Author: Let’s Talk Money! with Joseph Hogue, CFA
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The three stocks I’m buying January 2022 and how to invest in the biggest investing themes of the year. Start 2022 off with these stocks to buy and the Bow Tie Nation portfolio!
Follow these and all the stocks in our 2022 Bow Tie Nation portfolio on Stockcard. Use promo code bowtienation for a special discount beyond the free trial! https://mystockmarketbasics.com/stockcarddiscount
In this video, I’ll show you the sectors and themes I’m following to invest in 2022. I’ll reveal the three stocks to buy for January 2022 in the Bow Tie Nation portfolio and then show you how you can start a portfolio with a chance to win over $1000 in cash and prizes.
One of the biggest investing themes for 2022 could be retail stocks. Retailers and stocks in the consumer discretionary sector got slammed during the pandemic and while the broader sector, so all the stocks in that consumer spending sector, has rebounded…there’s still quite a few trading in deep value territory.
For example, if we look at the sector tracker on sectorspdr.com we can see that stocks in the consumer discretionary sector have jumped more than 27% in the last year, just edging out the return on the broader market. But if we sort the list of stocks in the sector on the right here, we see there are eight stocks with negative returns and in fact, 26 of the 60 stocks are posting a return of less than 20% in the last year.
Now looking at data on household finances, we know that consumers are sitting on a mountain of cash saved up during the pandemic. At one point, JP Morgan estimated that households had as much as $2 trillion in savings beyond their 2019 balances. That money is ready to be spent and ready to boost these hardest hit retail stocks so that’s a major theme I’ll be watching this year.
Besides watching stocks in the consumer discretionary sector, I’ll also be watching bank stocks again this year. These were some of our best performers in last year’s portfolio with a 70% return on shares of Wells Fargo, and there’s still value in a lot of these stocks.
Interest rates came down in the last weeks of the year with the 10-year Treasury hitting 1.4% on that omicron panic. Rates are expected to head back up to 2% this year and that could mean a cash bonanza for bank stocks. Remember, banks make their money by paying you ultra-low short-term rates and then lending that money out in long-term mortgages so if rates head higher, we could see bank profitability jump again this year.
Announcing the Bow Tie Nation 2022 Portfolio Contest! Click through the link to Stockcard above, find the Your Portfolios here in the drop-down menu and click on New Portfolio. Besides the name and description for your portfolio, select the Contest – Bow Tie Nation as your portfolio goal. That will put it on a page with all the contest portfolios, ranked by returns. Publish it and manage the portfolio until March 31st. You can buy or sell stocks in your portfolio, it’s all simulated so totally free to participate.
The top portfolio at the end of March will win $250 cash and a one-year VIP access to Stockcard and your choice of my video courses, either Learn to Trade Stocks or our Goals-Based Investing course. The top five portfolios will also win my Complete Portfolio and Stock Comparison spreadsheet!
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.