There’s been a reversal of fortunes in the stock market in terms of what’s attracting investors attention right now.
It’s the first time since February that the non “stay-at-home” stocks have been leading the way. In the short-term and based on momentum studies, the technology sector has also been overdone for about a month…
So, what should a traders strategy be for allocating their capital in the market going forward?
Answer: Cool off on individual tech stocks and diversify into ETFs. ETFs lower your exposure and risk across several assets but allow you to profit if there is another run-up in the market. Below are the top 3 ETFs we are currently watching:
1… CLOUD COMPUTING ETF (NASDAQ:WCLD): Almost everything in the digital world is connected to the cloud in some form. All the tech giants and startups are using cloud computing and it will become an even more integral part of our daily lives.
2… CLEAN ENERGY ETF (BATS:ACES): Recent renewable energy advances indicate a fundamental shift in the U.S. energy system. Forecasts predict 80% of America’s energy needs can be fuelled from clean energy by 2050. Therefore, we expect the clean energy revolution will only pick up more “steam” moving forward.
3… DISRUPTIVE TECHNOLOGIES ETF (BATS:DTEC): A collection of stocks that are still in their ultra-growth phases. These particular companies dominate their own niche and don’t have much competition.