Use Market Pullbacks to Buy Quality at a Reasonable Price
After its 10th longest winning streak in history, the stock market has finally pulled back. The S&P 500 sank to the 50-day moving average, a sign that the uptrend may be over. However, the market often has small pullbacks of this nature. These pullbacks cause investors to unwind leveraged positions, take profits, and look for new buying opportunities. Pullbacks are healthy, and typically happen a few times per year. With the recent pullback occurring at the start of earnings season, there may ...
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Buy the Earnings, Not the Uncertainty
Markets hate uncertainty. An increase in uncertainty is a nearly guaranteed way to ensure that a company’s shares decline. Big uncertainties about the economy or geopolitical events can rattle the markets. The reverse is also true. Investors pay up for certainty. That’s a premium that investors can avoid by buying great companies when they’re still contending with uncertainty. One way to avoid uncertainty is to look at facts of a company that are certain, starting with its earnings. In particular, the trend ...
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“Higher For Longer” Interest Rates Mean Choose Carefully
It’s always a stock picker’s market. Today, with the market slowing down after a massive rally, that’s more important than ever. And the latest earnings season shows that big banks can be profitable when interest rates rise, but there can be downsides too. That’s why it’s crucial that investors carefully look for winners that can succeed with today’s high interest rates. And that they’re structured to fare well when interest rates do start to decline later in the year. While interest rates ...
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A Simple Way to Play the 2024 Crypto Rally
Cryptocurrencies have already had a great start to the year. But that rally isn’t over yet. Bitcoin is just days away from its halving, when the reward for mining the crypto is cut in half. Each of the prior halving events have seen a big price rally in the following months. Today, investors have plenty of ways to play this trend, from bitcoin and altcoins to bitcoin ETFs. But a big winner here may be the crypto exchanges themselves. These companies performed ...
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This Recession-Resistant Business Still Offers Big Upside Now
With the overall stock market slowing, investors should look to take profits in areas that have had large moves higher. And the proceeds should move to stocks still trending higher today. Typically, food and beverage companies are recession-resistant. But changing consumer tastes and higher food costs have largely weighed on this sector. One niche of this space, however, looks unaffected, and could continue to keep moving higher. The space is the spirits industry. Alcohol sales have remained robust, and beer sales are ...
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Niche Markets Can Lead to Great Returns Over Time
Companies exist in a competitive landscape. An idea that’s highly profitable tends to attract competition. But there’s also so much that the market can bear. That’s why new technologies tend to attract a number of startups that consolidate over time. The end result can be a few industries where just one company has a strong niche over that of competitors. That company tends to make good returns, but also has the market dominance to ward off new competitors. One such company is ...
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The Best Stock Strategy for “Higher For Longer”
Interest rates are likely to stay at their current level through the summer. That’s based on the latest economic data, showing inflation remains stubbornly high. That means investors looking for the best returns may not find it in growth stocks in the next few months. Until interest rates start to move lower, investors will likely see relatively better returns in more defensive stocks. These stocks tend to offer lower volatility, and tend to pay above-average levels of income. Amid defensive stocks, utility ...
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The Ultimate Reshoring Stock Could Be Ready for Its Next Swing Higher
The past few weeks have seen a market slowdown. Investors aren’t ready to throw in the towel on stocks right now, especially if interest rates may be on track to trend lower later in the year. That suggests that markets may be correcting from overbought levels by simply heading sideways over the next few weeks rather than crashing. And buying the top stocks during this period could position investors for the market’s next leg higher. That’s particularly true with semiconductor stocks. They’ve ...
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