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To Beat The Market Avoid These Two Too Popular Stocks And Buy This Instead – Mike Swanson (08/23/2019)

All eyes are going to be on today’s daily gyrations in the stock market and if you watch the TV they will be talking about Jerome Powell’s speech that begins at 10:00 AM EST, but if you want to be in the best stocks you gotta look at the big picture and not just what happens on one single day of stock market action.

So year to date I looked up the worst performing stocks in the Nasdaq 100.

The third worst performer is now Tesla which is now down over 26% for the year.

Again it is the third worst performing stock in the entire Nasdaq 100, but despite that fact it is one of the most popular and widely owned stocks.

Not only was it a fad stock talked about as a great buy for years on CNBCs by various people until this year, but it is now the 10th most owned stock by the millions of people who have accounts with Robinhood.

Take a look at their list of the top one hundred.

So 162,695 people on Robinhood own TSLA.

But the number one most owed stock is Aurora Cannabis and it too has been a disaster this year being down almost 40% from its high of last Fall.

Most of the stocks in this top 100 list are way off their 52-weeks with the bulk of them down for the year. ACB has been lagging the S&P 500 action since March. But people don’t care who are holding it as they look at daily price action on their app and not a chart like this.

Generally speaking you want to avoid stocks that everyone else you know owns them, because if everyone owns them who is going to be there to buy more shares to drive the price up higher?

This is why buying stocks coming out of stage one bases and in sectors early in bull markets that few own is the way to make the big money.

So while hundreds of thousands of people are in these popular stocks with a half a million people alone owning ACB guess how many people are in the largest and most actively traded gold stock ETF GDX?

The number is 5,357 and only 9,347 are in GLD.

This is why I own GDX and why I have been talking so much with you about mining stocks and hidden gems like Aftermath Silver.

Yes it is strange that so few individual traders are in GDX or GLD when they do so much volume.

The masses aren’t in and totally asleep.

That will change in time and that’s the opportunity in front of you now.

And this is why you should get into my private Power Investor group. To do that go here: