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When we were little kids playing basketball. Sometimes, some of the players may have taken what is colloquially known as a Granny Shot. While they may have endured being the butt of jokes made by their playmates, they might have been onto something. While the indecorous method is ridiculed by many as being the way your Granny would choose to shoot, some impressive research shows that since it requires less coordination, it is a sounder method for some players to use. But no pro would ever use Granny Shots, would they? It’s just for little kids.
This assumption couldn’t be further from the truth. Famed 70’s player Rick Barry has become
We all remember...
Of course, we are taking the valuable metaphor of asking for help and taking a more straightforward method over a harder one to introduce what has become an investing equivalent of The Granny Shot. Our well-known and sought-after Granny Shots List is based on a relatively unique method of picking stocks. Have you ever been interested in a particular and significant trend, like the rising importance of artificial intelligence and automation, but you didn’t have the time or training to correctly identify stocks that will benefit from such a prodigious and seemingly inevitable trend?
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What About The Performance?
We understand there is a lot of marketing material out there for stock lists and folks who will try to sell you advice. We could tout the virtues of our process or try to feed you some confusing jargon to convince you that we’re the best.
However, we’re not going to do that. We are going to introduce the themes used to make our selections and show you the performance of our product—nothing more, nothing less. The rest is up to you. We’re happy to give you a free trial at www.fsinsight.com because we’re so convinced it will alter your investment process for the better that you won’t be able to go on investing without it!
We are constantly monitoring and updating this portfolio which has been a beneficial investing tool for many investors. We have a veteran data science team that is frequently on the lookout for potentially lucrative Granny Shots opportunities. We stress very firmly that past performance NEVER guarantees future performance.
However, given that this portfolio has continued to give positive returns in excess of the market through the most tremendous shock to the market of our lifetimes, we’re pretty confident that these stocks will do well. This is because they benefit from some of the most profound changes affecting our economy and society as well as seasonal and tactical factors that we have analyzed over time.
S&P 500
Granny Shots Allocation
Granny Shots Performance Since Inception
Granny Shots Allocation
S&P 500
Performance period: January 01, 2021 through February 03, 2023
What Tactical and Strategic Themes Guide Our Selections?
HOW DO I GET ACCESS TO THE GRANNY STOCK LIST?
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an ambassador for the Granny Shot, and his son Canyon Barry, who played in college, also used it as well. Even more impressively, Wilt Chamberlain, one of the greatest players in history, was terrible at free throws.
So, for a few seasons, he switched to the ridiculed method to improve his game. Can you guess what happened during Mr. Chamberlain’s brief tenure using this unsightly but effective method? To this day, he has still scored more points than any other player in one game. How was Chamberlain shooting free throws during his famous hundred-point game? Well, underhanded, of course. So, the Granny Shot can be helpful for even the best..
That’s where we come in.
We select a portfolio of stocks that best match three tactical themes and three strategic themes that we believe will fundamentally alter our future. Therefore, we select stocks that are set to benefit from these tactical and strategic themes. Some stocks qualify for most or sometimes even all of the themes. A stock only makes it to the list if it qualifies for at least two themes. Some stocks like AAPL and MSFT have long qualified for multiple themes and have been on the list for a while!
That’s where we come in
We will start with the secular trends that guide our strategic and thematic portfolios. We believe that many people often miss a key driving factor of markets: who exactly they are comprised of. Millennials are the largest generation on Earth. Their peak spending, borrowing, and earning years will soon be upon us. In addition to this,
they will also be inheriting a massive amount of money, in the trillions, from the aging baby boomers. As this gigantic boom in demand occurs in the economy, we think certain companies are particularly poised to achieve superior growth.
We will start with the secular trends that guide our strategic and thematic portfolios. We believe that many people often miss a key driving factor of markets: who exactly they are comprised of. Millennials are the largest generation on Earth. Their peak spending, borrowing, and earning years will soon be upon us. In addition to this, they will also be inheriting a massive amount of money, in the trillions, from the aging baby boomers. As this gigantic boom in demand occurs in the economy, we think certain companies are
particularly poised to achieve superior growth.
