Saturday, March 5, 2022
Investing in value stocks in the face of a raging war of aggression, inflation, Fed rate hikes, and an energy supply dilemma
Greetings fellow citizens of the world. I hope you are all safe and well. Our hope and prayers go out to the men, women, and children of Ukraine.
The brave people and freedom fighters of Ukraine remind me of our brave patriots in America in 1776, when another country with an overwhelming army force tried to dominate a free people here. Our patriots used a strategy of attack, fight and retreat, always drawing the enemy out of position. Until finally they moved them into a position where they had to surrender.
At the same time, you still need to work on building a portfolio of stocks for your life and retirement, so I am back to give you ideas! So say the idiot leader, decides to connect Kalingrad back with the main body of Russia. Suddenly, this attack on NATO, triggers the source of Russia's wealth and oil, Volgograd to be taken under control or blocked from delivering Russian oil. It could happen, triggering $200 a barrel oil.
So I think it would be a good idea to take a position in Chevron (CVX) and EOG Resources, (EOG) . These stocks are already up a bit, but this war is only in Day 10. *********************************************************************************************************************
In the fog of war, there are a lot of other things going on with the rotation of our stocks here in the USA.
You may have noticed that there are many people at the airports traveling and that coming out of Covid things may pick up dramatically with travel from people being couped up. I think that Delta Airlines, (DAL), is quite a buy here. They also have a hedge for jet fuel with owning some oil processing properties. I also like a company that has been waiting a while to get chips to finish their electric trucks. They should get them soon. Ford, (F), can be purchased at a discount here. The Ford F-150 is the most popular truck in the world. Ford's electric truck should do pretty well. I also like a little bank stock that is going to complete a merger and is trading under book value. New York Community Bank, (NYCB). They should have a well supported dividend and good earnings. (this one is my broker's idea!)
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Back to the battle lines of the war. Russia is locked down for business, (I support the Russian people, but not their leader), and now with Belurus being sanctioned also, there is going to be a big shortage of agricultural chemicals like potash for farming. I like and own FMC Corporation (FMC), and I also like The Mosaic Company, (MOS). Russia and Ukraine combined provide around 40% of the wheat for all of Europe. These are big countries. So this is a major robbery by Putin for wheat, oil, and the natural gas properties that lie below the Black Sea off of Crimea. Putin wants and needs this wealth to keep control of his country. He will never control Ukraine in the long run and he will probably bring his own country down to its knees and to needless suffering.
Glory to Ukraine!!
Freewilly
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