As I discussed in my last installment of My Gut Feeling, you were going to have a golden opportunity to sell vaccine related trades when the first person was administered a COVID injection. That occurred on Monday. And, to no surprise, that coincided with a top in the stock price of Moderna (MRNA), and other associated COVID vaccine plays, including biotech exchange traded funds. This was a classic sell-on-the-news event.
It might seem counterintuitive, but professionals will buy-on-the-rumor and sell-on-the-news. Retail investors will buy-on-the-news. Whereas I was buying the likes of MRNA and Direxion S&P Biotech ETF (LABU) a few weeks ago, I was happy to ring up the register and sell my shares to retail investors on Monday. Could those stocks make new highs in the future? Sure; but why chance it? After a nice run, I am happy putting some gelt in client accounts for the holidays.
Recall that we are in the sweet spot on the calendar for small cap stocks. Hence I put some capital into a trade in the Russell 2000 (RUT).
At this point, the year is for the most part in the books. There may be a Santa Clause Rally but that will only serve to put some cream on top of the returns for this year, particularly in our growth accounts.
Other than some political wrangling in Washington DC as to further stimulus, there is little anticipated news on the horizon before the year ends. The next real potential market moving event will be the two Senate elections in Georgia on January 5, 2021.
If anyone has any last-minute needs, including gifting, distributions, deposits or new account openings, kindly contact me as soon as possible as I plan to lay low the last week of the year.
Sometime next week I will disseminate my annual list of 10 Things. Have a nice weekend.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC was long MPC - although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, (LVAM) an investment advisor representative, specializing in high net worth private wealth management. LVAM is affiliated with Kingswood Wealth Advisors Services, a registered investment advisor. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right-hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
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