Our Proffe’s Trend Portfolio stock portfolio only has 10 stocks in it, but it was built for the specific purpose of finding the best stocks in the market using our Trendsetter Strategy and using these stocks as the long-term growth engine of our hybrid portfolio.
We run our Trendsetter numbers weekly, and we have six of the Mag 7 in our 10-stock portfolio at this point.
Why?
Not only are they a diverse group of stocks that dominate their sectors (our main factor in our MegaTrend stocks), but they are still continually innovating.
They’re swimming in large pools of cash, with high margin products fueling that continued cash inflow.
This is why you hear about these companies spending on new nuclear power plants and wind farms or new chip/GPU purchases like most of us buy gasoline.
Their piles of cash have been building up for many years. And now they’re deploying much of it to build out their next gen computing and mobility dreams.
Interest rates are also tamer than they were a year or two ago, so that also means this is money to borrow against, which leverages their ability to spend.
Certainly, there are other sectors that are worth attention, and that’s why our hybrid approach to our MegaTrends pays off. Instead of buying a bunch of second-tier winners for aggressive growth – regardless of their Trendsetter scores – we only settle for the best.
So, we use our MegaTrends and find the best stocks for long-term growth. In the current unique situation, AI is dominating the MegaTrends.
We use our long-term options strategy to find winners in alternative MegaTrends or special situation picks.
If the stocks are the engine of performance, the options are the turbocharger. However, we’re using options in a very unique way to most options products. We use long-dated options from 12-18 months out that are in or at the money.
This gives us the ability to leverage our exposure on the best stocks in the markets today. Of course, we’re not perfect, but even with some losses, the winners are huge.
Long story short: Don’t give up on the Mag 7, particularly not Alphabet (GOOG), NVIDIA (NVDA), and Apple (AAPL).
