Summer is around the corner. For most savvy investors, it is time to review their stock portfolio and eventually change the mix. With all the sectors, except perhaps energy up, investors may be faced with dilemma: buy more or diversify? In fact, most economic indicators point to a continued momentum in the second and third quarter. April New Home Sales, April Pending Home Sales , and April Durable Orders all beat expectations. Even the indicators that missed, such as GDP growth, did not by much. One caveat is the much anticipated decision by the FED to raise interest rates. It may be possible that the
stock market has factored in such possibility. If that is the case, Summer may present a good opportunity for those already invested or ready to do so. But, there may be a catch.
In recent markets trends, shares of most valuable companies have been rising. The sustained momentum has created situations in which only institutional or very wealthy investors have been buying these stocks. According to Business Insider, "Too many stocks are priced at more than $200 a share, and that's a problem for market participation, Individual shares of stocks have much higher prices than they used to, discouraging retail investors and reducing the volume of shares changing hands, according to Chris Concannon, the CEO of Bats Global Markets."
This situation may have pushed some small investors out of the market, while creating opportunities for long term investors, as speculators may shy away from pricey stocks. Now, if large stocks were to split to allow small investors to come into the market, Summer may turn out to be a good season for investors. According to AroniSmart "The persistent weaknesses in the international oil markets, the slowing Chinese economy, the never ending Middle East wars and refugee crisis and the growing uncertainties and sometimes chaos in once promising developing economies, such as Argentina, Brasil, Venezuela, and South Africa, Angola, Saoud Arabia, and Nigeria remain major concerns, but it appears these too, have been factored in by savvy investors."
Meanwhile, for small investors, the question is what stocks to invest in? AroniSoft, LLC an data mining and technology solutions company selling the line of market data mining tools known as AroniSmartInvest™, has indicated a sample of the few affordable stocks that may present potential investment opportunities for small investors. Investors who own such AroniSmart tools may find other promising stocks to invest in.
