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3 Questions for Investing in the "New Normal"

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Prior to the outbreak of COVID-19, we had been living the bull market dream, with unemployment at a half-century low, equities consistently hitting new highs and an economy that had never been stronger. The pandemic obviously changed all that. But there is money to be made in the current volatility and as the economy starts to open up, the post-pandemic world will offer almost unimaginable potential gains.

The biggest questions facing today's investors is: how can I tell the winners from the losers? For every tech company set to skyrocket there is a former retail giant on the brink of bankruptcy.

When investing in these uncertain times, I’ve put together a list of 3 questions you need to ask yourself before making your next trade.

1) How Has The Stock Fared Through The Pandemic?

Stocks that have fared well amid this global crisis are ones that are well-capitalized, and ones that investors perceive as having excellent long-term potential. QQQ, for example, is made up of the Nasdaq-100, which encompasses the biggest US tech names, and has substantially outperformed the broader market.

Looking for stocks that have outperformed the broader market in these uncertain times will help you sort the studs from the duds. Investors and traders have been rationally buying high-quality stocks and selling uncertain prospects. This is not to say I would recommend chasing rallies but be vigilantly hunting for stocks that have stayed comparatively buoyant in the past few months.

Keep reading . . .


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5 Stocks Poised to Soar Past the Pandemic

A handful of high-tech companies have stepped up to keep America running through the COVID-19 crisis. Now investors in these companies have a shot at serious profits. (For example, Zoom jumped 108.5% in less than 4 months -- while most stocks were sinking.)

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade.  

See the 5 high-tech stocks now >>

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2)  Is Management Ahead Of The Innovative Curve?

Is the enterprise one that fosters innovation, or is it one that slowly adapts to broader trends? Companies that will thrive in the ‘Roaring 20s’ are those with management teams that are continually exploring new ideas. Complacent leadership will fall behind in this rapidly evolving economy.

Understanding the management teams’ tactics is crucial to evaluating a company’s ability to maintain a robust growth capacity.

3) Is The Stock Trading At Highs?

I like stocks that have done well during this pandemic driven market, but I wouldn’t consider buying stocks that are sitting at or even close to all-time highs. We are facing a rare problematic economic condition and chasing stock rallies will be futile. Patience is the key to effectively trading this environment.

Amazon is a perfect example of shares to wait on. The company is well-capitalized, has an excellent long-term outlook, and has traded outstandingly amid the pandemic. Despite AMZN’s outstanding credentials, the stock fell over 7% following its earnings report because the shares had been pushed to an unsustainably rich level. I would consider buying AMZN if the shares fell to below $2,000 again.

The equity markets have been highly volatile, and chasing a rally is the last thing you want to do. When examining potential investment ideas, ensure that you are paying a fair price that you are comfortable with.

How to Capitalize on the “New Normal”

The COVID-19 pandemic has accelerated the “survival of the fittest” process for businesses around the globe. The fittest companies are poised to become increasingly dominant forces in the market. Certain tech companies have already experienced exponential growth in demand.

Because of massive shifts in consumer behavior, experts predict this could be one of the greatest investing opportunities of this generation – especially for those who get in on the action early.

Today, I’m releasing my brand-new COVID-19 Investor’s Guide: 5 Stocks to Profit from the “New Normal.” This urgent report explores the industries that will be most affected and names 5 high-tech stocks that could skyrocket in the months ahead. Now is an ideal time to get started.

The report is only available until Sunday, May 10. I encourage you to download it now.

Click Here to Claim Your Copy of the COVID-19 Investor’s Guide >>

Good Investing,

Daniel Laboe
Zacks Strategist

Daniel Laboe is an investment expert with a focus and passion for tech, previously working at a Fortune 50 company as a financial analyst and a trader for a Chicago-based proprietary trading firm.

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