Continue to Stick with Safe Stocks as Inflation Remains High
While investors were happy to see the rate of annual inflation start to slow, inflation is still unacceptably high. That will continue to keep consumers on the defensive. They may cut their spending in some areas to afford the higher prices elsewhere. That could bode well for low-cost producers for some time. Most companies offering inexpensive products can usually raise prices to counter inflation, even if it may also result in some lower sales. One company that missed on sales but is ...
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Stack Shares of Companies that Build During Bear Markets
During bear markets, retail investors get fearful. But the wealthy and institutional investors know it’s time to buy – even if it may be months or years for a buy to pay off. With the market down and the economy moving into reverse as inflation takes a bite, valuations in many sectors are compelling enough to entice new investments and merger activities now. Those who follow those trends could fare well in the future. While there are plenty of examples in the ...
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Pick Up Slowing Companies While Markets Are Fearful
The stock market is forward looking. The selloff this year started well before companies started to show a slowdown in earnings. Now that this slowdown is being reported, however, stocks may start moving higher once again before earnings then trend higher. Traders aware of this trend can take advantage today by buying shares of great companies warning on earnings now, even though they may be poised for strong growth later. One such example is Palantir Technologies (PLTR). The data analytics company lowered ...
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The Economy Is Slowing, But Not Ending – Grab Winners for the Rebound Now
Investors are often prone to taking a current trend and extrapolating it out indefinitely. That means in a bull market, traders get overly aggressive. But in a bear market, traders look at the current trend and get overly pessimistic. We’re seeing signs of an economic slowdown. But that slowdown is with the goal of getting inflation out of the economy. We still have a strong jobs market and consumer strength. That may lower, but it’s not going to end. That means that ...
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The Rich Get Richer… So Invest with Them!
The wealthy are able to grow their wealth because they look for ways to invest while markets are down and other investors are in a panic. But they leave plenty of clues as to what they’re buying. Astute investors can follow along for big profits as markets rebound. One of the hardest-hit sectors is cryptocurrencies. Yet wealthy investors are continuing to invest in the space, either directly with cryptocurrencies or in crypto-related projects. One big announcement is BlackRock (BLK) partnering with Coinbase ...
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Stay on the Offense with a Defensive Market Play Now
The stock market has quickly retraced nearly half of its recent losses over the past few months. While some might see that as the start of a new bull market, others see the pattern of a bear market rally playing out. To trade these kinds of markets, investors can focus on dividend paying stocks, or on stocks that operate in defensive industries that hold up even when the economy remains slow. In this current economy, auto parts suppliers and retailers have held ...
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Uncertain Post-Pandemic Trends Are Creating Buying Opportunities
Investors always have to contend with uncertainty. And while the world has changed thanks to the pandemic, it’s clear that some trends are heading back to pre-pandemic ways. One such way is with travel. Both air travel numbers and other data indicate that consumers still want to travel, even with the risks involved. Nevertheless, short-term economic fears are now potentially weighing on that recovery. But such fears often prove unfounded in time. For now, that may be creating a buying opportunity. One ...
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This Cyclical Market Will Come Roaring Back with the Rest of the Economy
Some companies are slow and steady, like utility and telecom companies. But many, if not most, are cyclical. They tend to move higher with the economy, and lower when the economy slows. That can include everything from cars to entertainment services. It can also include many business service companies as well. One of the first things a company will cut back on during a slowdown is advertising. Over the long term, that may cost market share and customers. One company seeing a ...
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