Sometimes the market gets fearful of some sectors. When that happens, prices plummet in a short period of time. However, the market is cyclical. And there will always be a new sector that grabs the market’s fear. As that happens, sectors where the fear is leaving will often see some big players move in to profit from a rebound ahead. And investors can follow along to further profits. The banking sector has quieted down, and many regional banks are trending higher. They’re still well off their highs since before the crisis broke out in March. And now we’re seeing some big money moves ...

Investors don’t like uncertainty. That tends to lead prices lower, which can create a good buying opportunity. Ideally, the time to buy is when uncertainties that represent a major threat to a business start to go fade away. That may not mean an immediate move higher, but it will likely mean the end of a downtrend and an opportunity to beat the market over time. Among company-specific uncertainties, one of the most challenging to contend with is litigation. When a company is able to move past endless litigation, like3M (MMM) just has with its $10.3 billion “forever chemical” settleme...

Investors often follow big trends. And by investing in those trends when they’re out of favor, they stand to make a fortune. That’s especially true when the big trend involves support from the government, whether in the form of tax credits, direct payments, or loans. For instance,Tesla Motors (TSLA) grew in part due to tax incentives for buyers of electric vehicles. That benefit still exists today, giving EV buyers a potential $7,500 advantage over buying a traditional gas vehicle. Other automakers are getting into the game too.Ford Motors (F) is getting a government loan for billion...

One of the biggest trends of the past 15 years has been the growth of apps, particularly smartphone apps. However, investing in that trend has been a challenge. Outside of owning a smartphone manufacturer or developer likeApple (AAPL), there hasn’t been one specific way to play that trend. For the next generation of apps, led by AI technologies, there are now several opportunities emerging. Many are from deep-pocketed companies that already provide back-end software services. For instance,Adobe (ADBE) is best known for its PDF reader. But the company provides a number of solutions fo...

There are many ways for a company to deliver value to shareholders. Once a company reaches a certain size, growth becomes more difficult without coming up with new and potentially expensive initiatives. That’s why many large companies start paying a dividend. Companies have another trick up their sleeve too. That trick is the share buyback program. As long as a company isn’t using debt to retire shares, it can have a great long-term impact on prices. Payment processing companyPayPal Holdings (PYPL) is looking to add another $5 billion to their buyback program, a sign that company man...

It’s likely that the AI trend has staying power. But many AI stocks have gone nearly vertical in recent weeks. That suggests the space is ripe for a pullback that could bring down valuations quickly, and set up a further run later in the year. Such a move already occurred after a short rally in AI stocks to start the year. Now, investors have more companies working on AI initiatives to invest in, which creates a better watch list of opportunities. One company that looks ready for a pullback with an eye towards buying for the long term isOracle (ORCL). The company has shifted towards ...

Sometimes, it seems like a company can do no wrong. That’s when it’s a dangerous time to invest. That’s because good news pushes prices higher. But once buyers are exhausted, even more good news is unlikely to move prices higher. The reverse also holds true. When a company has had a series of poor earnings reports or other bad news, one more event likely won’t move things too much lower. Entertainment giantThe Walt Disney Company (DIS) has been hit with a lot of negatives in the past year. Streaming subscribers have slowed. The company’s legal carveout in the state of Florida has bee...

Traders are starting to bet more on a soft landing for the economy, rather than a heavy recession. That’s good news. It also means that some sectors should perform better than expected in the months ahead. One area is construction. From increased infrastructure spending to a housing boom, there are plenty of ways to play the trend. The top way is to invest in commodities that rise in response to a strong economy. The key commodity is copper. The metal’s relatively low cost and utility for a variety of purposes makes it a solid indicator as to the performance of the economy. In the...

With tech stocks largely back in fashion, there are a few laggards out there. They may be the better opportunity going forward. That’s because laggards have better valuations, having not run up as much. And they may surprise investors with strong operational performance. That’s especially true when contrasting some of the biggest players year-to-date, and especially where investors aren’t that excited for a specific company at the moment. Investors don’t need to find the most boring stock, just one that’s less exciting. One example isAdvanced Micro Devices (AMD). The chipmaker is up ...

The latest inflation data continues to slow. Prices are now rising at their lowest rate in two years. But they’re still rising. And inflation is cumulative. So chances are, we’ll still have to deal with rising costs for everyday goods. Many consumers are shifting their spending from brand-name products to store-brands. The price is a bit lower, and sometimes those products are even made in the same factories. One company that creates store brands isTreeHouse Foods (THS). The private label food manufacturer and distributer works across the packaged food chain. They’ve been a big wi...