In volatile times it is extremely hard and not wise to give forecasts. The Golden Investor will brush the condensed goggles of investors to look at the most important factors determining the outlook for this month. The problem with the recent Tesla’s skyrocketing is that the fundamental base for profit outlook just isn’t there. Add the current slowdown in China, where Tesla (TSLA) has a megafactory in Shanghai, and the outlook for Tesla (TSLA) is looking not that bright at all. Stay away from Tesla stock at current levels.
While China’s corona numbers start to look growing at a lower pace. The most corona fears in the US have declined immensely this week, investors seem not to care about the worsening situation in China. China, the country with tens of thousands of Uighurs in holocaust-like work camps, the country which steals IP-idea’s across the globe, the country which is known for its silencing of whistle-blowers, you get the idea. The Golden Investor thinks the corona spread is far worse than the Chinese authorities are reporting. Today the first inter-country infection without a link to China was reported, a woman who traveled to Thailand and returned to South Korea contracted the corona virus. More concerning: this morning a case in Japan was confirmed, after getting the chills this thirty women from Wuhan got tested and was tested negative. Three days later her symptoms got worse and she returned to the hospital, this time she was tested positive. Today a WHO expert told that wearing face masks is not as effective as washing your hands, so The Golden Investor suggests a more broad corona portfolio with medical equipment suppliers (Lakeland Industries & Allied Healthcare Products) and pharma stocks doing research on corona (Inovio Pharmaceuticals).
On the short term oil prices will further decline as corona spreads among the world. That’s why it is smart to temporarily stay off gold related stocks and wait until corona worsens until we reach a point where a significant global slowdown is certain. The Golden Investor has taken some hits after this weeks cooldown of corona related stocks, but as the disease spreads among the world it is time to wait on the first China-unrelated death in the US for investors to get their fear back. Note that corona has been spreading since December and only recently became a global disease, moreover healthcare and disease-experts are almost sure a pandemic is just around the corner. If the situation worsens and corona stocks will skyrocket again corona investors should transfer their assets to more defensive and gold intensive portfolios to be safe against the downturn the global economy will see in the corona aftermath.
Next week FDA approval will likely occur for Agile Therapeutics (AGRX) so be sure to hold some Agile stocks. Agile has seen a rise in stock price since their approval date was shifted to next week. At the latest on February 16th the Agile approval or denial for Twirla will take place. The company is heavily dependent on the approval of this new contraceptive adhesive plaster, an approval would mean extremely high gains, if approval is not given by the FDA then investors will be hit hard. This is the high risk, high reward kind of decision investors need to make.
Disclaimer: The Golden Investor is not a fortune-teller, be sure to make the right decisions in accordance to your own financial situation, this is not investment advise or anything like that.