Investing in Phoenix Stocks Despite Trade Turbulence
The stock market has been volatile, particularly with constant threats of additional tariffs in the on-going trade war. However, there are many areas of the market that in all reality, aren’t being impacted by the trade war. While they may (initially) sell-off on bad news that causes volatility, they quickly rise thereafter. Why is that? It’s because they are Phoenix stocks.
Phoenix stocks and Phoenix industry groups are my favorite areas to focus, particularly for a directional options trader. To make money in the options market, you need to focus on tickers that make greater than expected moves, and outperform the market. Additionally, I like them for long-term growth in my stock portfolios – especially when they belong to industry groups that look to remain strong for years to come.
While I was in New York, I stopped by Yahoo Finance for a segment on my favorite Phoenix stocks and industry groups. Check out the segment below, which includes some of my favorite picks –
After the fact, Daniel Roberts, one of Yahoo’s senior writers, that I was lucky enough to meet in NYC, wrote the following article, and included some of his favorite Phoenixes. Check out the full article, and video clip, here:
Why is Finding Phoenix, and identifying strong sectors of the market so critical? It’s because these industry groups and stocks are the first to bounce back, after volatility. This is what makes them solid buys on bad news, or simply volatile days in the market.
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