Oh boy. I was standing with Laura and Delaney on a corner in Frankfurt when I realized that things were getting ugly. We were in Germany last week, and right before we got on a flight home, we received an email. We had to get tested for COVID-19 before we flew home. It was a stark reversal of expectations. Remember, we were supposed to be over this pandemic. And – well – it's not a pandemic anymore. It's an endemic. And COVID – by that definition – will be a part of our lives for the foreseeable future. While the United States is cozy and content with the luxury of getting a third shot soon, we are facing dire conditions heading into the fall.
| | | | | | | | Dear Reader,
Oh boy.
I was standing with Laura and Delaney on a corner in Frankfurt when I realized that things were getting ugly. We were in Germany last week, and right before we got on a flight home, we received an email.
We had to get tested for COVID-19 before we flew home. It was a stark reversal of expectations. Remember, we were supposed to be over this pandemic.
And – well – it's not a pandemic anymore. It's an endemic.
And COVID – by that definition – will be a part of our lives for the foreseeable future. While the United States is cozy and content with the luxury of getting a third shot soon, we are facing dire conditions heading into the fall.
This isn't going to slow down. The colder weather will produce new variants. And until we find a way to shut this down, the longer we're going to see big moves in the COVID-19 stocks.
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| | | | | | | | | | | | | Moderna (MRNA) and BioNTech (BNTX) are pure momentum stocks. And the machines are buying them up left and right. There has been little guidance yet around Johnson & Johnson (JNJ) boosters, but the stock is rising higher toward its resistance point of $185.
Me? I like the diagnostic companies. My Surge Point Trader subscribers have enjoyed gains on Co-Diagnostics (CODX). And I think that stock is heading back to $15.00 per share.
My key concern, however, is how bad the fall is for COVID. Schools are returning. Kids are supposed to be in college. Do we really think this is going to work in places across the Midwest, for example?
I think that this is going to be the death knell of schools if they can't get back to campus soon.
Now is the time to invest in e-learning ahead of the fall. Coursera, 2U, and the other virtual stocks are prime buys right now, in my opinion. Get out in front of this ahead of time.
Momentum Check
So, here's another point of interest. S&P 500 momentum went negative today, which is a good reason to gather cash. I'm not sure how long this will last, but I won't make any active buy recommendations for the next 24 hours. Let's stand by and wait for the smoke to clear.
There is still $4.5 trillion in cash on the sidelines. Maybe a nice pullback will put that money to work.
I'll be back to talk about my favorite education stocks in the months ahead.
Enjoy your day, |
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| | | Garrett Baldwin
Chief Analyst, American Markets
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