Russia, the Federal Reserve and inflation dominate headlines right now.
The first is a tough topic to broach. The wholly unnecessary conflict is a humanitarian crisis. Hundreds of Ukrainians’ lives have become collateral damage. And millions more are fleeing their homes in search of safety.
My heart goes out to them. I pray for peace and healing, and fast.
But, as chief investment strategist at Money & Markets, I want to help you understand how this crisis is affecting markets … and what you should do next.
Let’s start with the ongoing supply chain issues.
How to Trade Around Headlines? Don’t!
I know there are a lot of unanswered questions regarding the situation in Ukraine.
Hey, I get it. The headlines can be scary when they’re filled with words such as “war,” “crash” and “inflation.”
But investing based on headlines rarely leads to profits.
In my premium stock research service, Green Zone Fortunes, my team and I focus on powerful mega trends that have staying power.
We aren’t looking to flip a stock tomorrow. We’re looking for something we can hold for anywhere from six months to three years.
For instance, I’m sure you see the daily headlines on inflation. It rose 7.9% in February — the largest price increase we’ve seen since 1982!
But the primary drivers of that inflation often get lost in the noise.
And one of the biggest is the supply shortage that causes bottlenecks and price hikes downstream.
The Problem With the Supply Chain
We live in a world of “just in time” inventories.
Companies don’t want to pay for storage costs or tie up capital in inventory. So they tend to order just what they need when they need it.
In a normal world, that’s fine. But it never left much of a margin for error.
When the pandemic first struck at the end of 2019, we used up those “just in time” inventories in a hurry — and we’ve been scrambling to catch up ever since.
But there’s more to it.
At the pandemic’s start, we needed more packaged food, toilet paper, medicines … I could go on.
We had to turn the world’s distribution system — planes, trains, 18-wheelers, even Amazon drones — upside down to accommodate these new demands.
That container we planned to stuff full of auto parts from South Korea and put on a boat to Los Angeles? We might have repurposed it to ship medical masks from China to South Africa.
And now, rather than being back in South Korea where it’s needed, that empty container is sitting in South Africa.
The War in Ukraine: A New Wrinkle in the Supply Chain
Now suppliers that were hopeful for omicron’s end have a new set of issues to deal with.
We won’t know the greater impact of this conflict on the supply chain immediately. But any industry that was struggling with a global pandemic probably isn’t ready to welcome a major conflict with open arms.
And that means we should be on the lookout for profitable opportunities within this space.
We Can Fix This Mess … and Profit With a Supply Chain Stock
We won’t fix a mess like this in a day.
But we will fix it. There’s too much at stake.
Back in November, I recommended that readers of Green Zone Fortunes buy shares of a shipping and logistics stock that was in an ideal position to profit from the righting of this ship.
We’re up about 18% so far. More importantly, the stock has thus far sidestepped the correction.
Year to date, my pick is up 19%, while the S&P 500 has lost 11% of its value!
The stock rates a “Strong Bullish” 99 out of 100 on my proprietary Green Zone Ratings system for stocks.
Now, I can’t share the company with you. That wouldn’t be fair to the folks who subscribed to our research. (Click here to see how you can join.)
But remember: We can always find ways to make money, even in a rough market.
It’s as simple as targeting the right mega trends.
And my brand-new “Infinite Energy” presentation will show you why I have such high conviction in the renewable energy revolution.
Click here to watch now, and see how you can crush the market in the green energy space.
To good profits,
Adam O’Dell
Chief Investment Strategist
Story updated on March 11, 2022.