Knowing the current trends in the stock market is essential for the safe and profitable allocation of your funds. These trends can be anything from new consumer behaviors that are pushing demand for new goods/services to technical indicators that are clocking in consistently improving/diminishing numbers. Right now, here are the top three stock market trends to watch out for.
As the public becomes more aware and involved in environmental issues, more companies are exploring sustainable alternatives to traditional goods, including meat. Various studies involving modern agricultural practices paint a disconcerting reality about how precious limited resources are being spent. In addition, ethical concerns about how animals are treated in slaughterhouses and farms are a major issue. As a result, fake or imitation meats are becoming more popular. Leading the charge is Beyond Meat Inc, a plant-based food company that manufactures and sells their product globally.
Food Stocks and Panic Buying
Due to the ongoing viral outbreak, people are stockpiling on essentials, including food, water, toiletries, etcetera. This panic-buying knee jerk behavior has helped companies, like Target and Walmart, bump up its share prices several points since the first quarter of this year. Target, for instance, was playing around the $100 level in March and is now around $150 per share. That being said, the costs of these businesses have also gone up at the weight of wage hikes, protective equipment for their employees, and retail store alterations to curb the risk of infection. These should also be factored in when figuring out entry and exit points.
Failing Tech IPOs
The catastrophic IPOs of ride-sharing companies, Uber and Lyft, last year were apparently only the beginning of more tech-related IPO failures to happen this year. Tech companies that went public and came up short this year include ZTO Express, Genuity, Shanda Games, and CIT Group, to cite a few. From a bearish investor’s viewpoint, this can be the beginning of a long-term downtrend and a signal to load up on short positions.
Keep in mind that these trends aren’t, by any means, a direct signal to trade a financial asset in either direction. You’ll want to supplement these big picture market snapshots with your own meticulous research rather than just blindly following the herd.