(Please enjoy this updated version of my weekly commentary published September 16, 2021 from the POWR Stocks Under $10 newsletter).
In a recent webinar, I discussed the importance of analyzing market conditions to inform our trading strategy. If you’d like to view that presentation, please click the link below:
On a longer-term basis, the market remains in a bull market due to earnings growth and low rates. Both are supportive of the notion that the stock market should be higher than current levels than a year from now.
However, it’s also clear that the market is not trending higher with widespread participation. This is evident from a variety of perspectives, but maybe the clearest way to see it is that since mid-February, the Russell 2000 is down 5%, while the S&P 500 is up about 17%.
For stocks under $10, this is certainly a headwind as the vast majority of stocks in this category are microcaps, small caps, or mid caps. And, many of the stocks with market caps above $1 billion are foreign companies which have also underperformed in 2021.
So, this is certainly a headwind at the moment, and we should shape our expectations and manage risk accordingly.
Yet, it’s also an opportunity of sorts as these conditions have prevailed for much of the last seven months. At some point, market conditions will change, and we will see outperformance in these areas which will be the time to really get aggressive.
Over the next few weeks, we will be adding more stocks to the portfolio for a total between 12 and 14. These will be posted on the Members page on the website, sent via email, and are available through text alerts.
I’m very excited to begin this journey.
The market is in a bull market, and after seven months of lagging performance in micro/small/mid caps, it’s only a matter of time before these grab the baton once again.
What To Do Next?
The POWR Stocks Under $10 portfolio launched this week and we already revealed our first 4 exciting picks to subscribers.
What is the secret to its success?
The portfolio gets most of its fresh picks from the Top 10 Stocks Under $10 Strategy which has market beating +62.88% annual returns.
If you would like to see the 4 brand new picks and get access to the next 3 stocks being added on Monday, September 20th then consider starting a 30 day trial by clicking the link below.
All the Best!
Chief Growth Strategist, StockNews
Editor, POWR Stocks Under $10 Newsletter
SPY shares were trading at $441.81 per share on Friday afternoon, down $5.36 (-1.20%). Year-to-date, SPY has gained 18.94%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Jaimini Desai
Jaimini Desai has been a financial writer and reporter for nearly a decade. His goal is to help readers identify risks and opportunities in the markets. He is the Chief Growth Strategist for StockNews.com and the editor of POWR Growth newsletter. Learn more about Jaimini’s background, along with links to his most recent articles.A Brand New Strategy to Outperform the Market appeared first on StockNews.com