TipRanks
Buy These 2 New Stocks Before They Jump Over 80%, Says JPMorgan
In the past week, investors have had to cope with multiple conflicting signals from the markets. The April jobs report, which was expected to show almost 1 million new positions for the month, showed only 266,000. The official unemployment number ticked upward slightly to 6.1%, and hourly wages also gained – by 0.7%. That last would seem to be a positive – except that, combined with the massive government stimulus injecting cash into the economy – higher wages are seen as a portent of inflation. At first glance, it seems like an environment that would have investors cautious. Except – the Fed has signaled that it will not be winding down its easy money policies. Low interest rates have helped to fire up the bull market engine in recent years, for two reasons. First, it keeps the cost of credit low, making it easy to leverage all sorts of purchases – cars, homes… even stocks. And second, with rates low, bond yields have been unable to make any significant rise. For investors seeking a return, this makes stocks the place to go. It also creates an environment that’s conducive to IPO events. Markets have been on a steady, long-term upward trend for months; the S&P 500 has gained 44% over the last 12 months. With a return potential like that, it’s no wonder that companies are turning to the public trading markets to raise capital. When it comes to equities, a rising tide truly will lift all…
