but not enough. There are fewer COVID-19 restrictions, but they could come back in a hurry. The economy is recovering, but it's not "there" yet. People are piling into travel, entertainment, and leisure stocks, but those fundamentals haven't improved that much. Weird.

On the other hand, we've got traditionally strong tech stocks acting sluggish, and a relatively wide divergence between the Nasdaq and the Dow. Yikes. A $1.9 trillion stimulus is about to hit, which should help the recovery, but this also runs a clear risk of inflation. That suggests gold should be climbing, but instead, the yellow metal is falling into a bear market pattern we haven't seen since 1979. Strange.

So, no, it's not just you. These are curious times, but you've got to be in the market to make money; we've all got to dance to the tune that's playing. So I've picked us a stock that'll bring clarity where there's fuzziness, security where there's uncertainty, and, best of all, will bring nice profits to our accounts.

The Truth Is We've Been Here Before

Yes, the market does feel strange, but we've experienced similar conditions before, albeit not in a pandemic. We've seen big divergences across the big indexes before, and in fact, they diverged in 2020; it just didn't seem that odd that they just all finished the year nicely up. More than 43%, 7%, and 16% on the Nasdaq, Dow Jones Industrials, and S&P 500, respectively.

There have been big divergences three other times in the 21st century; in 2009, 2003, and, to the downside, in 2000. Each of those divergences followed a crisis of some kind. 2020 was the pandemic, of course, but also the financial collapse of 2008, the Sept. 11 attacks in 2001, and the dot-com crash of 1999. This is the market's way of sorting itself out after a crisis.

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