A couple of weeks ago, Joy of the Trade’s Jeff Zananiri recapped a wild November. Today, we want to look at the stock market in December.
I sat down with Jeff for our mid-week roundtable and we talked about the week so far and our expectations for the rest of the year.
The big news this week comes with the DoorDash Inc. (NYSE: DASH) initial public offering. The food-delivery company is primed for a huge year with the continued surge of COVID-19.
That’s why they appeared on the stock market in December 2020.
DoorDash couldn’t have planned this better — getting its debut in before we begin an uncertain 2021. With the election over and the pandemic being beat to death, the company’s IPO is the news of the month.
The Stock Market in December: End the Year on a High Note
“You’re never going to make your year in December, but you can lose it.” That’s the advice Jeff received from a mentor of his when they were discussing trading the stock market in December.
That’s the mentality that Jeff, and many other portfolio managers, take toward the end of the year.
That’s especially true this December with the Nasdaq still setting new highs and the stock market trending upward.
On the other hand, with the end-of-year initial public offerings, it’s evident that people want risk. They want to take advantage of the bullish market we’re in.
Jeff would rather not take any big swings and strikeout, ruining the incredible returns we’ve seen this year.
What Goes Up… Looking Past 2020’s Stock Market
2020 was a volatile yet bullish year. We’ve seen the Nasdaq tech stocks soar and everyone wants the next “super-growth” stock.
Now, history may not always repeat itself, but it does rhyme.
We saw this in the late 1990s, when stocks like Cisco Systems Inc. (Nasdaq: CSCO) and Oracle Corporation (NYSE: ORCL) were the top stocks out there.
A couple of years later, we saw the rise of some random website stocks that ultimately made no money. The bearish market followed shortly after.
Jeff takes that as a cautionary tale.
Sit in with Jeff and me at our virtual table to hear our thoughts on DoorDash, the stock market in December and some solid advice for trading in 2021.
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