Writing Sample: Financial Newsletter
Every Power Play Before Executive Action Sends These Stocks Into Hyperdrive
NOTE: The following article was written as an example, displaying my ability to write in the voice of another person. The trades listed below are NOT real recommendations, simply companies I felt added to the narrative of this fake article. I take no responsibility for your financial decisions after reading this work of fiction. I am not licensed under any securities laws to give personalized financial advice.
Action to Take Buy-to-open the following stocks at market price and set a 20% trailing stop:
- First Solar (NASDAQ: FSLR)
- Caterpillar Inc. (NYSE: CAT)
- PNC Financial Services Group Inc (NYSE: PNC)
As the new administration gears up to take power in just a few days, it's time to get bullish on a few executive action plays.
The infamous first hundred days of any presidency is a time noted for drastic policy changes, setting the tone of the years ahead. With a scant appetite for bipartisan cooperation in Congress, we can expect these initial actions from the president-elect to be among the most impactful to come.
While I have proclaimed in the past that elections don't matter, not to stocks anyway, failure to act before particular industries are given a turbo boost would be negligent.
The president-elect has made it clear that his top priorities will include the environment, transportation, and managing the COVID19 pandemic. As you may expect, I've turned my attention to companies involved in green energy, as well as industries impacted most heavily by the trade tariff hikes of the outgoing administration.
The bottom line is that Biden has given us enough of a picture to engage with the following power plays.
First up, we're buying into one of the strongest solar companies in North America.
First Solar (NASDAQ: FSLR)
First Solar has been on the rise for a long time. Many analysts agree that this company has immense potential in both the short and long term. I am expecting a sizable bump in value upon the announcement of any administrative action that pushes green energy projects. Simply re-entering the Paris Climate Agreement, one of the most hotly debated issues in the campaign, could send solar stocks soaring.
It is very likely that we will continue to add to this position using our profit-stacking technique later on as the demand for solar soars across America and beyond.
Next up is a company whose collection of products and services will serve to redevelop infrastructure and more.
Caterpillar Inc. (NYSE: CAT)
Caterpillar is among the largest manufacturers of construction equipment in the world. The company took a beating from declining trade relations and increased tariffs with China. That's because they sourced many raw materials from the region and sell an enormous amount of equipment to Chinese construction firms.
Already we see signs that a Biden administration will bring somewhat of a return of globalism, in part thanks to his cabinet appointees, leading to a reduction in these challenges for Caterpillar moving forward.
Another point in the company's favor is its move into green energy. As with First Solar, Caterpillar may benefit from any upcoming announcements pertaining to reducing carbon emissions. Additionally, if campaign promises for increased infrastructure spending do come to fruition, you're sure to see a whole lot more of that iconic CAT logo.
Finally, we wrap these picks up with a bank expanding its reach from east to west in 2021.
PNC Financial Services Group Inc (NYSE: PNC)
PNC and other financial institutions will likely benefit from any form of economic recovery or stimulus that will come along with the new administration's COVID19 relief plans. The company, which primarily operates along the east coast and some select parts of the Midwest, currently plans on closing a deal with BBVA later this year to acquire their US operations. The current BBVA USA network compliments PNC's well and will convert them from a regional bank to a national player.
And nobody is complaining about their modest 3.57% dividend yield.
Sound good? I hope so.
Keep an eye on your inbox - updates could drop at any minute.