Federal Reserve Chairman Jerome Powell is just as lost as the next guy when it comes to assessing the outlook for the Iran war.
You see, it’s unclear what the economic effects of the Strait of Hormuz’s closure will be going forward. We could see a huge spike in energy and fertilizer prices… or nothing at all.
Following the Fed’s latest meeting yesterday, he admitted as much…
“The thing I really want to emphasize is that nobody knows. The economic effects could be bigger, they could be smaller, they could be much smaller or much bigger. We just don’t know.”
On some level, I can respect someone with the maturity and humility to admit when he’s in over his head. Unfortunately, this particular person is in charge of managing the world’s most powerful central bank.
The financial system’s stability depends on him at least knowing enough to bluff his way through. Instead, we got a shrug.
Wall Street took that about as well as you might expect. The S&P 500 Index closed near its lows for the day… and for 2026.
In Powell’s defense, there are a lot of unknowns right now. And anyone who tells you they know exactly how the war will end and what the aftershocks might be is either delusional or lying to you… or both.
If your investment strategy depends on connecting those dots, that’s not a game you can win. You and I have no edge there. We’re not going to have better information or better insights than CIA analysts or military officers.
That’s why I focus on durable, long-term mega trends and – most importantly – why I follow a system. I can invest confidently knowing that my buys and sells are based on decades of proven research… not on luck or developments on the battlefield half a world away.
Today is Thursday, and you know what that means. We’ll be looking at stocks that are newly rated “Bullish” on my Green Zone Power Ratings system.
While uncertain market environments like today’s are difficult to sit through, they also create new trading opportunities.
So, let’s take a look at what my system is saying this week.
S&P 500 New Bulls
I ran my usual screen for S&P 500 companies that popped up as “Bullish” this week, and this is what I came up with:
As I mentioned last week, I’ve noticed a pattern of brick-and-mortar retail stocks registering as “Bullish.”
That trend applies to discount retailers Dollar Tree (DLTR) and Walmart (WMT) as well.
Dollar Tree rates as “Strong Bullish” and sports “Bullish” factor ratings on its momentum, quality and volatility factors. Walmart also rates exceptionally well on those same factors.
Interestingly, Delta Air Lines (DAL) squeezed onto the list as well. Delta has managed to navigate the “K-shaped” economy better than virtually all its peers by focusing on higher-income pleasure and business travelers.
DAL shares initially sold off sharply once the bombs started dropping in Iran, but they quickly bounced back and have been trending higher for the past week.
New Bulls Outside the S&P 500
Let’s cast the net a little wider and look at the newly “Bullish” stocks outside of the S&P 500.
I ran a screen for the top 20 stocks with the largest score increases over the past month.
As you can see, a few more brick-and-mortar retail names are popping up here as well.
Burlington Stores (BURL) made the cut, as did Academy Sports & Outdoors (ASO) and niche urban retailer Citi Trends (CTRN).
Despite remaining the worst-performing sector in the S&P 500 this year, financials are well represented again this week, too.
So while investors are concerned that weakness in the private credit space could escalate, you can still find ways to profit in this space… as evidenced by Stock Yard Bancorp (SYBT), Beacon Financial (BBT), Standard Bank Group (SGBLY) and First Horizon Corp (FHN) all recently crossing the “Bullish” threshold.
Moving on, Hong Kong-based conglomerate Swire Pacific (SWRBY) is an interesting addition to this week’s list.
Swire is made up of four core divisions. Its property arm, anchored by an 82% stake in Swire Properties, is its largest profit driver, developing and managing premier commercial and retail assets across Greater China.
The company’s beverages division, Swire Coca-Cola, is one of the largest Coca-Cola bottlers in mainland China and also operates across Hong Kong, Taiwan and Southeast Asia.
Swire’s aviation division encompasses a 45% stake in international airline Cathay Pacific and the HAECO aircraft engineering group. Plus, the company has a smaller trading and industrial division that covers apparel, automotive, bakeries and sugar.
All in all, Swire offers a quirky, eclectic collection of businesses a little reminiscent of Warren Buffett’s Berkshire Hathaway (BRK-B).
So if you’re looking for exposure to the economies of China, Hong Kong and Taiwan, Swire is worth a look.
To good profits,
Adam O’Dell
Editor, What My System Says Today
