In a Bear Market, Invest in Sectors That Aren’t Going Away
While the economy is going through one of its periodic pullbacks, smart investors are preparing for the next move higher. That can come from investing in quality companies that lead their industry. Or it can come from investing in growth companies that are now trading at valuations that no longer reflect any growth. Most investors will fare well starting to buy names that offer a mix of the two. One top trend is the rise of data, and storing that data on ...
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Bear Markets Create Great Opportunities to Buy Growth on Sale
Growth stocks were priced for perfection at the end of last year. Now, with stocks in bear market territory, a lot of the froth has come out of many high-growth names. Some of the expected growth has stalled out along with the economy. But for traders looking for long-term opportunities to outperform the market, buying top growth names on sale now could deliver great returns 1-2 years out. That’s especially true for companies announcing new growth initiatives now. One such company is ...
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Pick Up Companies Increasing Market Share Now
When the economy contracts, consumers shift their spending habits. This can result in a number of companies losing market share – while a few gain. That can be seen across a number of industries. Based on the earnings data so far, one prospective place for strong returns going forward could come from discount retailers. These companies have been hit like other stocks right now, but going forward could see strong sales and rising market share. One prospective play here is retailer Ross ...
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Stay Defensive with Recession-Resistant Trades Now
While investors have largely soured on growth stocks, a few sectors are holding up well. Most of them are commodity-based companies, as that space has delivered strong returns this year. Some companies are also holding up well because business tends to be steady, no matter what’s happening in the economy. One of the better possible trades in the coming months could come from companies offering both. Agricultural commodities have been rising as geopolitical tensions and reduced fertilizer production have impacted the global ...
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Look For Companies That Can Succeed in New Growth Endeavors Now
Bear markets offer companies the ability to refocus and retrench. Companies that look toward the future when times are tough can rapidly expand into new growth areas ahead of the next economic swing higher. That can leave them positioned to take advantage of new opportunities that don’t sound appealing when markets are dropping. The housing crash in 2008 led many investors to avoid potential growth stories in the new technology of electric cars or to overlook the development of smartphones and ...
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In a Rising or Falling Economy, Don’t Bet Against Defensive Consumer Plays
Consumer spending makes up the bulk of economic spending – over two-thirds, by most estimates. That means that any change in where and how consumers are spending can lead to a shift of billions of dollars. As retailers report their quarterly earnings, some are seeing consumers head their way amid rising economic uncertainty. Others aren’t faring as well. But a few players could be a standout play at current prices, given the role consumers play in the economy. For instance, Home Depot ...
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Consider This Profitable Media Space as Streaming Stocks Slide
The media space is a lucrative one, and one where just a few companies control the bulk of the industry. However, the past few years has seen many media companies rise and fall as plans have come to fruition to build their own streaming services and compete with each other. While this has been going on, another niche part of the media space has been growing steadily, and even before the pandemic was posting better numbers than the box office. That space ...
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Why This Strong Performing Player Can Continue Higher Now
The past six months have been devastating for growth companies. From the tech space to speculative startups to everything crypto, many of the well-known growth stories of the past year have seen their gains evaporate – and then some. However, the more slow-and-steady companies have been holding up far better now. And some even play to multiple favorable market trends now, which make them likely to continue performing well in the future. That latter category is where Berkshire Hathaway (BRK-B) has been ...
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