London, England, 2 June 2021, ZEXPRWIRE, We’re going to be taking a look at the top stocks to buy now in May, along with brief market updates and news that comes with a little bit of detail in this article. The broker from TrueNorthBit advises the new traders that you can’t just look at a ticker symbol, buy it at any random point in time and expect to make money. Pay attention to the analysis and the DD that is way more important than the ticker symbols; if it conforms to what you think about the stock with your conviction on the sock, then great if not, then hey! We can agree to disagree, but don’t just childishly look at a ticker symbol and think that you can buy it whenever you want and that you’ll make money. As said earlier, please pay attention to the analysis; the company itself is more important than the ticker symbol itself.
What is happening in the Stock Market?
OK! So let us jump right into the stocks in the market that are worth noticing. First, in terms of what’s going on in the markets at a macro scale, we got to pay attention to the US 10 year treasury or the Treasury bond yields. These continue to drop, which is partly why the stock market continues to go up. In summary, especially for those new to the market, when we see the bond yields drop, that leads to higher stock prices. Especially in traditional growth companies of which mega-cap tech stocks are a part. This is why the NASDAQ is continuing to rip day after day for the last week.
Last Friday’s report by the US Bureau of economic analysis showed that American consumption increased by 4.2% in March. Thus, Americans continue to have a high appetite for durable goods. However, there is a limit on the supply chain due to the COVID pandemic and the incessant money printing driving inflation fears.
Now Papa J Powell reiterated that any increase in inflation above 2% will be transitory, meaning temporary, and won’t negatively affect the economy. However, going into next year, we have to start being fearful, and part of the reason why analysts said that they think the Fed will be forced to at least think about raising rates next year could cause an imminent crash in the stock market.
However, two pieces of good news is that more than 50% of US consumers expected to spend extra by splurging or treating themselves right and will get into this with the stock picks. There is also an upcoming infrastructure plan that has not yet been passed; it’s going back and forth between the Republicans and the Democrats in the government. So, in short, the broker from TrueNorthBit expects the stock market to continue higher for 2021. Although as analysts stated before, year two of the bull market will not be as violent as your one. The broker also doesn’t think it’ll be a straight lineup like analysts saw in 2020 but more so a choppy gradual uptrend. There are extraordinary dip situations on US indexes such as the NASDAQ, the Dow, S&P 500, and the index-based funds associated with those indexes.
What’s up with Bitcoin?
In terms of Bitcoin news, if you put $1000 a month for the last nine years in Bitcoin, you would have almost $62 million right now. Yes! Really. But Bitcoin is in a full-on crash right now from the height of the low, losing about 55% of the value before bouncing up nicely. Elon Musk supposedly met with a conglomerate of North American Bitcoin miners. As analysts stated in one of their Elon Bitcoin news, that Tesla would eventually or Elon eventually come out with a more renewable method of mining Bitcoin and accepting Bitcoin again. Of course, Twitter will rejoice, and traders will likely see Bitcoin’s price shoot up.
Regardless of all this mess in the broker’s view, it would help if you continued to buy the dip on Bitcoin and dollar cost average incrementally again. Even with inflation, the chip shortage, and whatnot, brokers still think that the recovery theme is rotating into value stocks and picking up cheap growth stocks on the dip. Growth stocks are traditional growth stocks like NASDAQ-based mega-cap tech stocks. So that should still be the cornerstone of trader’s portfolios even if they engage in risky hyper-go stocks from time to time.
Disclaimer: Our content is intended to be used for informational purposes only. It is imperative to do your research before making any investment based on your circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether to make an investment decision or otherwise.
Source: TrueNorthBit Broker