Raising A Glass To Success In 2022

The S&P 500 brings in major wins, THESE three stocks are the ones to watch, and a secret battle rages over America’s drink of choice. January 04, 2022 [Turn on your images.]( Raising A Glass To Success In 2022 It’s a new year, and things are looking up for the American economy. In 2021, the S&P 500 delivered record wins for investors, and experts predict similar returns in 2022. Those same experts also predict that THESE three stocks are the ones to watch this year…but can we trust that these experts know what they’re doing? Will 2022 be a year full or major gains…or catastrophic losses? But regardless of whether American investors are toasting their successes or drinking away their sorrows, the alcohol market is there to provide. But a secret battle is raging in the industry, and the winner will determine the next generation’s drink of choice. --------------------------------------------------------------- [Turn Your Images On] [The S&P Killed It In 2021…But Will It Continue In 2022?]( Shawn Ambrosino If there is one underlying American personality trait, I think it’s the fact that we love to win. A thirst for victory isn’t uniquely American, but it is something that Americans have taken seriously since even before our nation actually existed. I think it comes from a need to prove ourselves worthy of the freedoms we demanded from Britain back in 1776. I think that, by winning at almost everything we do, Americans prove to our former rulers and to the rest of the world that even though our nation may be younger than most, we’ve earned our place at the world table. Of course, I’m no historian or social scientist. These are just the thoughts of a middle-aged man who has seen a lot of what our country has to offer and what makes us tick. Winning is a big part of who we are. In fact, it may be one of the reasons that Donald Trump won the presidency in 2016. He was able to touch on that primal American drive to win, and he never failed to mention how his administration would win—and win “bigly.” Of course, whether or not he was successful in that venture could be debated, but there’s no doubt that his “America First” concept resonated with a LOT of people. Did You Win In 2021 Winning just feels good… And over the past year, investors have been winning a LOT, and the market has been very good to a LOT of people. Easily one of the bigger winners was the S&P 500, which returned record profits for those who bought in 2021. How big? Well, generally, the S&P 500 averages 12.6% returns, with occasional fluctuations within the 11-13% ballpark. That being said, the S&P DESTROYED that trend in 2021 by more than doubling average returns! The index was up 26.89% on the year, which blew both the Dow and the NASDAQ right out of the proverbial water. That’s big… But as we move into 2022, facing all the problems that can arise from the continued pandemic and rising inflation….is this a good thing or a bad thing? Well, it’s a good thing, as history suggests that after a gain of at least 20%, returns for the S&P are generally muted, but still in black. In the years after a HUGE run, the index seems to close out with an average rise of 7.7%. Now, is that below the average? Yes…but it’s still a win! And even though it’s a SMALLER win, it should be looked at as a good sign. What To Expect For 2022 However, this is what history tells us… The year after a big rally tends to be followed by a positive finish for the index in the subsequent calendar year over 70% of the time. That’s a pretty good number for ANYTHING on Wall Street. Even more, these gains have occurred each and every one of the previous nine times that the S&P 500 has posted a 20% rise or better. So, this could spell good things for investors… Of course, this is something that we need to take with a grain of salt. Past performance doesn’t always predict future results, and with the specter of the pandemic and inflation floating above us, there’s no telling WHAT could happen. That being said, I think it’s going to be good news…at least in the short term. We’ll have to see if and when Jerome Powell and the Federal Reserve decide to start raising rates—and, more importantly, how OFTEN they decide to do it. Until then, I think we can relax a little bit and try to grab as much profit as possible before the bear market we all hear growling off in the distance makes its way to our economy. Strike while the iron is hot, as the old adage goes. Don’t let this profit window pass you by. --------------------------------------------------------------- [Turn Your Images On] [Keep An Eye On These 3 Stocks This Year]( Shawn Ambrosino Have you noticed how many “experts” there are out there? Every year, there seem to be more and more people coming out of the woodwork claiming expertise in one area or another—even though few of them have much in the way of accolades. I don’t consider myself to be an “expert.” I don’t like the term for myself. It just sounds like bragging about something I haven’t earned, so I would never call myself an “expert”. But I’ll call other people experts, for sure. People like Adam O’Dell and Charles Sizemore, they’re experts. They not only have the education and accolades, but they also have the experience that puts them in the upper echelon of stock and financial experts. Me? I’m just a guy that has spent years in the financial world and learned a lot about a lot of things…but I wouldn’t dare call myself an expert. (Of course, those following my [crypto journey series]( know that I’m doing my best to become one). [Turn Your Images On] Now, since I’m not an expert, I seek out the advice of those that are, and I’ve often found them to be the best resources to figure out what works—and, more importantly, what doesn’t Who’s Going To Have A Big 2022? Since we’re in the beginning of a new year, now is the time when a lot of those people start putting out their predictions for the year, not just about Wall Street in general, but also about which specific stocks have the potential to have a big year. I’ve gone to countless websites, read countless articles, and watched countless videos from stock experts and gurus to see which stocks they consider to be at the head of the class. But what I’ve found is that if you read ten different articles, you’ll get ten different lists. There’s not a lot of conformity of thought among stock experts most times, which strikes me as weird. You’d think that people analyzing the same markets and using the same resources would draw similar conclusions…but apparently, that’s rarely how this goes. There isn’t as much crossover as you’d think. However, over the past few days of researching, I’ve found that there are three stocks that DID pop up more on more than one list. Those three stocks were: Tesla (TSLA), Google (GOOG), and West Pharmaceutical Services (WST). Since I talked about Tesla yesterday, we’re going to leave that one alone for now. If you want a little insight into the company, you can read that article HERE. But, let’s talk about Google. Google is one of those companies that you really can’t lose with. Earnings for the company have grown by an average of 123% over the past three quarters, and earnings per share for full-year 2021 surged 105%, with an already 5% bump in 2022. That’s GREAT! But what does the Green Zone Fortunes ratings system say? Nothin’ at all. Google’s too big of a stock to be considered for the GZF ratings system—but as I said, it’s a stock you really can’t lose with. However, it is pricey, which is why a lot of people have taken to using online brokers like Robinhood to buy fractions of stocks to own part of this juggernaut. What The GZF Ratings System Has To Say That being said, West Pharmaceutical Services (WST) is a much different story. While this company is considered a part of the pharmaceutical industry, it’s not a pharmaceutical company. Instead, it’s a leader in medicine containment and delivery products, and the vials, syringes and other products it manufactures help customers deliver drug products to patients—and in the era of COVID-19, this is a very important job. WST’s EPS growth has come in at an average of 67% over the past three quarters, which is great… But what’s even more interesting to me is the fact that a bunch of notable funds, including Baron Asset Retail Fund and the T. Rowe Price New Horizons Fund, own WST stock themselves. Even better than this is the Green Zone score! [Turn Your Images On] [(Click here to view larger image.)]( This may be why this relatively unknown stock is finding itself mentioned in the same breath as Tesla, Google, Microsoft (MSFT), and others. So, there you have it: the stocks that experts around Wall Street say will have a good 2022. Will those predictions bear fruit? Time will tell. Just keep checking the GZF rating system to find out if these stocks are headed north or south. That’s how you’ll REALLY know who’s having a good year. And that’s also how you’ll know which experts aren’t as good as they thought they were. --------------------------------------------------------------- [Turn Your Images On] ["Liquor Gets You There Quicker": Liquor Gains On Beer Market Share Lead]( Ryan James The American business world has several legendary rivals. Coke vs Pepsi, McDonald's vs Burger King, and Ford vs General Motors spring to mind immediately, but there are countless others. However, one of the oldest and bitterest rivalries has gone unnoticed for many years…but that’s about to change. Enter the legendary conflict of liquor vs. beer. That’s right, the liquor and beer industries have been at each other’s throats since the beginning of this great republic...and now that battle is going public. Please Drink And Invest Responsibly Since the 1600s, when the first brewery was built in America, beer has been the predominant alcoholic beverage of choice. However, those days appear to be coming to an end. Liquor is quickly catching up to beer and is within striking distance of overtaking it for largest market share in the alcohol-producing industry. Or, as they say, “liquor gets you there quicker.” (See what I did there?) According to the [Wall Street Journal,]( spirits’ share of the American alcohol market increased from 28% in 1999 to 39% in 2020. Beer’s market share decreased to 44% in 2020, from 56% in 1999. Adding insult to injury for beer, the Beer Institute estimates that drinkers choose beer just under half the time compared to 60.8% of the time in the 1990s. And beer is less popular with drinkers in their early years of drinking (assuming that they didn’t drink underage…which no one here has ever done, right?) Beer is no longer as hip and cool with the kiddos these days, according to Anheuser-Busch InBev SA. Among 21-to-27- year-olds, just 43% of alcohol consumed was beer, down from 65% in 2006. [Turn Your Images On] [Per capita, beer consumption in the U.S.]( fell to 73.4 liters last year, from 80.2 liters in 2010, and 83. 2 liters in 2020. And last year, 39% of U.S. drinkers said beer was the alcoholic drink they drank the most, down from 46% in 2001. Why The Hate For Beer? Okay, okay, I know I’ve been a little rough on the beer industry so far. But considering the competitive advantage they have had over liquor—some would say unfairly—they kinda deserve it. Liquor has been heavily regulated compared to beer and manufacturers/distributors have had to pay an insane amount in taxes for decades. All the while, beer manufacturers have sat back and laughed while hard liquor took a beating. [Turn Your Images On] However, states such as Michigan and Nebraska have changed this and cut taxes on liquor. States are also allowing to-go cocktails to be purchased and pre-mixed cocktails are gaining in popularity as well. The kids these days are more health-conscious, and most don’t want to end up with a Homer Simpson beer gut after one too many cans of Duff. Hence the craze for vodka and tequila sodas. Pre-mixed cocktails have become trendy as well. [Turn Your Images On] American whiskey sales rose 8.2% last year, while cognac grew 21%, and tequila and mezcal combined increased 17%, according to [DISCUS data.]( Americans increased their alcohol consumption big time during the pandemic, and with many bars and other entertainment events closed, they had more disposable income to dedicate to higher-end spirits. Spirits costing above $40 accounted for 40% of U.S. spirits industry growth last year. The booze industry overall benefited from the pandemic-induced lockdowns, which kept [Americans home to drink their sorrows away](. An April 2020 survey of 13,000 professionals conducted on the networking app Fishbowl found that 42% of respondents admitted that they were drinking during work at one time or another. A more recent survey found that 45% of remote workers have a drink during the workday, and 40% admit to shutting down early for happy hour. Also, Americans overall are drinking more since the beginning of the pandemic. According to a study in the journal JAMA Network Open, Americans are drinking 14% more than they were pre-pandemic. So, it appears that beer’s best days are behind it, and liquor is on the rise. Time will tell if this trend continues. But regardless of your alcoholic drink of choice, either market has potential for profit. So cheers to many happy investing returns ahead! --------------------------------------------------------------- For more quality content like this, and to learn more about the Money Moves team, visit us at [( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. 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