The past year has been a rollercoaster.
Stay-at-home stocks made 52-week highs too many times to count during 2020. But now, those same stocks are breaking down. I mean, just look at names like Zoom, Datadog and DocuSign… those were once top stocks.
Those were some of my favorite stay-at-home stocks this past year. But no more… they’re breaking down and making 90-day lows.
However, there’s a silver lining. Back-to-normalcy stocks are starting to come out of the shadows, bouncing back to fresh highs.
So that’s what we’re going to talk about in today’s video… back-to-normalcy stocks that are jumping on the recent change in sentiment.
First and foremost, new cases of COVID-19 are declining in the U.S. At least that’s what the Center for Disease Control and Prevention (CDC) is telling us.
And second, the vaccine rollout is pretty encouraging. It’s giving everyday folks the peace of mind knowing they’re protected. In turn, that leads people to start living their lives the way they did before the COVID-19 pandemic started.
That’s why we need to focus on back-to-normalcy stocks that are or were thriving before the pandemic single-handedly suppressed a booming economy.
But keep in mind that the first thing that impacts the price of a stock isn’t fundamentals or world events. It’s actually a change in sentiment.
And it accounts for a huge percentage of the price move. Only then after that move — or while that move is taking place — investors and hedge fund managers consider the fundamentals and other aspects of the trade.
That means there’s plenty of time for these back-to-normalcy stocks to trade higher… assuming COVID-19 is going to be history pretty soon… before we get stuck with their fundamental picture in place.
And that’s the best time to jump on the bandwagon, so to speak.
So check out my short video below and let’s talk about the three back-to-normalcy stocks to watch in 2021, and be sure to share your thoughts in the comments section below.
And as always, don’t forget to subscribe to my YouTube channel if you haven’t already so you can be notified as soon as I post my next video!