MarketWatch #4

Disclaimer: MarketWatch is for entertainment purposes only. It is important that ALL investors conduct their own market research to determine the best investments for their portfolio. Please do not blindly follow me or any random person on the internet, there are professionals for that. MarketWatch is intended to give you insight into my investment portfolio and my analysis of each investment that is discussed. Please feel free to share any comments or questions below.

The first month of 2021 is already coming to an end! I hope you’ve held on to those new year's resolutions and gained some positive momentum.

With new leadership in the white house, we have already seen the stock market and economy exhale. Stocks that once looked like falling knives have started to flatten out and we look poised for stability soon. This week, I want to take some time to distinguish the difference between stocks that are overhyped and stocks that actually deserve that hype.

Overhyped

GameStop (GME): Let’s kick this off with the brick and mortar gaming store that has been surging as of late. Up more than 300% since last month, GameStop looks ready to take over the world. But before you start selling off your Apple shares, let’s consider some of the news around this recent surge. Here is the list of recent news that could be causing this rally:

1. N/A

2. N/A

3. Reddit

Yep, that’s all of it. When a stocks’ movement seems too good to be true, it likely is. GameStop has been on the decline as a company for a while and investing in the company simply because of their share price moving up, is not a good investment. Always remember: Invest in companies, not charts.

Blackberry (BB): Similar to GameStop, we saw a surge in Blackberry’s stock yesterday, but there was nothing that caused it. I know this is true because the company made a statement that they had no clue why people were investing in their company. If you’re going to make an investment in a company that is clearly doing poorly, please understand that you are taking a gamble that could cost you the entire investment. When a stock goes to zero, there is nothing to pull out of that investment, you just lose your money.

Please don’t throw away your money, I write these posts every week to help people grow their portfolios. There will always be random stocks that soar for no good reason, then fall to a bankrupt demise (ie. Hertz, Kodak). There is an illegal strategy called pump and dump, this is where a group of people will encourage investors to purchase a stock to inflate the price. Then, all of a sudden, everyone will sell that stock off and it will crash to zero. Please stay away from these investments!

My suggestion: Invest in the winning stocks, not the ones with potential. Potential is unrealized and when it comes to money, that potential doesn’t do anything for your bank account.

Worth the Hype

Now, here are 5 stocks that are worth the hype and your investment. Do your own research, of course, but you are likely already familiar with these companies. I have said this time and time again, invest in companies who make products that you own and that you trust. Those will prove to be the safest and most lucrative stock market investments.

1) Microsoft (MSFT)

2) Johnson & Johnson (JNJ)

3) Coca-Cola (KO)

4) PepsiCo (PEP)

5) Activision Blizzard (ATVI)

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