Update - May 9, 2023

Ready for a 200%+ Winner?

The recession is here. There’s a very good chance that America’s GDP will slip backward during the second quarter. If it happens, it will mark the first of the two straight negative quarters it takes to officially declare a recession.

Washington won’t have the ability to talk its way out of this one. It won’t be able to ignore the numbers.

It raises a question…

Are you prepared for a recession?

If you’ve been keeping up with our ideas, you certainly are.

Take a look at KBR (KBR). I’ve been touting the merits of this international infrastructure giant for a while.

Thanks to a strong earnings report last week, we’re just a few points away from a nice 200% gain on this one.

The numbers in the latest filing were good. Analysts expected a bottom line figure of $0.58 per share… but the company delivered a hefty surprise at $0.69 per share.

The throughline with this company and its success is its involvement in the next generation of energy. This is huge. The sector is not only recession-resistant but also almost certain to get a boost as a slowdown forces stimulative green energy spending from governments around the globe.

KBR is benefiting immensely from growth in the hydrogen and ammonia sectors. Its management team is especially excited about the role BP (BP) is playing in hydrogen. The energy giant recently announced a $30 billion commitment to the space. That’s a big deal considering the company has partnered with KBR on its development work.

Simply put, it means KBR will get paid for project management, engineering and all things technical as BP opens its wallet in a huge way.

It’s already paying off. Some 85% of KBR’s work for the year is already under contract – a spectacular figure after just the first quarter of 2023.

And don’t overlook the government side of the company’s revenue stream. It’s hugely important.

KBR does a lot of work for the military. The company’s readiness and sustainment businesses have been quite busy as the situation in Ukraine has evolved. One unique aspect that often gets overlooked by analysts is KBR’s defense and intel portfolio, which includes a large business in the military space.

That segment grew by 20% last year.

The bottom line is the company is strong… and recession-proof… and it will benefit as nations around the globe defend themselves against foreign enemies and economic realities.

I expect we’ll be celebrating a 200% win on this one within days.

But it’s far from the only recession-proof stock in our portfolio. We’ve been tracking interest rates and have aptly prepared for all of this.

That’s why we have a stake in Sun Life Financial (SLF).

It could have a very big week.

If you heard any part of Warren Buffett’s annual address to his shareholders over the weekend, you likely heard him mention the recession-resistant nature of insurance stocks. Folks don’t/can’t stop paying their premiums just because money is tight.

That’s especially true with life insurance.

Buffett is preparing for his insurance stocks to gather big momentum over the next six months and help lead his company to more market-beating returns.

I’m convinced Sun Life will be one of the leaders of the pack. Rising rates, steady cash flow and a reliable business model make it a no-brainer in volatile times.

We’ll find out just how valuable the company is on Thursday when it opens its first quarter books and reveals its latest profit figures.

I expect good news… good news that will attract a flock of skittish investors.

If you don’t own shares yet, now is a good time to buy them.

Our portfolio is very strong. It’s solidly beating the market.

But that’s no surprise. Our Modern Asset Portfolio strategy is perfectly designed to keep us ahead of the action.

It’s paying off.