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 (COIN) to expand crypto trading services to institutional clients.
Among the myriad plays here, BlackRock may be the most interesting. The asset manager has more than $1 trillion under management, and will profit from any institutional adoption.
Action to take: BlackRock shares look attractive for long-term investors here, with shares still down 22 percent over the past year.
Plus, the stock pays a 2.9 percent dividend yield at current prices, and the company has a history of raising its dividend payout in time.
For traders, the January 2023 $80 calls, last going for about $16.60, could deliver mid-to-high double-digit gains on a continued rally higher from here in the coming months.
Traders may want to wait for a down day in the stock before making a call option trade.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.