THE START OF A BULL MARKET?
A lot of people make money in a bear market by carefully playing the dips and swings. Its not easy but volatility can be your friend in a hostile economy. With elections looming and peace talks in the air around the globe it certainly doesn't look like a market rally is imminent. But thinking outside the box the forward thinkers are making their plan to bet against the current trend and get set for an emerging push.
I'm not focusing on one or two sectors since so many things can happen this year. The medical and health care sector may prove to be the strongest. By saying this I mean the gains you see from an entry level gold exploration company may quickly been seen on some entry level bio-tech stocks. Its still a safe bet that gold will rise and the current disconnect in value from explorers to producers will be realized, however, some recent companies have put out strong news only to see gains lost in mere hours.
The fear factor is still at work and we will shake it in the coming months. Stick to what you know and not necessarily what you like. Too many traders get sentimental about investments not realizing that the company they fell in love with is not the same. Business models change and that new direction can be the kiss of death just as easily as the catalyst that sparks a run. I have walked away from stories recently because I simply could not understand the rationale behind some decisions by management. Keep in mind that bigger is not better. If your company is expanding it sure sounds good in the headlines but think of the additional costs associated with being bigger. The staffing, accounting, benefits, and general expenses take a hike along with your new acquisition. Keeping spending in line and accumulating wealth for future investment is a proven business model yet so many think there is an easier way to grow. Slow and steady growth insures value and keeps costs at a reasonable level while making investors feel the company is stable.
The world has put some things on the back burner such as iron ore, potash and rare earth elements. These things are needed and forward looking investors see that any rift in current demand can easily swing. I am looking at Graphene as being a high demand item in 2013 based on so many industry's having a useful application of Graphene. This could change the world in so many ways that it's hard to wrap your head around it. From energy to electronics this could be the high demand substance that rings in a new era of trading and expansion in the global markets. Take a minute to watch this video.
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