When we were little kids playing basketball. Sometimes, some of the players may have taken what is colloquially known as a Granny Shot. While they may have endured being the butt of jokes made by their playmates, they might have been onto something. While the indecorous method is ridiculed by many as being the way your Granny would choose to shoot, some impressive research shows that since it requires less coordination, it is a sounder method for some players to use. But no pro would ever use Granny Shots, would they? It’s just for little kids.
This assumption couldn’t be further from the truth. Famed 70’s player Rick Barry has become an ambassador for the Granny Shot, and his son Canyon Barry, who played in college, also used it as well. Even more impressively, Wilt Chamberlain, one of the greatest players in history, was terrible at free throws.
So, for a few seasons, he switched to the ridiculed method to improve his game. Can you guess what happened during Mr. Chamberlain’s brief tenure using this unsightly but effective method? To this day, he has still scored more points than any other player in one game. How was Chamberlain shooting free throws during his famous hundred-point game? Well, underhanded, of course. So, the Granny Shot can be helpful for even the best..
Of course, we are taking the valuable metaphor of asking for help and taking a more straightforward method over a harder one to introduce what has become an investing equivalent of The Granny Shot. Our well-known and sought-after Granny Shots List is based on a relatively unique method of picking stocks. Have you ever been interested in a particular and significant trend, like the rising importance of artificial intelligence and automation, but you didn’t have the time or training to correctly identify stocks that will benefit from such a prodigious and seemingly inevitable trend?
That’s where we come in.
We select a portfolio of stocks that best match three tactical themes and three strategic themes that we believe will fundamentally alter our future. Therefore, we select stocks that are set to benefit from these tactical and strategic themes. Some stocks qualify for most or sometimes even all of the themes. A stock only makes it to the list if it qualifies for at least two themes. Some stocks like AAPL and MSFT have long qualified for multiple themes and have been on the list for a while!
Global Labor Shortage and Rise Of AI/Automation
Over the past decades, one of the main catalysts for global economic integration was cheap and plentiful labor available to first-world firms in third-world countries. This revolutionized supply chains and lowered the costs of many products; it also may have contributed to staving off high inflation levels. However, this influential trend has recently been reversed. We estimate that by 2028 the global
economy will be short nearly 80 million workers.
Does this mean AI/Automation will replace workers fully? Of course not; however, the labor shortage likely means that companies who have invested in the technology and software to act as a significant force- multiplier to their human capital will have better performance than those who have not.
Over the past decades, one of the main catalysts for global economic integration was cheap and plentiful
labor available to first-world firms in third-world countries. This revolutionized supply chains and lowered the costs of many products; it also may have contributed to staving off high inflation levels. However, this influential trend has recently been reversed. We estimate that by 2028 the global economy will be short nearly 80 million workers.
Does this mean AI/Automation will replace workers fully? Of course not; however, the labor shortage likely
means that companies who have invested in the technology and software to act as a significant force-
multiplier to their human capital will have better performance than those who have not.
Asset Intensity
There are concerns about inflationary pressure building in the economy as supply-chain bottlenecks and an unprecedented monetary policy have led to persistently higher inflation than officials at the US Federal Reserve expected. Many folks are worried about inflation, but many are also getting protection from this potential outcome in the wrong places. You don’t want a TIPS, believe us. What you want is stocks with high asset intensity since hard assets are natural hedges against inflation.
Thus, this strategy’s thrust is going overweight stocks that are ‘asset-heavy instead of ‘labor-intensive’ or flat subscription revenue models. Companies with many assets will benefit from them acting as a natural hedge
against the devaluation of currency. Rising labor costs accompany rising inflation, which disproportionately
hits companies that have a good portion of costs tied up in paying for labor.
