What a weird time to be an investor, huh?
The economy is still being held to a trickle – but for some reason – the markets have still found a way to make profits for those with a keen eye for the stocks that have the most promise.
One of the main reasons for this dichotomy has to do with the stimulus that the US federal government signed to help Americans get through the lockdown.
However, a lot of people that didn’t need to use the money right away – used it to invest in the markets to try and grow it.
The problem is – a lot of them were just “poking and hoping” – meaning they had no idea what they were doing…
But there is definitely a way that people can play the federally stimulated markets if you know what to look for.
Here are a few hints…
The Federal Reserve is being aggressive in trying to stave off a recession – or worse – a depression…
And one of the BIGGEST things it has done so far is to slash interest rates to practically 0% – which may be the best reason any investor would need to be in the stock market right now – instead of letting their money wallow in some money market, CD or IRA right now.
Low interest rates are not the “norm”…
Meaning 0% interest rates are not really a “natural” state of being for an economy – but it’s the exact reason why so many people have been trying their hand at stocks.
However – while this may not be the right thing to do – we need it right now…
And we should enjoy it while it lasts – because it won’t be this way forever. The Fed will eventually have to raise rates again to fight inflation – so use this time wisely.
Right now, one of the smartest things you can do is stay away from the crowds.
What does that mean?
It means that if you see a stock talked about on CNN or CNBC – the smart move for now might be to stay away from it…
Unless the stock TRULY has a lot of promise and is especially undervalued.
If not, it’ll be better to stay away until the mass of first-timers decides to bail – because the truth is – MANY of the stocks that people are really paying attention to and buying right now, were overvalued before the pandemic started.
What you want to look for are the stocks that are small enough to pass under the radar or were somehow overlooked when that stimulus money came pouring in.
The worst thing to do right now would be to think that things safe and that the rally has beaten back the bear…
That’s not the case, at all. While the Fed’s actions have been a hot fire on a cold night – without sustainable fuel, it has every chance to burn out before the dawn.
Which means that we’re not out of the woods yet.
The fact is – there could still be a bear lurking in the shadows – just outside of the firelight, just waiting for the flames to die down enough for it to feel comfortable entering into our camp.
The worst part is…
Things can seem fine – but all it takes is a gust of wind at the right angle – and our fire could be put out and any moment and the bear could strike when we weren’t prepared.
We have to know what signs to look for to see if there’s a bear even in the vicinity…
When it comes to the markets – that’s not always easy – however it’s a good bet to say that if we’re going to enter into a REAL bear market, it’ll be when people feel the safest.
When will that be?
Well, logic dictates that people will begin feeling safe if and when the markets recoup loses they made from the record highs they reached this year.
And to make it really interesting…
We could easily be lulled into a false sense of security if the markets not only reach those highs they hit earlier this year – but then exceed them.
Talk about a sense of security…
Watch what happens if the market hit NEW records over the next coming months. If this happens – it’s time to become SUPER cautious.
The good news is…
There is still PLENTY of room for the stock market to grow and plenty of places for investors to continue to profit.
If you’ve been fortunate enough to profit from the markets so far – awesome!
However, if you haven’t, and you find yourself floundering in these uncertain times – you might want to let the Gorilla do some of the work for you.
My trading system doesn’t work on rumors or emotion…
Hard data is the only thing that drives our recommendations – so if you’ve found yourself at a point where you’re needing a little help – please, consider subscribing to GorillaTrades today.
If not, the Gorilla understand completely…
Just do yourself a favor and blaze your own path during these trying times.
To victor go the spoils!!
“The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.” – Winston Churchill
