Hello everyone 🌟
I hope everyone is doing splendidly! I have been diving deeply into the markets, analyzing trends in order to validate our strategy, which I believe could really boost the portfolio in the coming months. As your eToro Popular Investor, my mission is to not only keep us on a profitable path, but also to ensure we are all informed and moving forward together.
So here’s a little taste of what’s going on in my investment kitchen:
Predictions:
📈Stock Market Rally:
I’m expecting the stock market to keep its momentum, mainly driven by the anticipation of interest rate cuts without a recession in the US. This creates a favourable environment for equity investments, especially if you’re focusing on momentum.
🚀 EPS Growth:
Analysts are pointing towards an acceleration in EPS (Earnings Per Share) growth for the S&P 500 in the second half of 2024, with a projected annual growth of 11.4%. For me, this is a positive sign, suggesting that companies with strong potential for profit growth could be particularly lucrative.
🌱Rising Sectors:
I’m keeping an eye on sectors like EMS, Real Estate, Energy Storage, and themes related to recycling and water. These areas are being highlighted for their growth potential. Additionally, technology, especially with advancements in AI, remains a focal point for investment.
Strategies:
💨Invest in Momentum:
My approach to momentum involves investing in stocks that have shown strong recent performance, with the expectation that this will continue. I rely on technical analysis tools, such as moving averages and volume indicators, to identify these trends.
🌟Long-Term Growth:
Even though I’m focusing on momentum, I don’t neglect long-term growth. I look for companies with a clear path to profit growth over the next 3-5 years. This means paying attention to solid fundamentals, not just recent price movements.
🔍Diversification:
I always make sure to diversify across sectors, even within a growth and momentum strategy. Including stocks from different sectors that show signs of growth helps me balance my portfolio and mitigate risks.
👀Constant Monitoring:
Momentum investing requires me to keep a close eye on the markets. I use trading platforms that offer robust technical analysis and real-time updates to stay informed.
⚠️Risk Management:
I believe in having a clear exit strategy. I set stop-losses to protect myself from sudden market reversals, ensuring that I can exit positions that don’t follow the expected momentum.
📊Sentiment Analysis:
I also use platforms like X to gauge market sentiment, which can provide valuable insights. However, I make sure to filter the information carefully and avoid being swayed by unfounded rumours or speculation.
🔬Focus on Innovation:
I focus on companies that are at the forefront of emerging technologies or are innovating within their sectors. I find that keeping up with news and developments in areas like AI, renewable energy, and biotechnology is particularly profitable.
Final Considerations:
🌪️Volatility:
I know that growth and momentum can come with volatility, so I’m prepared for fluctuations and have a strong stomach for risk.
🔄Continuous Research:
I make it a point to stay informed with analyses, company reports, and economic news. The market changes rapidly, so I continuously adjust my strategies as needed.
Untill next time,
Santiago
