Rand & Lenin

“Seems pretty clear to me,” says a reader, disagreeing with a contributor last week who said the endgame of socialism is NOT communism.

Our reader continues, “One of my favorite authors, Ayn Rand, said it very clearly: ‘There is no difference between communism and socialism, except in the means of achieving the same ultimate end: communism proposes to enslave men by force, socialism — by vote.

“‘It is merely the difference between murder and suicide.’

“Here’s another that gets right to the point,” says our reader, “from none other than Vladimir Lenin: ‘The goal of socialism is communism.’”

Bingo. Finally, a reader says…

“I heard years ago all socialists want to be communists but, for some reason, can’t or won’t KILL enough people to get there.”

More of your opinions tomorrow (ahem, Super Tuesday).

Your Rundown for Monday, Mar. 2, 2020

Two Tech Giants (Plus One Energy)

Next up, a reader communicates what every investor is thinking this morning: “Is this a real recession or a buying opportunity?”

First, let’s tackle the first part of our reader’s question — a real recession.

Short answer? It’s too soon to tell. A recession takes a few months to shake out and signifies more than a stock market rout. The GDP, employment, industrial production and retail sales would all be tumbling too.

As for the second part of our reader’s question — buying opportunity?

“This is when you go shopping,” says Bill Baruch of Blue Line Capital who says this is no time to panic. Yes, he concedes, the Dow, in particular, was a bloodbath last week, closing down 12% — with all 30 stocks that make up the index in the red.

So which stocks does Baruch believe you should snap up at a discount? Two tech giants — Microsoft and Apple — and energy giant Chevron.

“Let’s start with Microsoft. It’s still out above the 200-day moving average” he says. “I want to be buying Microsoft into that.”

By the way, the 200-day MA is a fairly good indicator of the long-term trajectory of a stock. Consistently above that line, means the stock is on an upward trend. And, according to Baruch, that goes for Apple too.

As for Chevron, Baruch says: “I think, if you look and even buy here down at 80 bucks in Chevron, somewhere in this 5% range from where we are right now, you’re going to like it when you look six months to a year out.”

So a market correction? Sure. Recession? Too soon to tell… but there’s no time like the present to snap up some bargain stocks.

Market Rundown for Monday, Mar. 2, 2020

S&P 500 futures are up 8 points to 2,959.

Oil’s up $1.26 per barrel to $46.02.

Gold’s added $30.00 per ounce to $1,596.70.

Bitcoin is up 3.3% to $8,838.92.

Have a great day. We’ll talk Wednesday.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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