Avoid This Sector... There's No Upside Left

You’re receiving this email as part of your subscription to Andrew Zatlin’s Moneyball Daily [Unsubscribe]( [Moneyball Economics] Avoid This Sector… There's No Upside Left Tuesday, February 15, 2022 One of today’s hottest industries is in for a rude awakening! My data proves it. The mainstream media hasn’t figured this out yet. Neither has Wall Street. So today, I’ll tell you what this industry is — so you can be sure to avoid it! [CLICK HERE TO LAUNCH VIDEO OR READ THE FULL TRANSCRIPT BELOW »»]( > ADVERTISEMENT < [The #1 Stock Under $5]( Virginia Stock-Picking Millionaire Says It's not About Diversification! One single stock under $5 — that trades under a secret name — could help you build your retirement. [His details are here.]( For a transcript of this video, see below. This transcript has been lightly edited for length and clarity. Avoid This Sector… There’s No Upside Left Welcome to Moneyball Economics! Last week, we looked at a big trend change in the shipping industry. Basically, the congestion at seaports is finally easing up, and sectors like Automobiles are set to benefit. The thing is, for every winner I’m seeing, there’s a loser to go along with it. In particular, one industry is in for a rude awakening. The mainstream media hasn’t figured this out yet. Neither has Wall Street. So today, I’ll tell you what this industry is — so you can make sure to avoid it! Quarterly Profits Go from $1 Billion… to $50 Billion The industry you need to avoid is Maritime Shipping. In other words, companies that ship cargo overseas. Throughout Covid, this industry has been killing it. Just look at this: This chart shows the quarterly profits earned by maritime shippers. As you can see, historically, they’ve earned about $1 billion in profits a quarter. But look what happened beginning in 2020. In the third quarter of 2021 — yes, you’re seeing that correctly — shippers earned nearly $50 billion in profits! [Zatlin chuckling] As you might imagine, that led their stock prices to soar. For example, the stock of Navios Maritime Partners (NYSE: NMM) climbed 50% during 2021: And the stock of Danaos Corporation (NYSE: DAC) skyrocketed 800%: Wow! So shipping must be the hot new sector, right? We should go ahead and invest here, too! Not so fast… Folks, We’ve Got a Bubble Maritime Shipping is in a bubble… And that bubble is beginning to pop. It’s unsustainable! How do I know? Because I’m looking at the data. Last week, I introduced you to the Baltic Dry Index, which tracks the cost to ship goods around the world: Throughout 2020 and 2021, the cost to ship goods soared. In fact, the Baltic Index climbed nearly 300%. What happened? Simple: supply issues, along with a few untimely events. For example: - In March 2021, the Suez Canal was blocked. 12% of global shipping traffic couldn’t move for an entire week! - A few months later, Covid Delta emerged, shutting major ports in China. - Then, heading into fall 2021, a rush to get products on the shelves in time for the holidays caused prices to climb higher. A surge in demand! It’s a bidding war! But take another look at the Index above. Notice anything? Room to Breathe As we headed into 2022, shipping prices dropped 60% to 70%. The bubble popped! That’s because supply congestion finally started to ease up… And we’re already seeing its impact on the shipping industry. On the west coast, for example, the waiting line at ports has already dropped from 100 ships to 80. And as this congestion gets alleviated, the Baltic Dry Index is returning to normal. So — how does this impact us as investors? > ADVERTISEMENT < [America's Cash Massacre is Here]( Chris Rowe has just published an urgent briefing to share one wildly effective [hyper-hedge strategy]( that could 2x...5x...even 10x your money in 2022. [Here are the details.]( No Upside Left Earlier, I showed you the rise in stock prices for two shipping companies… Some investors think there’s plenty of upside left . But that’s not the case. Heck, even the heads of these companies have acknowledged that the rise in shipping prices was temporary. For example, Lars Jensen, CEO of Danish shipping company Maersk, said that, after congestion eases, “freight rates will come down substantially.” And he’s exactly right. Speaking of Maersk, it just presented its Q4 earnings for 2021. And wouldn’t you know, the results were fantastic — the company reported a 50% jump in revenue last year. But this jump was because shipping rates were up 300% during that time! And now that rates are falling, companies in this sector are in for some disappointing results. Stay Tuned for Specific Plays Bottom line: Maritime companies have been in a bubble. But the bubble has started to burst. Stock prices aren’t reflecting it yet — but they will soon! So in the coming weeks, I’ll share specific ideas about how I’m aiming to profit from this situation. In the meantime, be wary of companies in this sector. Avoid them. Because as shipping congestion eases, they’re going to be the losers. Zatlin out. I’ll talk to you soon. In it to win it, [Andrew Zatlin] Andrew Zatlin Moneyball Economics Copyright 2022 © Moneyball Economics, All rights reserved. You signed up on []( Our mailing address is: Moneyball Economics 201 International Circle Suite 110 Hunt Valley, MD 21030 [Update Subscription Preferences]( | [Unsubscribe from this list]( | [Terms & Privacy]( RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. 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