2021 will be remembered as the year of the meme stock, WSB debauchery, and retail investors coming out of the woodwork to hedge their quarantine boredom.
The inevitable shift towards value is now upon us as the dividend lords prevail and social sentiment backed investments dwindle to speculative bets.
It’s critical to take an objective look at your risk assets and balance accordingly to avoid uniformity. Whether it’s a deep dive into Web3 or DeFI, diversification will be more important than ever and spreading yourself too thin will be less of a concern.
AT&T ($T) First and foremost it's only fair to point out the undervalued elephant in the room. $T has a quarterly dividend of $0.52 and has been trading sideways for 12 years now. The company has $12b in cash reserves and is poised to run a marathon. The slightest bit of positive news, a new CEO or an analyst upgrade will send this equity to mars. The bell telephone lineage, market share dominance in cellular and soon to be home internet will outline $T as a standout stock in 2022.
InPlay Oil Corp ($IPOOF) coming in at number 2 with a P/E Ratio of 8.84 and a profit margin over 30% it makes sense why this one has buy ratings across the board.
Petroleo Brasileiro SA (Petrobras) ($PBR) another oil play, this one out of Brazil, that’s set to provide consistent returns into the new year. The 19% dividend yield alone is enough of a reason to get a position here. From a chart perspective, the stock has strong support at the $8 range and struggles to dip much lower.
ARK Innovation ETF ($ARKK) - It’s typically harder for me to look at ETFs as I have a passion for individual equities but trading ARKK allows me to kill birds with stones. Instead of catching knives on $SNAP, $TDOC, $ROKU, $ZM, $PTON etc. ARKK provides the exposure with limited risk to owning the shares upright. Cathie Wood is an expert in innovation and buying dips so I let her take the wheel here. Having ran to $159.70 in February and now sub $100, ARKK is a no brainer buy for me.
Under Armor ($UA) - Last but most definitely not least, Under Armor is set for a LuluLemon type of killing spree into the new year. Last month the stock was hitting new high after new high and docked a 52-wk high of $23. With the recent pull back, the stock is currently down 15% on the month and sits right above it’s support level of $17. The company doesn’t miss on earnings and since 96’, they’ve established themselves as a quality brand that’s inexpensive compared to it’s competitors.
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