This Is The Safest "Recovery" Stock To Buy This Week

Efforts to get COVID-19 vaccines into Americans' arms are picking up the pace.

The CDC says around 1.5 million people, give or take, are getting the shot every day, and the number of people vaccinated every day has outpaced the number of newly infected people for a few weeks now.

That means the end of the pandemic is on the way, and that means recovery is picking up steam, too.

And strange as it might sound, that recovery has actually been the cause of a lot of the chop we've seen in the markets this past week.

Interest rates are creeping up, even though they're still near rock-bottom if you look at any kind of long-term picture. That's been good for financial stocks. Money's been rotating out of the stocks that performed so well during the pandemic and into stocks that should do well in a growing, waking-up economy, like energy – we've talked about oil demand here before – the industrials, and cyclicals.

With such a huge shift in the way capital's working right now, it can be tough to tell where the hyped-up froth is, where the stocks to sell are, and most importantly, where the best buys are.

Let's dive in – I've got a great recovery play lined up.

Let's Be Clear About What's Happening

There's no doubt: Recovery is coming, and before long, pent-up demand is going to pour out like gas on a fire. But I have to say, I see a speculative bubble is forming, too. People who may or may not have major-league cabin fever are piling into travel and leisure stocks that may be buying one day, but not now.

Unfortunately, folks jumping into these aren't "early" – they're setting themselves up for a nasty shock.

The biggest travel and leisure names have been absolutely on fire lately – a lot of them are trading near or even above pre-pandemic levels, which makes no sense to me.

As I already mentioned, airlines are still only doing a fraction of the business they were before COVID-19. Oil demand still has not fully recovered, with jet fuel demand not expected to recover until 2022 or even 2023.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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