As the vaccine roll-out continues world-wide, Wall Street is taking a break from the “GameStop Saga” and what some are calling the “Reddit Rebellion” to look forward and ponder which stocks will begin to increase in value post coronavirus.
Today, one of my favorite financial minds/entertainers, Jimmy “Chill” Cramer on CNBC called them “Jab Stocks”. With this in mind, it’s a good idea to listen-up and start making a list of these “Jab Stocks” and start planning for some LEAPS.
If you are not familiar with LEAPS, just know for now that when you make a long option trade where the expiration is a year or more away, that’s a LEAP. You are going long with your option and what better time to plan for some of these in your portfolio. Some examples include airline stocks which have been beaten-up as have cruise ship companies. Movie theaters and anything that spells entertainment has either gone out of business or got very close.
Once a “new normal” regarding not only this COVID-19 pandemic but all things pandemic moving forward is established, then these “Jab Stocks” are good candidates for growth. Along the way, don’t get swept-up in the rhetoric (both positive and negative). Focus on where they were pre-pandemic along with business fundamentals and then GO LONG with a LEAP or two.
Note: New investors have and will always been welcomed to Wall Street with open arms. Read your favorite on-line blogs, however get your investment advice from those with a great investment track record. One of the best books to read is ONE UP ON WALL STREET by Peter Lynch. Lynch ran the Magellan Fund at Fidelity Investments between 1977 and 1990 and averaged an astounding 29.2% annual return. Using the “Rule of 72” also something good to learn . . . just divide your annual return into 72 and that’s how many years it takes to double your money. In Lynch’s case, that means your investment would have doubled every 2.5 years. So, $250,000 would have grown to over $8M during that short sprint of time.