Updated: Apr 8, 2021
I do live trading on my Twitter and would like to post the real option trades that I am doing, and what my current watchlist is. Follow along on my journey to $1 million.
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NIKE: Closed for +20% profit.
It was a mixed day today as most of the major indices were flat, but tech and innovation managed some small gains. I am taking this as a good and healthy sign. After coming off of 3 consecutive days of excellent gains for the tech sector, sometimes the markets need a day to digest what just happened, and I'll take a flat day over a retreating day anytime.
I've been saying for a week or two now that we are entering the 'Roaring '20s', and I've been saying for a month that this inflation worry and rising bond yields is one of the biggest overreactions that I've seen in a long time. It seems like most of the worries have already been priced in, especially to tech stocks; that is not to say that the summer won't provide more inflation scares. There will be inflation, but consider what inflation does for asset prices. For the long term, inflation is good for asset prices because it creates more of an incentive to get into them. In some markets, real estate is booming. A lot of houses are selling 20-40% over asking price, believe it or not (I'm looking at you Texas). It is simply because inflation will drive up prices of materials and labor, and in some hot markets supply is very, very short.
Real estate is just one example of rising, or should I say, skyrocketing asset prices right now. One of the easiest assets to buy and own are stocks, especially when brokers such as Webull, keep giving away free stocks. Why would you want to own USD? It is a horribly depreciating asset; it will take the biggest hit from inflation in the coming years considering how much the Fed just printed. The truth is investors don't want and will be buying equities which in turn will push up prices. If you have cash sitting on the sidelines, your goal should be buying assets.
I believe that most of the stock market is set to push to and beyond all time highs. The best deals right now are in innovation, which still aren't fully recovered from the last dip. I would even start to classify them, at current prices, low risk plays since any future dips I speculate will be met with massive support. Investors will see it as another opportunity to get rid of the cash and take advantage of good deals. Some say, buy airline stock which might be back to pre-covid levels, but they aren't cash making cows and for my entire life always struggled with debt and seemingly endless bailouts. Why is it different now? I say, buy tech and innovation which will be the future growth that will revolutionize our world that we live in today and change it where it will be in many ways unrecognizable. Can you imagine not having personal computers? It was less than one generation ago where computers were a figment of our imagination. Given the rate of change, our future will be exponentially different faster than we know it. Make your portfolio relevant and put it on the right side of the future.
Note: Risk (1 out of 5) is my opinion of how risky the stock and these plays are; 1 being the lowest and 5 is the highest.
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Disclaimer: The comments opinions and analysis expressed herein are for informational and educational purpose only and should not be considered as individual advice or recommendations. Prostockadvice.com is not responsible or liable in any way for opinions expressed here. This is not meant to be financial advice as we are not a licensed financial advisor.