I’ve finally found some companies worth investing in!
That’s right! After all my complaining over the last few months about how everything is over-valued and there’s no good investment opportunities about, I’ve actually found some!
So this is what my account looked like at the beginning vs. end of June and where I ended up in terms of cash:investment split.
In summary, not the best month yet! But this is mainly due to the fact that I’m holding a lot of cash (70%), which is earning no interest, plus, I was still holding the few stocks I was down on after I sold everything I had made huge profits on but wasn’t happy holding based on current valuations.
Moves Made This Month:
The good news is, I made some moves:
So, this month I put some money back into some ETF’s I felt shouldn’t be too susceptible to any future volatility resulting from the pandemic. Namely, the Global Clean Energy & Global Water ETF’s.
My thesis on these isn’t anything complex:
- Global Clean Energy: It’s becoming increasingly clear that many countries are looking to make their economic recovery plans green. Meaning we’ll see a stream of announcements regarding government spending and investment in green projects, thus boosting the value of companies in the green energy sector. Just this week, the UK government announced it would be fast-tracking the investment of £5 Billion on improving the energy efficiency of public buildings (Schools, hospitals, etc), as well as potentially providing social housing occupants with £5,000 vouchers to spend on energy efficiency measures for their homes!
- Global Water – People need water. Pandemic, or no pandemic. Am I wrong? 🤷♂️
I intend on holing these for a very long time.
The individual stocks I’ve purchased: Wynn Resorts, Cirrus Logic and The Cheesecake Factory are all stocks that were on my watch list before the March lows and stocks which were majorly impacted by the pandemic, especially Wynn and The Cheesecake Factory.
All were companies I’d very much liked for a long time based on their financials, past performance and future growth potential, and the market had given me a great opportunity to now purchase these stocks I’d been watching for so long.
Stock Pick of the Month – Wynn Resorts
I’ve had my eye on this one since I started investing a year ago. I was able to get Wynn at $68, which is an absolute steal, in my opinion, for a stock that previously sat at $152! Of course, Covid has impacted hospitality much worse than most other industries. So, it’s only right the stock should be this low.
However, Wynn are a great brand and an incredible money-making machine when the casino’s are open, of course! But they WILL re-open. And when they do, there will be hundreds of thousands of people wanting to get to Vegas and Macau where their resorts are located. People who had holidays planned that are now postponed, people who have yearly trips to these places that they haven’t been able to make and spontaneous holiday makers who have been cooped up at home and want to get to sin-city to let loose!
Therefore, I strongly believe that Wynn will recover from this situation within the next two years, and return to a valuation above $120.
My Watch List:
These are all the stocks I’m currently tracking. And I have price targets for all of them which I’m monitoring and altering based on changes in the market on an almost daily-basis! Most of them are still considerably higher in price than I am willing to buy as they are valued much too richly considering the impact the pandemic has had on them.
I’m confident that during earnings season, many of these stocks prices should begin to fall down to more reasonable valuations. At which point, I can start to invest some of my cash back into the market! I’m at 70% cash at the moment and it’s safe to say it’s burning a whole in my pocket! I’m very keen to buy some stocks right now, but I’m hoping good things will come to those who wait and don’t fall for this ridiculously unsustainable market we’re currently in.
I’m VERY happy to be putting money back into the market after the last few weeks of not being able to find anything I was happy to invest in. I’m super happy with my choices so far and pretty confident that I’ll have some huge opportunities in the coming weeks as earnings begin to get reported!
What are your thought’s on the market right now? And what stocks or ETF’s are you putting your money into that I should check out? Let me know in the comments, or reach out to me on social media using the links at the top of the page!
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