Market Analysis & Stock Market Picks

By: SERGE BRONSTEIN

Principal, 17Palms Capital

www.17palms.com

 

The stock and real estate market have had unprecedented gains since bottoming out in 2009-2012. Frankly, I did not expect this rally to last this long, however, it has proven me and countless other analysts wrong. Back in 2016, I thought to myself: surely, this has to be the last year of the rally and in 2017, the prices would take a dip, but alas, it hasn’t happened and the housing prices have continued to climb. I also thought that Trump coming to power would cause a stock market/housing dip, but that hasn’t happened either. As far as the stock market, tech stocks like Tesla, Alphabet and Apple have continued their astonishing success. Tesla’s stock, which our public equity fund holds, has done exceptionally well beyond my wildest expectations.

STOCK MARKET PICKS

  • TESLA (TSLA) [HOLD] – despite a high probability of Tesla having a short term dip, in the long term, this stock continues to be a very good bet.
  • ONEOK (OKE) [BUY] – As propane prices surged, ONEOK benefited tremendously from this. The company is in the process of a $9.3B merger with ONEOK Partners and is poised to take full advantage of extracting gas from the Bakken region, which lies over North Dakota and Canadian territories.
  • Abbot Laboratories (ABT) [BUY] – Abbot manufactures a variety of pharmaceutical products and is specifically active in the eye care industry. I believe that, in general, the pharma sector is a great sector to be in because it hasn’t suffered the outsourcing fate of other sectors like electronics and continues to have a strong manufacturing base in the West. I believe Abbot is a safe long bet that will continue to gain value.