Summer Potential Bargain Opportunities in the Resource Market
By Ellis Martin
Stock market trends are very often cyclical, as cyclical as the seasons and frequently tied to them. Summer is practically here and after a healthy winter and spring rally for many stocks there are those investors that are cashing out some of their profits in the market. Why shouldn’t they?
Well, if stocks are up and there is no company news pending on the immediate horizon, isn’t it time to sell at the time where many others divest and liquidate some of their holdings? This is what many retail investors with various levels of sophistication may believe, especially as they plan their own summer vacations. This is why every year certain public sectors trail off a bit during the summer. Profit-taking and summer vacation. Exotic summer vacations are expensive.
If you’ve been sitting on this fence about a certain stock that you are watching and you like the company basically, now might be the time to accumulate some of their stock, if that’s your choice. You might take a look at several companies that you’ve been watching, not just one and accumulate potential summer bargains. As diligently as these public companies look after the assets of their business, they prepare toward the end of the summer to release news and prep the market in order to increase potential shareholder appeal. Their goal is to attract shareholders. It is also the duty of company principals to do so. As most investors with liquidity return from their own summer vacations, the more sophisticated will have already planned their investment strategy for the fall. They will be accumulating stock that they believe may rally again in the fall, as it may have done so the previous fall, winter and spring. It is cyclical indeed. These same investors are most likely looking also for new companies, recently listed with seasoned principals and a board of directors planning growth strategies to be executed in the fall. I know of several who have every intention of doing all possible to see that what they are doing produces results in the market beginning in the fall. It’s all about timing. Some of those companies will probably come on the air with us during that time period as part of their marketing strategies in the US. These things are cyclical.
In addition to profit taking just before the summer, you’ll often see it around the winter holidays as well, for similar reasons. Company principals then prepare for big pushes in the market in mid January, to last until May or June. Well, we are here and needless to say there will be a plethora of summer potential buying opportunities in the market. If a stock has come off significantly in the last few weeks and you find the company to be solid and strong, with real assets, a great management team and a decent float, consider accumulating or adding that company to your own portfolio. I won’t suggest who to add. I’m one of the few who won’t. It’s your job as always to do your own research and find out what might be the best risk for yourself. Shop when the bargains are best and you may receive greater rewards when the market eventually rallies again in the fall.
