What To Buy Today

Buy the Cloud Czars

If you have money to invest, here’s an obvious truth.

We’re at or near the bottom of a bear market.

Everything is down. Some stuff has been crushed. Some of my stuff has been crushed.

But don’t despair, friend Investor. Bear markets end. Even with the worst of them, the average stock has gotten back to even in just a few years.

If you have taxable income you want to hide, and a taxable investment account, then feel free to dump your garbage. Anything that won’t come good in 3-4 years – take the loss. Dump the SPACs, dump the crypto, dump the stuff that’s losing money faster than it’s growing, or that lacks the cash to wait 2 years for another injection of money.

Now, because I write for Investorplace I’m going to tell you what to buy.

Buy what’s real. Buy what makes money. Buy technology that fights inflation.

Buy the Cloud Czars.

Just 5 companies control the bulk of the cloud data centers (and fiber lines) that now drive the global economy. These are Apple, Microsoft, Amazon, Google, and the artists formerly known as Facebook. No, I’m not going to create some stupid acronym.

They’re all down. But they will come back. Why? Because clouds cut costs. Because these companies own the clouds. Because clouds are built with cash flow (not debt), because cash is king and these guys have cash.

For all the great cloud applications from Adobe to ServiceNow to Netflix, these are the landlords. That’s not going to change. Google is still worth more than 10 times AT&T.  Clouds, where the computing happens, matter more than the wires (or radios) through which the bits flow. How you buy the infrastructure also matters – AT&T has a mountain of debt.

Nothing fights inflation like clouds. Because of clouds, America dominates the global economy. You think gas prices are high here? Try buying it in Euros, or Pounds, or (God forbid) Rubles. A strong dollar also fights inflation. Interest rates are rising, the dollar will stay strong.

Things will turn around. This war will end. China will grow again (maybe with new leadership). We have bigger fish to fry because this globe is heating like an air fryer. We need to get a handle on our environment or we’re all dead. If that happens your investments are worth nothing.