Why The Naysayers Are Wrong About America
The “naysayers” would have you believe the world is ending. Just take a look at these recent headlines:
I learned long ago to tune out messages like these. You should take these messages you hear on CNBC or CNN with a grain of salt. It’s all just noise designed to scare you and keep your eyes glued to the TV.
Their #1 goal is to irritate their audience into a constant state of mild panic. They trumpet bad news and downplay good news to boost ratings.
That’s why I prefer to look at the world through stock charts. That might seem like an odd thing to do, but stock prices don’t lie. They don’t have an agenda or political bias. Instead, they show what investors are really doing with their money.
Right Now, The Behavior Of Advertising Stocks Tells Us There’s An American Boom Going On
Here’s The Trade Desk (TTD). It’s up 114% this year, having recently broken out to fresh highs.
Not only does spending on advertising follow economic growth very closely, it’s also very “sensitive.” Ad spending is one of the first things a company will cut if it’s worried about the future. And companies only expand ad spending when they’re feeling good about their growth prospects.
Here’s advertising software pioneer Digital Turbine (APPS). It’s soared 215% in the past three months alone!
If the economy were really on life support, TTD and APPS would be plummeting, not soaring. Google GOOG (GOOG) and Facebook FB (FB)—the two biggest advertisers on the planet—would be breaking down, not breaking out. Roku (ROKU) shareholders wouldn’t be sitting on a triple since March (Roku is moving into streaming advertising).
And look, there’s no denying the COVID lockdowns sucker-punched American businesses. A lot of people are still struggling, and I feel for them. But I don’t think Americans get nearly enough credit for how resilient they are.
This “Boom” Pattern Is Evident In Small Business Stocks, Too
Look at mobile payments company Square SQ (SQ). It makes those little white boxes that plug into your phone to swipe credit cards. The tech has been a godsend for small businesses. It allows a one-man shop to easily take digital payments at the local farmers market or fruit stand. The stock’s up around 325% since March, and just hit an all-time high:
Same story with Shopify (SHOP). It helps mom and pop stores easily sell stuff online. Did you know businesses with a presence on Shopify recouped 94% of all sales lost due to COVID with online orders? Talk about resiliency! Shopify stock has soared more than 200% since the lockdowns:
And this is far from just a “tech stock” story. Home Depot HD (HD) and Lowe’s (LOW) are about as low-tech as it gets, and both of their stocks are roaring. They just broke out to all-time highs, up 66% and 142% since the March bottom in stocks. This is a full-fledged American boom.
We’re Also Seeing a Whole New Class Of “Hypergrowth” Stocks Growing Like Crazy
As you know, what’s happening right now is truly unprecedented. Specific hypergrowth stocks are shooting up 200%, 300%, even 400% in a matter of months—sometimes weeks.
And the sad part is 99% of investors don’t hear about them. Again, that’s because the media would rather focus on the bad news and the “losers” of the stock market instead of all the new industries reinventing themselves before our eyes.
How about some recognition for American businesses? To me they deserve 100% of the credit. I mean, everything’s totally changed in the last six months. How we work, how we exercise, how we see the doctor.
Without companies like Zoom (ZM), Peloton (PTON), and Teladoc TDOC (TDOC), that never could’ve happened. Their stocks are up 698%, 334%, and 166% this year alone.
Make no mistake: The American economy is transforming—and growing!—before our eyes. It’s an exciting time to be an investor. There’s so much opportunity in fast-growing stocks available today.
The big stock gains I just cited came fast, within months. If you hesitated you missed them. The “old way” of investing doesn’t cut it given how fast things are moving today. Unlike most stocks, being off by even a day or two could cost you thousands or even tens of thousands of dollars.
If you’re interested in trading hypergrowth stocks on your own, I have 3 “golden rules.”
- Take profits as they come, and consider “rolling” part of your profits into the next trade.
- Let your winning trades run, and cut your losing trades early.
- Look for “asymmetric” setups where your profit potential is at least 5X greater than your risk
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