"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:
Financials/Banks
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.
Financials/Investment Bankers
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.
Autos
We are experiencing a "U" type recovery in the automobile industry. My favorite is General Motors (GM) , which remains inexpensive because of its wrong headed moved with Nikola (NKLA) .
Packaged Foods
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.
Precious Metals
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!
Entertainment
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...
(Goldman Sachs and Disney are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)
(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.)
