Despite the fact that the majority of the U.S. is reopening and investors are rejoicing at the money flow, COVID-19 is still affecting the flow of supply, which is often unable to meet the demand for consumer products.
Shortages in the supply chain in 2021 have been popping up more and more as people emerge from their cocoons of self-isolation.
And it’s not looking pretty for the economy…
Joy of the Trade’s Jeff Zananiri is a frugal type of guy, so when he went grocery shopping he was floored with what he saw. Some brands of chicken wings have risen to $3.16 a pound. Boneless chicken breasts have risen 236% since the fall (now $2.25 per pound), and chicken tenders have risen to $2.43 — a 77% spike.
It’s ludacris. And we’re not talking about the rapper…
But after talking to Jeff, we realized that the supply chain shortages in 2021 are also creating a ton of buying opportunities for investors in this market.
Traders just need to start looking at the right names to profit this summer.
We all assume the world was not prepared for the global meltdown we witnessed in 2020. Our supply chain for most goods went from having five levels and layers deep of operations… to one.
For example, let’s say we make beer and only get our hops from one company. If that company doesn’t have enough supply, then we can go to four other companies to get what we need. Now we only have one company to go to, which causes an extreme drop in the production of our beer.
When you put that mindset on a global scale, the reality of things becomes much scarier…
The international supply chain has been heavily affected as well, and it’s one of the reasons behind the shortages we’re seeing in America.
Processing chickens, for example, has to be one of the most absurd things in the world. Chickens are grown in the U.S., shipped to China to get butchered (since it’s cheaper) and then packaged to be shipped back to the U.S.
That process is broken right now, and it’s the reason why we’re looking at Tyson Foods Inc. (NYSE: TSN) — the second largest processor of chicken, beef and pork in the U.S. — as our first stock recommendation.
And as the worst chlorine shortage ever in America is set to ruin the summer pool season for many, costing up to 800,000 people their jobs, I’ve become increasingly bullish on these stocks.
Check out our short video below to learn more about the supply chain shortages in 2021, and see which stocks are set to profit from it.
We also discussed how to get four trades a week using Jeff’s Burn Notice strategy, the most important day of the week for all cryptocurrencies, and whether or not we’re already in the next housing bubble.
Be sure to share your thoughts in the comments section below.
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P.S. From 1993 to 2021, traders would have lost 10% of their money buying and holding the S&P 500 during the day…
Yet if they’d bought at the close and sold again right at the open, they could’ve seen an 812% increase on their investments.
Where did all the gains come from?
And one former $700 million hedge fund trader just revealed how he’s exploiting these overnight moves on a handful of stocks every single day.