Yo Pit Crazies,

I will say one thing about the election: politics can be very divisive and difficult. 

The Republicans didn’t win a whole lot on November 4th. 

Part of that might be the base is a little disillusioned with some of the campaign promises made by the Republican Party that were left hanging.

Here’s a small list:

1. DOGE (Department of Government Efficiency) is silent
2. Inflation coming down (which is happening a bit but healthcare is big issue)
3. Manufacturing coming back not really
4. Solving or fixing the healthcare issues is not happening
5. No foreign entanglements and settling a lot of wars which has mixed success
6.  

At this point, the shutdown has caused a lot of issues because the Republicans just came in and spent. They kept the 2017 tax bill mostly intact and tried to cut some spending, but really they did very little work trying to cut any of the spending levels from 2020 to 2024. I think that really is stuck in the craw of a lot of voters out there.

What became popular? Socialism didn’t hit everywhere, but the Democrats did pretty well across New Jersey, Virginia, and in New York City.

There are times, like right now, where Congress really does not function very well. They spend too much money and they do it poorly. I think a certain percentage of voters are just apathetic and didn’t show up at the polls. This is a sentiment thing. And again, it’s just kind of a downer that Congress can’t solve this problem. Right now I would say there is no end in sight for The Shutdown.

Not a Flash 7 Stock, But Could Be a MAHA Candidate

Part of my whole Flash 7 has always been a contrarian view. Right now, we have poor market sentiment as the backdrop, and Congress can’t do their job because they’re so polarized. When congressmen are gerrymandered into their seats and you can’t get rid of them, we need term limits badly. Clearly there’s no congressman that will start that—maybe one or two.

But the whole idea of my Flash series is contrarian stocks that were once at a much higher price, have come down to earth, and are bouncing back up again or getting ready to. I believe this, and then write on the back of large institutional interest in those names in longer-term options.

B&G Foods Inc.

One stock that was not on my Flash 7 list but one of my students brought up was B&G Foods Inc. (BGS), maker of B&M beans, Clabber Girl baking powder, Crisco, Ortega salsas, Cream of Wheat, and all kinds of brands.

Now, I think what’s been going on over the last four years is politics running into economics. The massive jump in EBT and SNAP benefits post-COVID was the issue. The government plowed a bunch of money in and never took it away. What was a temporary solution to get through the COVID crisis became a permanent food subsidy.

I believe there’s better than fair rationale for the huge jump in food inflation over the last four years because the government pumped an extra $100 billion a year into people buying everything whether they needed it or not. BGS did very well in that period of time but has given back gains.

Over the last year, when RFK Jr. got nominated, all food company stocks went on a long slide. The reason? They have to go back to trying to provide something a little healthier as the FDA starts looking more at all the junk in food.

The whole thought behind my Flash 7 was that a lot of these companies now are working to get the additives out of the food, which I think should start to be a secular boom in the names.

So that’s where we stand right now. BGS is an interesting stock coming out of the woodworks. 

There’ll be more on this shortly but stocks like this are great for Income Style trades.

To Your Trading Success,

AG