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 isBlackRock (BLK) partnering withCoinbase (COIN) to ...
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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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For the Best Market Returns, Follow the Demographics
Every dollar held by a consumer acts like a vote. And sometimes, consumers vote with their feet. The past few years has seen an acceleration to a trend that involves millions of Americans moving. For the most part, that’s meant a shift from more northern and colder climates to warmer ones. And a move from housing markets far above the national average to ones that are closer to the average, or even under it. The move towards the Gulf coast states, particularly ...
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Invest With Companies Simplifying Now
In a bull market, companies will try all sorts of new ways to compete with each other. When times get tougher, companies that are quick to cut back to the basics are the most likely to keep their losses to a minimum. That’s especially true as smaller or more leveraged players end up dealing with steep losses or even bankruptcy. Companies that can simplify and streamline operations should be more focused and have higher profit margins as the market turns around. One ...
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Stick With Earnings Winners in Today’s Economy
Earnings season is coming in mixed. It often does. In a bull market, a few misses can be written off. In a bear market… companies that miss tend to get punished. While that creates a potential buying opportunity, companies that miss in multiple quarters could be in for some rough performance. Traders looking for companies moving higher ahead of the rest of the market should focus on companies beating on earnings now. One such play isT-Mobile US (TMUS). The wireless telecom play ...
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High Profit Margin Companies Will Win in Time
The current earnings season is showing which companies can fare well with high inflation right now, and which companies are struggling. While a company may report far different earnings than average right now, companies with high profit margins will likely continue to grow in time. That’s because these companies can either reinvest at a high rate of return, or give capital back to shareholders via dividends or share buybacks. One company faring well right now and posting a strong profit margin isVisa ...
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