What Stocks To Buy Now

This article will help you consider the right stocks to buy now. It doesn’t seem too long ago that the stock market crashed, falling over 45% in a matter of a few short months. That was in late 2008 into early 2009. Since the bottom in early March of 2009, the stock market has been on a tear. It has gained over 60% in one year, which is the type of gain that is usually seen over the course of four to five years. While only a lucky few bought at the bottom, many people have been making money in stocks. The Dow is still several thousand points off its high. However, it’s also several thousand points off its low. With ongoing questions over whether or not we will have a double dip recession swirling around on a daily basis, it’s difficult to predict what the future holds – for most. Some say this is the beginning of a new bull market. Others can make a strong case that we still haven’t exited the recession. The following information should help steer you in the right direction.

Before we go over the basic economic conditions, let’s first keep in mind that the stock market has a tendency to overshoot on both the upside and the downside. This is a big reason why people lose money. They’re unable to comprehend why logic isn’t leading to profit. Once they finally decide they must have been wrong, they sell what was about to be a winning position. Keep a long term approach in mind as we look at the economy. Then, we’ll look at what are the best stocks to buy now.

To put it simply, it’s difficult to have an economic recovery without job growth. The primary reason Wall Street has responded so well to economic conditions in the past year is because things have been less bad, not good. With the government de-leveraging, baby boomers halting on their spending, and home prices continuing to decrease, it’s tough to imagine the stock market performing as well in the near future as it has in the past year. But that’s not necessarily bad news. There are ways to profit regardless of what direction the market moves.

If shorting the market is too risky for you – shorting a stock requires borrowing money which can lead to a margin call – then you should consider a safer alternative, which are short ETFs. These ETFs go up when the market goes down. There’s at least one for every sector. This includes financials, energy, technology, oil, and much more. You can even short commodities. Many people will complain about expense ratios, but the potential gains in these positions greatly outweigh those expenses. That said, they are high risk investments. It’s best to put stops on your positions to avoid getting hurt.

But what if you’re the type of person who doesn’t like to bet against America? If that’s the case, no problem, there’s still a long list of good stocks to buy now. The first place to look for stocks in potentially dangerous waters is biotech. These stocks don’t respond to the overall movement of the market as much, and they have the potential to rise thousands of percent in one day. Those are rare cases, but they do happen. A biotech stock doubling in a day is not out of the ordinary. Just be careful, as they can also move with that much ferocity in the other direction. You have to have a good idea of what you’re investing in. Speaking of which, let’s look at two great biotech stocks to buy now.

The first stock is CYTX, Cytori Therapeutics. This is a relatively new company with an incredible future. With Cytori, it’s not a question of if, but when. The only problem is that nobody knows how long that ‘when’ will be, so they tend to jump in and out of the stock on a regular basis. Cytori is basically a stem cell company that uses adipose tissue to fix other problems. A procedure they offer in other parts of the world, and possibly soon in the United States, is to take adipose tissue from a woman’s body and use it for breast augmentation. It’s a safer, more natural, and better looking alternative to breast implants. Farther down the line, Cytori is also working on helping those who have predisposed conditions for heart disease. It’s possible Cytori will end up saving many lives. If this takes off, the sky is the limit.

The other biotech stock to consider is SNTA, which stands for Synta. They improve the quality of life for those with terminal illness. This is done via pharmaceuticals. They also have a Phase II drug that could end up helping tremendously for those with rheumatoid arthritis. A good hint to their future prospects is that many insiders began buying loads of stock on January 8, 2010. This is often a good indicator of future success. The stock has also been unfairly beaten down in the past year. It’s an excellent low risk, high reward investment.

The information above is to be seen as ideas, not recommendations. It’s hopeful that you can profit off at least one of them.