Pitchmen (and pitchwomen) are in full swing and are selling the next revolution: 5G mobile communications.
The train leaves the station and the jetties must now jump on board – that is the typical playing field.
Are your skeptical antennas rising? They should.
Selling “revolutions” works when stocks are in an uptrend. As you know, benchmark indices – the Dow Jones Industrial Average
DJIA, + 0.29%.
S&P 500 index
SPX, + 0.70%
and Nasdaq Composite
COMP, + 1.04%
– are at record heights.
Investment advisors get more clients, brokers get more business, investment newsletters get more subscribers, and media get more advertising. After all, the next 5G revolution is just around the corner. No investor wants to be left behind.
Before I name 10 5G stocks that are included in The Arora Report's portfolio, let's use a chart to create the background necessary to understand this next wave of tech investments.
Click here to view an annotated table from Nokia
NOK, + 1.00%,
Note the following:
• The graph shows the times when Nokia was highly praised as a 5G share.
• During this time, I received regular requests from investors why the Arora report did not recommend Nokia. Some investors felt we weren't up to snuff because we missed the great opportunity to buy Nokia.
• The graph shows that investors who gave in to the pitch men lost half of their investment.
• The graph shows the recent purchase of Arora at $ 3.33 when Nokia fell into the Arora buying zone after a 50 percent slump.
• Nokia was one of the stocks in our January effects list. The January Effect is a proven strategy to potentially achieve up to 30% in three to four months. For more information, see “How to Use the January Effect on the US Stock Exchange”.
• The preliminary plan is to hold Nokia longer than other January Effect stocks due to 5G.
• The Nokia stock shows how dangerous it is to give in to the pitch men and succumb to the intoxication.
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The real catalyst
Currently, the pitchmen of 5G stocks are the heroes of investors. But investors don't realize that it is their own Buying 5G stocks that are causing the surge. Are the Pitchmen geniuses in stock analysis or creating frenzy? Pitchmen are certainly geniuses when it comes to generating the intoxication.
Ironically, this time is very different – usually pitchers work in less known stocks because they are easier to pump. If you've been around for a while, you know firsthand that sometimes "pump" is followed by "dump". Now the largest pump in the largest inventory – Apple
AAPL, + 2.14%
Much of the increase in Apple is due to the 5G pitch. Apple is expected to launch a 5G phone later this year. The price of the phone is expected to be $ 1,200. 5G not only brings a new mega upgrade cycle for Apple iPhones, but can also dramatically increase service revenue for Apple. The Arora report has been in Apple's portfolio since it hit $ 18.73.
On October 23, prior to the company's earnings release, the Arora report raised Apple's target zone to $ 325-365. To my knowledge, this was the highest goal at the time. For more information, see "The next milestone for Apple stocks is $ 320 as a crucial transition is in sight." This shows in part the performance of 5G.
How and when to buy
Should you hurry to buy 5G shares like Apple now? The answer is a breeze. This stock market is controlled by the momo (momentum) crowd. If you are a proud member of the momo crowd, it makes sense to buy 5G stocks with the most momentum. Momentum can move stocks higher than you would expect.
However, if you're a prudent investor, the answer is completely different: don't buy these stocks now.
Here are the reasons to ignore the bad guys:
• 5G is a multi-year opportunity. There will be many options with less risk.
• Sentiment on some stocks is slowly approaching an extreme. In extreme cases, the mood is an opposite indicator. In plain text, it is a sell signal when the mood reaches an extreme.
• Some of the 5G shares are technically very overbought. When stocks are heavily overbought, they tend to be prone to downward moves.
• The 5G rollout may not go as quickly as investors expect.
• The pending profits in many of these stocks are likely to be below the whisper numbers.
• In addition to long-term investment opportunities, there will be many short-term trading opportunities.
Prudent investors should wait for the following before buying these stocks:
• Withdrawals in Arora shopping areas.
• New technological developments related to certain companies.
• New triggers based on the result.
• New triggers based on new products.
• The mood becomes very negative.
• When momo crowd money flows are negative, smart money flows are positive. Please note that something rare happens among the popular technology stocks.
The 10 shares
There are several stocks and ETFs in The Arora Report's portfolios that will benefit from 5G. Here are the top 10 5G stocks that are diversified according to different strategies.
• Applied materials
AMAT, + 0.55%
CIEN, + 1.80%
NOK, + 1.00%
• NXP Semiconductors
NXPI, + 1.80%
QRVO, + 2.05%
QCOM, + 0.79%
TMU, + 0.51%
Disclosure: Subscribers to the Arora Report may hold positions in the securities mentioned in this article or take positions at any time. Nigam Arora is an investor, engineer and nuclear physicist who has founded two Inc. 500 fastest growing companies. He is the founder of The Arora Report, which publishes four newsletters. Nigam can be reached at Nigam@TheAroraReport.com.