Bank of America just released a report that matches almost word for word what I’ve been telling you folks for months… And it even gave away some great stock ideas for Q1 2022 that I couldn’t agree with more.
BofA’s ideas are based on a macro stance that doesn’t depart too far from conventional concepts.
The bank’s year-end 2022 target for the S&P 500 is basically flat, or about 4% lower than it is now. And drivers for its outlook include things like a higher discount rate, rising capital expenditures (capex), and the end of the “equity shrinkage” bull case.
But volatility will also be high…
So while it brings potential opportunity along with it, it’s still important for traders like us to be extra choosy with our stock ideas for Q1 2022.
2 Huge Stock Ideas for Q1 2022
Bank of America Corp. (NYSE: BAC) went on to say its strategy team is bullish on capex, cautious on consumption, and recommends targeting companies with strong free cash flow and inflation-proof yields.
So it shouldn’t be any surprise that one of its stock ideas for Q1 2020 that I agree with is Occidental Petroleum Corp. (NYSE: OXY).
BofA sees a 51% upside and has a $47 price target for OXY.
And despite a hangover from the debt-fueled acquisition of Anadarko Petroleum Crop (NYSE: APC), its free cash flow has allowed the company to reduce its level of debt with hopes to reset a competitive dividend.
In other words, returning cash to its shareholders has been one of OXY’s missing links!
So BofA is bullish on OXY, and on a technical basis, it’s one of my favorite energy stocks of all time.
That’s because energy stocks rise when interest rates go higher.
Check out my short video below to get the next stock idea for Q1 2020 on this list…
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P.S. Is January the best month to trade? Joy of the Trade Head Trader Jeff Zananiri sure thinks so!
That’s why Jeff put together an educational class to teach everyone why he loves a special strategy in particular…
Last January, this exact strategy pulled a fat 210% winner from the market… And Jeff says there’s no doubt in his mind this is the top trading strategy for the first month of the year.
So it’s extremely important we check out his No. 1 trading strategy for January…