MONEY & MARKETS:
New technology’s user base growing at 5X the speed of the internet in the 1990s. Could dwarf dot-com boom.
Enthusiasm around a strong economic reopening helped push stocks higher in early trading. One sentiment boosting factor was positive news from the CDC. Daily infection levels are at their lowest since March 2020 and more than 50% of the U.S. population has had at least one dose of a vaccine. The major indices were green to begin the first trading session of June.
Investor confidence is up and we may see another all-time high for the S&P 500 in the near future. But some analysts warn, the tides could turn along with what may be a pivotal, mid-month Fed meeting.
Our trade alert for today features a tactic used by active investors to hedge their portfolio and even to turn a quick profit if things get ugly. It’s an important tool to have in your tool kit for the next time you think a downturn could be coming. Read on to learn more.
To your wealth,
Felix @ Ace of Investing
More From Our Libraries
Report: Forget Short Selling. Do this instead
When a sharp market downturn occurs, you can benefit from taking the reverse direction of the markets.
Investors use bearish bets to hedge their portfolios or to turn a quick profit if things get ugly. The main risk of traditional short-selling is that while profit is capped (a stock can only fall to zero), risk is theoretically unlimited.
Of course, other tactics can be used to cover a position at any time, but with a short-selling position, inventors are at risk of receiving margin calls on their trading account if their short position moves against them.
Report: 3 Value Stocks Trading at a Bargain
For the past ten years, hot growth stocks have been the better bet, providing average returns during the period of 15.35%, as compared to 7.61% for value investing portfolios. But now there are a multitude of experts proclaiming that value stocks will be en vogue in 2021 – and indeed, many already started to rally in 2020’s late innings.
Cyclical stocks considered too risky just a few months ago are suddenly flashing on investors’ radar.
Bank of America, for instance, sees the U.S. stock market in the early stages of a value cycle that will pick up steam in 2021. “The relative discount for value stocks remains nearly two standard deviations below average, “ BofA analysts say.
In this article we highlight three stocks that seem timely in a post-pandemic world, which for practical purposes should materialize in 2021.
Where to Invest $500 Right Now…
Before you consider buying any of the stocks in our report, you’ll want to see this.
Investing legend, Whitney Tilson just revealed his #1 stock for 2021…
And it’s not in any of our reports.
He bought Netflix at $7.78, Apple at $1.42, Amazon at $48 and Now he’s going all-in on the one stock driving the next big tech trend that will make investors rich in 2021.
You can learn all about it on Mr. Tilson’s Website, here.
Wondering what stock he’s investing in?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.
Report: 3 Small-cap Tickers to Buy Now
Following a tumultuous and turbulent year in 2020, the US economy appears to be on track for a strong turnaround in 2021. Many investors are once again willing to take bets on small-cap stocks during the early stages of economic growth cycles. The Russell 2000 has gained 48% in the last six months, outpacing the large-cap S&P 500, which has gained 28%.
Because of their size, small-cap stocks have strong, albeit volatile, growth potential. If you’re interested in adding small-cap stocks to your portfolio but want to cut back on the risk, these ETFs can reduce the volatility associated with individual stocks while adding an important layer of diversification to your portfolio.
In this article, our analysts look at three important small-cap ETFs to consider if you want to take advantage of the benefits that small-caps can provide but don’t want to deal with the analysis and decision-making.
Watchlist: 3 Stocks to Watch This Week
Investors are anticipating key data this week. Consumer confidence, home price data and new home sales are out on Tuesday. Durable goods will be released Thursday and the consumer sentiment report is issued Friday. Perhaps the most important announcement will be Friday’s personal income and consumer spending data, which includes the personal consumption expenditure price deflator, the Fed’s preferred inflation measure.
Volatility could continue as Wall Street processes a slew of economic data. But if what we have witnessed as the market has chopped around this month is any indicator, dip buyers are waiting to step into declines and snap up perceived bargains.
Report: The 2021 SPAC Power Playbook
2020 was a year where we heard a LOT about what some have dubbed “blank check companies.” But more sophisticated investors refer to these potential unicorns as “Special Purpose Acquisition Companies” or SPACs from here on out in this power playbook.
With the IPO market booming and investors looking for bigger and better returns, SPACs are revving up their engines in hot pursuit of their merger targets. And every single day, a new one gets announced.
And I’m betting the only reason you aren’t already in on this profit opportunity is because you don’t really “get it.” After you finish this playbook, that won’t be a problem anymore.
True Market Insiders
While mainstream news continues to divide the political narrative… Most American’s are clueless that one President Biden policy could unintentionally trigger an enormous wealth opportunity by July 4th. [Full Story…]