Should You Invest in Shorted Stocks?
GameStop and other meme stocks have started to surge again. Most folks thought that the retail investment frenzy was over. Over a month ago we asked the question, Should You Invest in GameStop? Our conclusion was that when you can successfully time such investments both in getting in and getting out, they can be quite profitable. But, over the long haul, the reason that the majority of stocks are being shorted is that they are overpriced and will eventually fall. Much to our surprise, GameStop stock is up again!
Stimulus Money and Stock Market Investments
The Democrats are barreling past Republican opposition in the U.S. Senate to pass Biden’s stimulus bill. The $1.9 Trillion relief package will include funds to fight Covid-19, money to states to support vital work, and $1,400 each to Americans to make less than $50,000 a year. There will be some money for folks making more but it will taper off and be gone for those making $100,000 a year. Our interest at this point is the relationship between stimulus money and stock market investments.
Smith & Wesson Investment Risks
The business section of The New York Times has an article entitled, “The Most Important Gun Lawsuit You’ve Never Heard Of.” On the surface this has to do with advertising fraud by Smith & Wesson but it could be a lot more. American arms manufacturers have been protected by the Second Amendment to the Constitution of the United States as well as other federal legislation from too much scrutiny of their internal affairs and communications.
Treasury Yield and Growth Stocks
Last week we wrote about investments for the post-Covid economic recovery. In the same vein, we have been thinking about how interest rates are going up and investors are becoming wary of growth stocks. Treasury yield and growth stocks bear watching. Low interest rates have driven money into the stock market. Low interest rates have kept a lot of “zombie companies” afloat. And, many investors have simply followed the leader by investing in FFANG stocks like Apple as its shares go up faster than its earnings.
Investments for the Post-Covid Economic Recovery
The US economy is going to grow impressively in 2021. How long will the recovery last? What are some investments for the post-Covid economic recovery?
Carbon Sequestration Investments
Exxon Mobil is going to make $3 billion in carbon sequestration investments over the next five years. Exxon Mobil has gotten a lot of criticism for
Clean Energy Investment Specifics: Battery Production
As we have noted, ESG investing is on the rise. One branch of this investment method is targeted at green and clean energy. When investing to help create a greener world and to make a profit along the way, you need to delve into the specifics, one of which happens to be battery production. As the world pivots to electric vehicles, solar and wind farms, and other green methods of generating electricity, battery storage is essential. Unfortunately, the USA lags far behind Europe and China and will be in a position of having to […]
Energy Investments for 2021
The economy is going to start to recover and green energy will benefit from government policy. Both factors will affect your energy investments for 2021.
Your Investments When Interest Rates Rise
As vaccines take hold and the economy begins to return to normal, the Fed, at some point will raise interest rates. We look a few months to a year down the line at your investments when interest rates rise.
Predicting the Next Retail Investment Frenzy
The retail investor frenzy is pivoting from Gamestop to silver. Because little of this is based on fundamentals, is retail frenzy sentiment prediction possible? We noted in our article about market sentiment data that you used to be able to predict stock price changes by watching what information people were searching for on Google the week before. That time frame has shortened and the focus today is on social media like Reddit where retail investors share their trades and pile on to promising trades like Gamestop.