More than a year has passed since COVID-19 forced us to hide inside our homes. Now, amid reopening, we’re seeing inflation, major volatility, rising bond rates and a pullback in tech. Investors are also facing a tough decision on which sectors to invest in post-COVID-19.
The White House recently announced that vaccines would be distributed to pandemic-fatigued Americans faster than originally predicted.
President Joe Biden even went on to say there should be enough vaccines for every adult by the end of May — two months sooner than many originally thought.
While the economy isn’t quite there yet — and if new predictions are true — then investors can expect a jolt in a few key sectors to invest post-COVID-19..
So let’s talk about which ones…
Key Sectors To Invest Post-COVID-19
It’s Hump Day! And the markets are completely lackluster… and Tuesday wasn’t any better.
The stock market fell apart like a Chinese motorcycle on Tuesday — for lack of a better phrase.
The Russell 2000 was down 4% at one point Tuesday, finishing 3.7% in the hole after the final bell.
But there’s an aspect of the stock market we need to address, and it’s one that WealthPress Senior Strategist Roger Scott and I have been discussing for awhile…
We’re going to see major volatility in 2021.
When we saw the Nasdaq begin to have those big distribution days, there were a lot of talking heads on TV telling everyone it was fine. They even went as far as to urge investors to look into airliner and cruise line stocks as the economy slowly reopened.
And these talking heads were acting like there would never be a moment of reckoning for those names, even as they were almost moving in a straight line up the charts.
But what happens to stocks that shoot straight up?
They crash — hard.
In fact, airliners have been hit with major turbulence and a huge sell-off this week that’s caused several names to almost fall double-digits.
So now what we’re seeing is a rotation of pain coming out of the tech stocks and into these small-cap stocks.
However, we think this rotation of pain could end up affecting the entire stock market — not just large- and small-cap tech stocks.
When you start to see intraday moves that are two or three standard deviations from the statistical norm — like how oil had 8% and 6% days last week — you begin to see major volatility form. Just take a look at the volatility going on in bonds and commodities.
Something important for investors to remember is that many Nasdaq 100 stocks are also in the S&P 500 or Dow Jones.
Once there are big outside moves in sub-sectors in one market, rest assured there will be contagion in other markets as well.
BUT this rotation of pain also means that there will be certain sectors to invest in post-COVID-19. In fact, some could become goldmines benefiting from the reopening.
That’s why we sat down with trading expert Roger Scott to dissect the markets and spot the best breakout ETFs and sectors to invest in post-COVID-19 amid the reopening.
For a deeper look into which sectors investors should watch, check out our video below. And as always, email any trading questions to jeff@joyofthetrade.com and stay ahead of the markets — especially these choppy ones — by subscribing to our YouTube channel.
P.S. From 1993 to 2021, you would have lost 10% of your money buying and holding the S&P 500 during the day…
Yet if you’d bought at the close and sold again right at the open, you could’ve seen an 812% increase in your investments.
Where did all the gains come from? Overnight moves!
I’m going to reveal how I’m exploiting these overnight moves on a handful of stocks every single day.
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