PSX: January 25, 2021

The Dow is down almost 400 points. I wonder why? The ten-year Treasury is at 1.04%, down five basis points. I do know that more and more stories are coming out that America is now closed for business. China is now the favorite country in which large companies are investing. Perhaps that's one of the reasons the Dow is now down almost 400 points. After being up as much as  $5.00/share, AAPL has now turned negative. But I digress. 

Following the story on twitter and the volatility of the stock market today suggests the SEC has a huge problem. The NFL had its problem: kneeling. The NBA had its problem: BLM. Now, the SEC has its problem: Robinhood and Reddit traders which appear to be playing outside the sidelines. A video replay should show sneakers on the chalk.

A heavy federal tax on all "trades," but particularly on options trading, would help put a stop to all this. Until then, hang on. Fasten your seat belts.

I'm staying away from energy stocks when it comes to investing. I am starting no new positions in energy. I sold most of my energy positions this past year and now have only a few "legacy" positions that I will never sell. They will go to the grandchildren. To the best of my knowledge I do not own shares in any pure-place Bakken oil company. I think I still hold EOG but haven't checked in a long time. I generally only check when I am thinking about buying or selling something. Otherwise, why would I care?

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. 

However, tracking energy companies at investment sites provides some insight for me with regard to where the oil and gas industry is headed. 

So, this is not an endorsement one way or the other (see disclaimer), it's simply something of interest and something to do while waiting for Sophia to come over for "school." 

By the way, remember when we were all four or five or six or seven years old and we all played "school" at home with our younger sibs? LOL. Now we're doing it for real. Who knew?

From SeekingAlpha and Mike Fitzsimmons: Phllips 66 -- your #1 reopening energy stock pick.

Summary:

• One year ago today, PSX was trading at over $100/share and the outlook for dividend growth was excellent.
• Then came the pandemic, the resultant drastic demand destruction for refined products like gasoline and jet-fuel. That drastically destructed PSX's stock price too.
• Friday, PSX closed at $72.55. The $3.60/share annual dividend equates to a very attractive 4.9% yield in a near zero-rate environment.
• Certainly, there are still some serious pandemic risks and challenges, but I will make the case that now is the time to buy Phillips 66.
• I predict PSX will pop strongly the day JNJ announces it has received an EUA for its one-shot COVID-19 vaccine and can ramp up to 100 million doses by March.

As a reminder:

The market:

• legacy industries:
• value (JNJ):
• growth (QDEL)
• millennial industries:
• hyper-growth (AMZN)
• ludicrous (TSLA)
• beyond ludicrous (Bitcoin)