
The American stock market is having a shaky year. This is set to be compounded with the return of interest rate hikes, The Guardian reporting a 0.5 percentage point increase from the Fed in an attempt to tackle surging inflation. This is bad news for stocks, bad news for shares, and bad news for investment businesses. With the storm swirling, now is a good time to bunker down and start looking for different methods of investment. At the forefront of this consideration should be research.
Practicing due diligence
2021 saw the rise of social media led ‘Reddit’ stocks, but these have been a poison pill for many advisers. According to CNBC’s Jim Cramer, most investors are now leaving these stocks behind after noticing a trend – they beat Wall Street, but they don’t, ultimately, turn a profit. Many investors are turning back to the most tried-and-tested way of investing – through research newsletters and partnerships. Seeking Alpha, Nate’s Notes and Chris MacIntosh Capitalist Exploits have all seen renewed interest owing to the current malaise, and for good reason. To use the Capitalist Exploits research firm as an example, this allows investors to get tips that are as good as they can be while also being presented with a clear grasp of the risk balance on offer.
Seeing the trends
One big opportunity being presented to investors right now is to buy the dip. This is most tantalizing in the world of crypto – market mainstay Bitcoin has now dropped under $30,000, but it has seen such gigantic dips reversed in the past. As Forbes highlights, the recent meltdown of several stablecoins has created news headlines the world over, but cryptocurrencies really are here to stay. There is now governmental interest in a number of coins, and the US government has put real funding into their option, the USDC, which now boasts $52 billion in market cap. These are real opportunities for investors.
Reverting to norm
The exceptional volatility of the market has lent itself to the promotion of penny stocks, and for good reason. Crazy times call for sometimes leftfield measures, and that includes investing in smaller firms. Yahoo is now collating a monthly roundup of the best penny stocks identified according to their algorithm, and it makes for interesting reading. Tech startups feature heavily, with the startup scene still flourishing and presenting serious profits in the new digital economy. Sustainable firms, who focus on eco-friendly industry, are also seeing a lot of interest. While the stock market is being shook up, the same can’t necessarily be said about the wider economy – people want to see growth. Investing accordingly can be a powerful strategy.
While the current market madness may inspire a little pragmatism in some people, and that’s definitely a good place to start, it’s also worth thinking about more creative investments. Opportunities are being opened up, and that’s something for savvy investors to start focusing on.