Where are all the hot stocks of 2016 hiding? They’re right in front of your eyes. This is how you spot them.
Sometimes obvious is better than clever, so look around for the obvious. If obvious doesn’t get their attention, tell people you’re investing based on the principles of Occam’s Razor.
Among competing hypotheses, the one with the fewest assumptions should be selected.
Translation: trust your eyes, your experiences, and your judgment—then buy stocks and sell calls to lock in a January profit.
Here’s what I see…
- Lots of brown boxes in the recycling bins with the word Amazon (NASDAQ:AMZN) on the side of many.
- A United Parcel Service (NYSE:UPS) driver coming out of the cab of a U-Haul. They’ve run out of capacity and need more than just their big brown trucks.
- Black Friday and Cyber Monday sales. A 39% market share compared to a 37% market share in 2014—Amazon, again.
- An order from Apple (NASDAQ:AAPL) for a high-end computer delivered in days by FedEx (NYSE:FDX) with tracking as good as Amazon’s.
- Another order from Apple—this time the store. More than $900 to outright buy an iPhone. Took all of fifteen minutes, processed on an iPad.
- Foodies, and people giving gifts to foodies; all trying to comprehend the cost of a copper pot at Williams-Sonoma (NYSE:WSM), shaking their heads and walking out with a Nespresso (Nestle S.A., OTCMKTS:NSRGY) machine.
No, that’s not six stocks; Nestle is too hard to trade.
And when I say trade, I mean own shares and sell calls against those shares, which is the ONLY way to invest in today’s market.
Be obvious. Walk around, ask questions (don’t get the security guards anxious), and have great New Year.
(Michael Shulman owns shares of AAPL.)