Crazily enough, a bad economy is the best time to build your portfolio.
1 Right now travel is difficult and limited
Airlines-trains-busses-cruise lines are struggling, recreational activities are closed. These areas are very likely going to bounce back.
2 Right now the entertainment industry is getting hit hard
Venue owners, concert promoters, theaters aren’t making money
3 Right now people aren’t buying luxury items
Cars, RVs, and boats dealers etc are not doing business at the volume they were.
4 Right now people are afraid of everyone including their government
Home protection industry and weapons industry is starting to pick up faster
5 Right now technology has taken a backseat to fears
New technology is not in the news as much as fear mongering
6 Right now people are afraid of illnesses
Vaccines are just starting to come out, new medication companies are popping up
7 Right now people are keeping busy even while out of work
Crafts, art, alcohol, marijuana, distance learning, fitness, television technology, is all coming up. The legalization of marijuana on the horizon WILL effect the industry in strong ways
8 Right now depression, anxiety, and sheer boredom is hitting people at a higher degree
Medications, marijuana, alcohol, social media, are all moving
9 Policies may change or stay the same depending on who becomes president
If Democrats get control, some specialized weapons will become scarce, the healthcare industry may change, Marijuana may become federally legalized, the economy will slowly stabilize. If Republicans get control the economy will still stabilize and but the other items may not come to pass.
10 Life has changed in certain ways
Barriers will be used, new industries will arise.
Read articles and current news about the industry, and the individual companies, and also if there is any really bad news about them.
If you use these points for the when and the why and then...
Look at the 52 month report for a potential stock choice . The lowest price and the highest price are the first consideration. The next is current cost compared with highest price. My rule of thumb is that if it hasn’t been at least 400% higher than the current price I would skip it. Also look at parent companies that are doing really well while the child companies are undervalued.
Example: if the lowest value was .05 a share and the highest is $2.00 in the 52 week report and the current valuation is at .10 a share, the industry is a concert promoter who had always made profits in the past. This one you may want to buy 1,000+ Shares and wait out while they’re being affected before sales.
I bought one very similar to the one mentioned. I had read that a large parent company was jumping in value at the announcement of a major medical Breakthrough. The smaller company was a major player in the discovery. I bought at .05 and it was $2.00 a share by the next day. I made the choice to sell half of my stock and purchased several other “promising stocks” based on industry above and that had a potential for a lot higher value in the next year (post COVID recovery).
When Tesla announced a technology that would allow the human brain to connect directly to a computer the price of their child research company jumped from .20 a share to 2.00 a share in one day.
I have about $600 that went into all of these investments. I diversified my portfolio for a better spread (like in roulette) of the potential liabilities. My term for my investments is about one to five years (I’ll be 60 in 5 years). Hopefully when the COVID19 crap is over I will sell these stocks and invest in something else. I’ve been using the E trade app but there are several low cost easy investment apps. My ROI is expected (using the 52 week highs for the calculation) would likely be around $5000+.
