This Commodity Will Continue to See Strength This Year

In a volatile market, it may seem that no sector is safe. That’s especially true as both stocks and bonds sold off by double-digits last year. But other asset classes are more mixed. Commodities held up fairly well last year, and some specific plays look set to fare well into 2023 and possibly beyond. That’s because the rules of the commodity space can come down to supply and demand. Any change in those factors can lead to big prices swings. While investor ...
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Pick the Industry Leader in a Stock Picker’s Market

Last year’s bear market likely isn’t quite over yet. However, many stocks that were fairly valued are now bargains. And they could start moving higher in the months ahead as the bear market reaches its peak. In that kind of environment, there will be a quick jump higher for nearly all stocks. But the best performers will come from those companies that are industry leaders, and will be more sustainable than just a jump higher. For instance, right now investors are skeptical ...
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Watch For Companies Grabbing Market Share in a Tough Economy

There are many ways to value a company. For an industry with only a few players, one key metric is market share. That’s because when there are just a few companies in an industry, it’s growth is largely over. So what matters most is being able to grow by getting consumers to switch. In a slowing economy, companies focusing on growing their market share could be solid winners… and could also show investors which companies to avoid right now. For instance, dating ...
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Wait to Buy a Turnaround Play Until There’s a Sign of a Turnaround

Any successful company will eventually struggle with slowing demand. Those that are successful are able to turn around a declining situation. But many “turnaround” stories are just that – stories. It’s crucial for investors to be able to separate true turnarounds from talk of improvement. That’s why investors should wait for trends such as improving profit margins or improved earnings before waiting to invest in such a story. One surprising story from 2022 has been that of Netflix (NFLX). The company struggled ...
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For Market-Beating Long-Term Results, Follow the Big Money

It’s no surprise that when it comes to investing, larger players can have some advantages. One advantage smaller investors have, however, is the ability to see what the big players are doing and follow along. In a bear market, they may even get a better deal. By following investors with a strong track record, it’s possible to beat the market over time. And to do so with less volatility than other market strategies. One move investors can make now is to follow ...
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Let Short-Term Fear Provide You with a Great Entry Point

In bear markets, investors and traders alike tend to sell first and ask questions later. That can create opportunities, provided you know how to weed through them. One opportunity occurs when there’s  a clear short-term issue that will be resolved in time. When that occurs, investors can profit from the rebound, although it will take patience… especially in a market that isn’t moving along in a bullish manner. Yet these opportunities occur all the time. One opportunity that’s come up just this ...
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This Player’s Entry into the Streaming Wars Could Lead to Increased Profitability

For years, Netflix (NFLX) dominated the streaming space. That allowed the company to grow quickly, and gain a massive market cap relative to its earnings. But competitors from across the media spectrum have come in with their own services. One of the early streaming players hasn’t been seen as a competitor to the media streamers. But that appears to be changing, and this company may end up becoming a surprising winner in this space thanks to more visibility and even profitability. The ...
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Keep Plugging Away at Industry Leaders Amid This Challenging Year

For long-term investors, there’s no better place to be than in industry leaders. Every industry has one. The company that has better products and profit margins than competitors. In a bull market, they’re correspondingly more expensive. In a bear market, that may be true… but the company’s valuation may be better. That’s why patient investors can pick up great companies at a far more reasonable value during a bear market. Doing so can lead to market-beating profits on a rebound. One company ...
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