It seems the short-squeeze hype is dying down, and those stocks are all taking a dive. Instead of leaving you holding the bag, Joy of the Trade’s Jeff Zananiri and I have some simple stock picks for you.
Don’t overthink it.
On Monday, Jeff discussed how the GameStop Corp. (NYSE: GME) short squeeze was not a simple case of everyday traders banding together. This was an orchestrated plan by pros who probably had inside information.
And guess what? The masterminds behind it are the only ones who profited.
We would caution people to be careful of giving into FOMO with this. Massive short squeezes like GameStop’s aren’t consistent ways to make money. Look for value and simple stock picks.
So let’s move on and look at the stock market right now.
Don’t Overthink These Simple Stock Picks for 2021
COVID-19 still exists, but the stock market is looking far ahead still.
Last year, we saw lines out the door of people trying to buy toilet paper. Then we saw stay-at-home stocks take off at incredible rates.
Now they’re not doing so well. That could be because they got too hot, but the stock market seems to be predicting normalcy.
If 2020 taught us anything, it’s that you can never know what’s going to happen. And we don’t like trying to predict the future, we like simple stocks that are going to make money.
And those exist. There are several sectors that are ready to go regardless of how long this pandemic lasts.
Stocks like Workhorse Group Inc. (Nasdaq: WKHS) are in a perfect position. With President Joe Biden wanting to replace the government fleet with electric trucks from an American company, Workhorse is the only company that qualifies. A simple stock pick.
Cannabis is in a great spot as well with the Democratic administration likely to federalize it.
If you’re like us, you’ll want to keep your trades simple. Check out Jeff’s and my video on some simple stock picks for 2021 and get up to date on the markets in our mid-week roundtable.