Market Health

Christmas in July? Make Your Wish List of Stocks Now

Christmas in July might actually happen this year…

Because the markets are about to go into overdrive. And experienced investors can smell the correction from a mile away.

Trading volume is going to go through the roof. And retail investors are going to turn out en masse.

This is because millions of eligible Americans are coming into money… $1,400 to be exact.

A recent survey by Mizuho Securities found that nearly 40% of stimulus check recipients plan to invest at least some of their “found money” in stocks or Bitcoin.

Mizuho estimated that 10% of the total stimulus funds – nearly $40 billion – will end up in securities. Additionally – and somewhat surprisingly – the survey found that check recipients would prefer to invest in Bitcoin over stocks.

All this is to say that things are going to get wild. So you better buckle up…

Nearly 40% of Recipients Expect to Invest Stimulus Check

Day traders are going to have a field day… and they should! This is the perfect setup for predictable market moves and easy gains.

But for long-term investors, this is a recipe for stress eating and nail-biting. We need to be prepared for the overheated valuations, inflated price targets and irrational exuberance that inevitably follow a big influx of new money in the markets.

Don’t let the hyperactivity fool you – on the upside or the downside. That’s how investors fall for the “buy high, sell low” trap.

Now is the time to remember our ground rules. Repeat after me…

I will not risk my savings in any one security or cryptocurrency.

I will do my research before jumping into a new opportunity.

I will not panic-sell when this market corrects itself.

If anything, use this time to make a wish list of stocks you would want to buy if they were cheaper. And then – when prices come back down to earth – go on a buying spree.

If you’re not sure where to find industries worth investing in during a downturn, look no further.

Here at Profit Trends, we focus on sectors that have high growth prospects, like renewable energy, cannabis, online retail, chipmakers and more.

If you can average down on any of your existing plays, you’ll position yourself to collect larger gains.

That’s the only way to play this flood of new money for the long term. So make your list, check it twice and get ready for an early Christmas.

Good investing,

Rebecca