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The WSB/Reddit short squeeze traders were mostly trading in stocks that have, historically, been considered values. Is a new generation of investors falling in love with value?
Description:
Welcome to Episode #259 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Associate Stock Strategist, Dan Laboe, who is also the editor of the new Zacks newsletter service, the Headline Trader, to talk about the group of young investors who have fallen in love with the stock market.
Dan, himself, is a young Millennial, but some of the investors are even younger. They are teenagers, which means they are GenerationZ.
Is 90-Year-Old Buffett an Investing Idol?
Reuters just had an article with the title: “South Korean boy investor with 43% gains is new retail trading icon.”
And he dreams of becoming the next Warren Buffett.
He isn’t day trading. He told the reporter he is buying to hold for 10 to 20 years, as all good value investors try to do.
He’s 12.
Young Traders Buy Value Stocks
GameStop (GME - Free Report) , the most popular of the WSB/Reddit short-squeeze stocks, had been a value stock for years.
Not only was it being ignored by Wall Street, but it traded with a single digit P/E.
Same with General Motors (GM - Free Report) , which has also surged in popularity among young investors on Robinhood.
General Motors shares are up 62% in the last year but still trades with a forward P/E of just 9.
Are Old Favorites Still in Vogue?
New, young investors usually have less capital to deploy.
That makes it difficult to buy shares in companies like Amazon (AMZN - Free Report) , which is trading at over $3,000 per share, even with buying fractional shares.
But Tesla (TSLA - Free Report) and Apple (AAPL - Free Report) have both split their shares, making it easier to buy more shares.
Does share price keep young investors out of certain stocks so that’s why they focus on value stocks, many of which may NOT be priced so high on a dollar basis?
Listen to this week’s podcast to find out the answer to that question and others including young investors buying SPACs and other hot investing trends.
[In full disclosure, Tracey owns shares of AMZN in her personal portfolio.]
New Zacks Strategy Jumps on Breaking News
It starts with stocks that have strong fundamentals and upward swinging earnings estimates, then watches them hawklike.
This new Headline Trader is designed to catch these companies just as they’re ignited by sometimes global and sometimes obscure development and events.
Rewards can be quick and very substantial. The same approach has been used to snare gains like Tesla’s +810.0%, Hubspot’s +143.2%, Target’s +95.0%, Sea Limited’s +413.6%, and more.
Image: Bigstock
Are Young Investors Secretly Value Investors?
The WSB/Reddit short squeeze traders were mostly trading in stocks that have, historically, been considered values. Is a new generation of investors falling in love with value?
Description:
Welcome to Episode #259 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Associate Stock Strategist, Dan Laboe, who is also the editor of the new Zacks newsletter service, the Headline Trader, to talk about the group of young investors who have fallen in love with the stock market.
Dan, himself, is a young Millennial, but some of the investors are even younger. They are teenagers, which means they are GenerationZ.
Is 90-Year-Old Buffett an Investing Idol?
Reuters just had an article with the title: “South Korean boy investor with 43% gains is new retail trading icon.”
And he dreams of becoming the next Warren Buffett.
He isn’t day trading. He told the reporter he is buying to hold for 10 to 20 years, as all good value investors try to do.
He’s 12.
Young Traders Buy Value Stocks
GameStop (GME - Free Report) , the most popular of the WSB/Reddit short-squeeze stocks, had been a value stock for years.
Not only was it being ignored by Wall Street, but it traded with a single digit P/E.
Same with General Motors (GM - Free Report) , which has also surged in popularity among young investors on Robinhood.
General Motors shares are up 62% in the last year but still trades with a forward P/E of just 9.
Are Old Favorites Still in Vogue?
New, young investors usually have less capital to deploy.
That makes it difficult to buy shares in companies like Amazon (AMZN - Free Report) , which is trading at over $3,000 per share, even with buying fractional shares.
But Tesla (TSLA - Free Report) and Apple (AAPL - Free Report) have both split their shares, making it easier to buy more shares.
Does share price keep young investors out of certain stocks so that’s why they focus on value stocks, many of which may NOT be priced so high on a dollar basis?
Listen to this week’s podcast to find out the answer to that question and others including young investors buying SPACs and other hot investing trends.
[In full disclosure, Tracey owns shares of AMZN in her personal portfolio.]
New Zacks Strategy Jumps on Breaking News
It starts with stocks that have strong fundamentals and upward swinging earnings estimates, then watches them hawklike.
This new Headline Trader is designed to catch these companies just as they’re ignited by sometimes global and sometimes obscure development and events.
Rewards can be quick and very substantial. The same approach has been used to snare gains like Tesla’s +810.0%, Hubspot’s +143.2%, Target’s +95.0%, Sea Limited’s +413.6%, and more.
See the First Official Buys >>