Three Ways You Can Profit In Today’s Volatile Market
The market is plugged into group think driven by the two emotions of fear and greed. When you see a stock going up that is greed taking hold and investors buying a lot of shares which drives up the price. The opposite is true for fear. Currently the market is very volatile so everyone is going with the grain and investing in steady companies which might be driving up their prices. So you have to think against the grain.
See how to think against the grain in a volatile market.
They also have a ton of cash, which lets them invest in research and development while still paying dividends. Moreover, the recent volatility in stocks has stemmed from fears that the Federal Reserve may start hiking rates this year. Well, tech has historically outpaced the S&P 500 in the six months following rate hikes. Lean into this group through iShares U.S. Technology . Apple, Microsoft, and Intel make up more than a third of this ETF’s holdings.
If you are up for a long term play in the market, oil is historically low. Giant energy stocks have dropped 20-40% in their stock prices like Halliburton and Conoco-Phillips for example. You can invest in these companies by making a value play which means buying when these stocks are cheap and undervalued and selling them a year from now after oil has rebounded. Energy ETF is a great way to diversify your investment.
Read about the energy play that could get you large returns.
About Shaun Archer Tatum Shaun works in corporate finance in New York City. He has done financial consulting for several start-ups and has worked at several Fortune 500 companies. He has contributed several finance/investing articles on Seeking Alpha which have been published on Yahoo! Finance.