"Well, I've spent a lifetime lookin' for you;
singles bars and good time lovers were never true.
Playin' a fools game hopin' to win;
and tellin' those sweet lies and losin' again.
I was lookin' for love in all the wrong places,
Lookin' for love in too many faces,
searchin' their eyes and lookin' for traces
of what I'm dreamin' of."
-- Johnny Lee, Looking For Love
Here are some laggard ideas that may play "ketchup" in the weeks ahead, and that I have buying in recent days:
At the head of my laggard list are large money center banks. Net interest margins are bottoming, loan loss provisions are topping and non interest (fee) business is prospering. Valuations are at exceptionally attractive levels.
For intermediate-term investors, banks are the most attractive sector extant from my perch. I recently purchased Financial Select Sector SPDR Fund (XLF) on top of my large bank holdings.
The rich, with sound financial resources, are getting richer and smaller businesses are being tested. 2021 will likely exhibit a bull market in mergers and acquisitions -- something no one is looking for. Large mergers or equals are also expected. My favorites are Goldman Sachs (GS) and Morgan Stanley (MS) -- the two most important bankers extant.
Though not the most exciting sector (low beta!), home cookin' will continue to make market-share inroads from going out to restaurants for years to come. Smucker (SJM) , Kraft Heinz (KHC) and TreeHouse (THS) are my picks.
I reestablished a large gold position because of a combination of unabated and unprecedented monetary and fiscal policies that should deliver a strong bid for gold and other precious metals. SPDR Gold Shares (GLD) has retreated in price and I am back in, this time for good!
As we move closer to a vaccine and therapeutics, Disney's (DIS) shares may be posed to rip higher over the next few months. And it could happen quickly!
God bless the day I discover...
(This commentary originally appeared on Real Money Pro on October 9. Click here to learn about this dynamic market information service for active traders and to receive Doug Kass's Daily Diary and columns from Paul Price, Bret Jensen and others.)