Consumers are starting to show signs of pulling back on spending in a number of areas. For a recession, that tends to mean a large slowdown in a number of high-cost activities, such as cruises or other vacations. That also means that low-cost forms of entertainment tend to hold up well. As with low-cost food or beverages, demand remains much stickier, no matter how the economy declines. Investors who follow this trend can find profitable opportunities now. One potential low-cost opportunity is in sports betting. Legalized online betting is only a few years old, and it’s still a trend...

There’s nothing shocking in admitting that consumer spending drives the economy. And with uncertain and inflation high, it’s also no surprise that consumers are trending with lower-cost goods and services, foregoing higher-end ones. That’s been somewhat apparent this earnings season, as high-end retailers have struggled more than big-box stores that cater to a cost-conscious clientele. With these companies now reporting earnings, there’s a sigh of relief as things haven’t been as bad as feared. The poster child for those fears has beenWalmart (WMT). The company reported better-than-e...

Some industries tend to stay the same over time. That can bode well for investors, provided that industry has already consolidated into a few big players. That can be seen with companies like consumer goods. For industries that continue to face new innovations, however, leadership can change in time. Investors who look beyond the current leaders and look to those becoming new leaders stand to make an outsized return as that trend plays out. One industry seeing a shift in leadership is in internet routing equipment. Competitors are starting to outperform industry leaderCisco Systems (...

The market has recovered nearly half of its losses from the bottom – and in just the span of a few short weeks. That may not mean we’re out of the woods yet. But investors looking for stocks that could have a large move from here need to look for a company with a catalyst. That could be a new product or service, or simply a company that benefits from a macroeconomic trend like lower inflation rates. Following these cyclical companies at the right time can make traders a fortune. Right now, homebuilders seem poised for further losses. However, if the Fed starts to pivot on interest ra...

A bear market is a great time to build a position in industry-leading companies. A market selloff that sends great companies down can lead to improved returns in the future. Those returns could be even better buying companies that aren’t the top name in the industry. The second-best company in the space will likely get hit a little bit harder in a market downtrend. But it may see higher returns when the market turns around. Right now, that’s playing out with home improvement retailers.Lowe’s (LOW) is getting a cut on analyst expectations. But shares already trade at 16 times earnings...

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 still bullish on its future isWendy’s (WEN). The fast-food chain just slightly missed on its lat...

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 tech space right now, one old-school example is telling.Berkshire Hathaway (BRK-B) has now picked up about 20 percent of the s...

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 isPalantir Technologies (PLTR). The data analytics company lowered guidance and warned on a slowdown in sales this year. That led to the stock dro...

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 companies that can play to economic activity should be attractive here, and have plenty of upside in time. One such...

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 isBlackRock (BLK) partnering withCoinbase (COIN) to expand crypto trading services to institutional clients. Among the...