Many people are buying into this current stock market rally and many of them are people who have gotten into trading for the first time this year. These people have been drawn into the market by the March stock market plunge, free trading commissions, and free time on their hands. I have a Robinhood account so I can see what the most popular stocks are on there that people buy. Here is snapshot of some stocks among the top 100 most owned stocks on there.
Notice NCLH. As of Friday’s close 365,411 people on Robinhood own this stock. This stock is actually the worst performing stock in the entire S&P 500 so far year to date!
Here is a chart.
This stock remains well below its 150 and 200-day moving average and even with its move above $7.50 still is the single worst performing stock in the entire S&P 500 this year.
To beat the market you want to be in the sectors and stocks that are beating the market. That is just one reason why NCLH is a bad stock to buy now.
What is a good one?
Consider mining stocks. Big cap mining stocks have been among the top performing sectors in the whole stock market and the right small cap mining stocks have simply soared. That’s what my stock pick for this month is all about.