Thursday, December 31, 2020

The Stock Market Is About To Flip

The Stock Market Is About To Flip
Lets go into detail about the upcoming great stock market rotation of 2021, what this means for you, and how you can use this information to make more more - Enjoy! Add me on Instagram: GPStephan LIMITED TIME: Get 4 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1600): https://ift.tt/2PrY7Nt JOIN THE WEEKLY MENTORSHIP - https://ift.tt/37xef6R THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw The YouTube Creator Academy: Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF My ENTIRE Camera and Recording Equipment: https://ift.tt/2SbLvbD That all starts with two terms: GROWTH STOCKS, and VALUE STOCKS. A GROWTH STOCK is a company that has the POTENTIAL to outperform the market because of their RAPID GROWTH and EXPANSION. A VALUE STOCK is a company that is believed to be trading BELOW what it's actually worth, and because of that - they it has the POTENTIAL to bring YOU better returns. According to many articles, we’re in a new time where money might begin shifting AWAY from TECH…and into THE VALUE RECOVERY sectors, as investors try to capitalize on the re-opening of our economy. A Bank of America Analyst predicted that we’re at the early inning of an upcoming “value cycle”, and that the relative discount for Value stocks remains nearly two standard deviations below average. https://ift.tt/2W1aaDO Goldman Sachs also agreed with this, saying that the market is due for a large but temporary rotation out of growth stocks. https://ift.tt/34ZQx3o Marketwatch covered another analysts, who said that the market rally - up to THIS point - has been supported by companies which are more RESILIENT to socially-distant uncertainty….like, Zoom. But, a future rally is likely to include a combination of both recovery and E-COMMERCE, and future gains are likely going to be more balanced. https://ift.tt/2BatW9e And finally, JP Morgan also repeated the same thing for 2021, saying that value stocks are poised to outperform once the global economy fully re-emerges. https://markets.businessinsider.com/news/stocks/stock-market-value-rotation-previews-2021-action-strategy-outlook-jpmorgan-2020-11-1029798647  The RISK, however…is that things like this are NEARLY IMPOSSIBLE to time. We don’t know how much is already “priced in” to the market, we don’t know how much demand there will be, or how long investors will sit on the sidelines to wait it out and see what happens. We also don’t know if tech will just CONTINUE leading the way. So, in terms of my overall recommendation here…I’m not just going to tell you to “BUY THE INDEX FUND AND HODL!” Because that’s what I say every time…I want to make this more interesting, and really leave the choice to you…so here’s what I have to say: First, if you want to go and buy hard hit recovery stocks in the restaurant, airline, energy, oil, or travel sector…it’s high risk high reward. JUST BECAUSE something is trading below its value LAST YEAR, doesn’t mean it’s automatically going to return to that same price, or that THAT is how much it’s worth. Second, for LESS risk…you can invest in the broader markets through an index fund or ETF. The Russel 1000 follows the top 1000 companies in the United States, and tends to skew more towards large cap stocks - this would weight your investments slightly differently from the SP500, although not enough to miss out entirely if big tech keeps doing well. And THIRD…you COULD just keep doing what you’re normally doing, and stay invested in the SP500 and let the leaders continue to lead. There’s been talks about the concern of the index being weighted too heavily on a few really large companies…and there’s certainly risk to that…but, you also risk missing out on that growth in the event they continue to do well. For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com *Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
via YouTube https://www.youtube.com/watch?v=NFtiaFgzEz0

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