Even Amid Market Turmoil, Expect “Buy the Rumor” Trades

There’s an old Wall Street adage about buying the rumor and selling the news. And traders continue to pile in ahead of a possible development that may or may not pan out. Either way, there tends to be selling later on. Sometimes the opposite is true as well, with one company’s rumor impacting a competitor and causing their share price to drop. That may be the case with Block (SQ). The payments processing company has been taking a dive for months, but ...
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Rising Inflation Fears Create Buying Opportunities for Strong Brands

With inflation running at its hottest levels since 1982, investors are rethinking how companies can cope with growing their business with such a rapid change. And many companies are starting to report that rising costs are compressing profit margins. However, if inflation does come down later in the year, profit margins for many companies can come roaring back, which could make now an attractive buying opportunity for any firm with a strong brand and customer loyalty. One such firm is paper goods ...
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Bear Market or Not, Semiconductors Still Stand to Profit

The semiconductor shortage remains a huge setback to global manufacturing and production. However, the industry as a whole stands to profit from the trend. So it’s likely to continue growing no matter what the stock market does in the short term. Earnings season is still in its early stages, but looks strong for companies in the semiconductor space, with strong sales, ongoing demand, and improving profit margins. One early winner from earnings season is Texas Instruments (TXN). The semiconductor manufacturer beat analyst ...
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In a Volatile Market, Use Activist Trends to Profit

When the going gets tough, traders have a number of opportunities to take advantage of. They can look to invest in prospective mergers, where a market selloff may have depressed prices that may quickly snap back. Another possibility is to buy into beaten-down names where activist investors are getting involved as well. That could allow for a big upside when markets move higher again. One such trend may be underway with consumer goods giant Unilever (UL). The stock jumped nearly 9 percent ...
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Opportunities Rise in Big Tech Amid Market Meltdown

Investors looking for bargains in today’s market have their pick right now. This may be a good time to look at companies that dominate their industry now, as a rebound will likely make a leader prohibitively expensive to buy later. With a market drop heavily focused on the tech space, this may represent the best opportunity for buying big tech names for some time to come. One such opportunity right now is Amazon (AMZN). While shares fared well during the pandemic, the ...
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This Chipmaker Will Be One of the Leaders in the Next Market Move Higher

The stock market’s recent decline has been felt most heavily in technology stocks. That’s the typical case of selloffs in general, as tech stocks tend to outperform the market on the way up. Investors who buy industry-leading tech names during a market correction can typically improve their returns as the market inevitably rebounds. While it may be too soon to say if the current bottom is in, we’re likely closer to the bottom than not. That makes it the perfect time to ...
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Opportunities Abound as the Video Game Sector Prepares to Shrink

Microsoft (MSFT) made its biggest acquisition offer yet, with the proposal to buy Activision Blizzard (ATVI) at $95 per share. Judging by how the share prices of both companies have moved, the market isn’t quite satisfied that such a merger will go through. However, a few other names in the video game space have had a selloff on the news. Whether a deal pans out between the two companies or not, these other firms will likely recover in time and continue ...
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Buy Leading Tech Plays on Big Selloffs

The Nasdaq has started off the year with an un-seasonal decline, and one that’s leaving the index looking at a full-blown correction of 10 percent off the most recent highs. While the length and depth of any pullback is unknown, markets do tend to rebound in time—and tech-heavy stocks tend to be the fastest to start to move higher. Investors who embrace a “buy the dip” mentality towards key tech names can best take advantage of any inevitable market selloff. One such ...
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