Monday, January 06, 2020

Four Contrarian Investment Strategies

With the market near all time highs, it's hard to find good value stocks to buy.  My personal bias is to sell into this rally.

However, there are four sectors that I am only slowly selling or continuing to hold:

  1. Oil and Gas.  Tremendously beat up sector.  Some stocks in this sector are paying 5-7% dividends: OXY, WMB, KMI, BP, XOM  Others are at or near all time lows: CHK, MCF, NE.   I am not purchasing any more shares, but holding or slowly selling what I own as the mid-east crisis boosts oil prices.
  2. Gold and Gold Miners.   Gold has just reached a 6 year high.  With the geo-political issues, gold and gold miners could keep rising.   
  3. Biotech.   It has been a long winter for most developmental biotechs.  Fear over Medicare for All, Health Care reform, and price controls have kept these stocks down.
  4. Bitcoin related stocks.  I bought at the end of 2018 and have lost over 80%.  Some of these stocks have started to bounce back, as much as 100% of their lows.  I own OTIVF, MGTI, MARA, HBVTF, and NXTD
If any of these sectors should advance significantly, our investment portfolio would experience a nice windfall.
Disclosure:  We own shares of OXY, WMB, KMI, XOM, CHK, MCF, NE, OTIVF, MGTI, MARA, HBVTF, and NXTD,

For more on  Strategies and Plans , check back Mondays for a new segment.

This is not financial or investment  advice. Please consult a professional advisor.

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