There are concerns about inflationary pressure building in the economy as supply-chain bottlenecks and an unprecedented monetary policy have led to persistently higher inflation than officials at the US Federal Reserve expected. Many folks are worried about inflation, but many are also getting protection from this potential outcome in the wrong places. You don’t want a TIPS, believe us. What you want is stocks with high asset intensity since hard assets are natural hedges against inflation.
Thus, this strategy’s thrust is going overweight stocks that are ‘asset-heavy instead of ‘labor-intensive’ or flat subscription revenue models. Companies with many assets will benefit from them acting as a natural hedge against the devaluation of currency. Rising labor costs accompany rising inflation, which disproportionately hits companies that have a good portion of costs tied up in paying for labor.
Style-Tilt: Value/Growth Inflection
One of our tactical portfolios is our ‘style-tilt.’ This is based on the main distinction in investment styles between Value and Growth stocks. It also has two more dimensions; defensive vs. cyclical and quality vs. non-quality. Currently, we believe that Value stocks will lead the market in cyclical sectors.
We have done much work on shifting leadership between value and growth investing strategies and generally find that macroeconomic conditions favor stocks that benefit in a robust recovery. The ‘New Seasonality,’ our next tactical theme, is a major reason.
There are concerns about inflationary pressure building in the economy as supply-chain bottlenecks and an unprecedented monetary policy have led to persistently higher inflation than officials at the US Federal Reserve expected. Many folks are worried about inflation, but many are also getting protection from this potential outcome in the wrong places. You don’t want a TIPS, believe us. What you want is stocks with high asset intensity since hard assets are natural hedges against inflation.
Thus, this strategy’s thrust is going overweight stocks that are ‘asset-heavy instead of ‘labor-intensive’ or flat subscription revenue models. Companies with many assets will benefit from them acting as a natural hedge against the devaluation of currency. Rising labor costs accompany rising inflation, which disproportionately hits companies that have a good portion of costs tied up in paying for labor.
Seasonality: The New Post-COVID-19 Seasonality
Seasonality usually refers to the natural changes that accompany the calendar year. For example, certain goods’ consumption tends to be higher around the holidays. These factors were somewhat more predictable than many unforeseen developments in markets. However, the first coordinated global shutdown of economic activity was so significant that it broke many of these existing seasonal trends.
The New Seasonality that we use to inform this tactical portfolio is the ‘seasonality’ created by COVID-19 that creates winners and losers. We think that after mass-inoculations have occurred, we will see a potentially unprecedented economic boom that will benefit some companies more than others.
Seasonality usually refers to the natural changes that accompany the calendar year. For example, certain goods’ consumption tends to be higher around the holidays. These factors were somewhat more predictable than many unforeseen developments in markets. However, the first coordinated global shutdown of economic activity was so significant that it broke many of these existing seasonal trends. The New Seasonality that we use to inform this tactical portfolio is the ‘seasonality’ created by COVID-19 that creates winners and losers. We think that after mass-inoculations have occurred, we will see a potentially unprecedented economic boom that will benefit some companies more than others.
The Purchasing Managers Index isn’t as complicated as it sounds. It surveys those in businesses responsible for purchasing working capital on their optimism for the future compared to the recent period. If the PMI goes above 50, more managers feel optimistic about future prospects. We have looked throughout history and analyzed the PMI Index and economic activity.
Clearly, when PMI begins trading above 50, companies that benefit from expansive economic cycles tend to do better. The PMI readings have recently indicated that many businesses are expecting a coming boom and economic normalization. Thus, we tilt heavily toward pure cyclicals for this tactical portfolio.
Seasonality usually refers to the natural changes that accompany the calendar year. For example, certain goods’ consumption tends to be higher around the holidays. These factors were somewhat more predictable than many unforeseen developments in markets. However, the first coordinated global shutdown of economic activity was so significant that it broke many of these existing seasonal trends. The New Seasonality that we use to inform this tactical portfolio is the ‘seasonality’ created by COVID-19 that creates winners and losers. We think that after mass-inoculations have occurred, we will see a potentially unprecedented economic boom that will benefit some companies more than others.
PMI Recovery
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