Steve Sosnick, Interactive Brokers’ chief strategist, discusses Tesla’s meteoric rise in the market.
Shares of the luxury electric vehicle maker have advanced a sizzling 15% early in 2020 as of January 9.
This rise may be attributed to many factors, but short covering is behind some of the explosive performance, according to Sosnick.
Photo Credit: Ray via Flickr Creative Commons
Buying low-beta stocks with sustainable dividends can work in the long-term. And the high-beta stocks may be best for a swing-trading strategy.
If you want to be like Warren Buffett and be greedy when others are fearful, the level of continued market apprehension may make the case for buying stocks.
A decline in inflation would be advantageous for fixed-income securities, and a soft landing with lower interest rates will benefit equities, particularly those more reliant on the capital markets.
A weakening consumer likely leads to stagflation, with the credit card situation at small banks rising to the loftiest level in history, and a potential government shutdown serving a severe blow to what’s left of consumer resilience.
