Dear Readers, If you've noticed more pronounced price swings in the market lately, that's not just your mind playing tricks on you. After years upon years of relaxed trading, stocks have been jolted out of their slumber. The volatility is a natural byproduct of the COVID-19 pandemic and everything associated with it: a record-shattering economic pullback and sharp recovery, emergency central bank actions, the race for a working vaccine, and assorted political machinations befitting an election year — most notably talks around a new stimulus package. Complicating matters further is that each of the four factors listed above is capable of moving the market on a given day. That's why the Investing team at Business Insider has been on the hunt for guidance from the world's top experts. If you aren't yet a subscriber to Insider Investing, you can sign up here. At the forefront of our research has been what happens in different stimulus scenarios. To that end, one CIO has made it simple and pinpointed the sectors poised to outperform even if a bill isn't passed until after the election. We've also spoken to fund managers who are racing to capitalize on market upheaval. One expert who's adjusting to the new normal of elevated volatility recently offered both strategies poised to outperform, and also single stocks he's buying himself. Another stock-picker we interviewed is scouring downtrodden stocks for hidden gems — and broke down three bets he's making. Meanwhile, Citi's US stock chief is eyeing the upcoming earnings season as the next driver of volatility. He thinks an "unstable" number of companies have bumped guidance higher, which could lead to near-term selling. For more, see below Business Insider's best Investing stories of the week, which include a wide array of additional recommendations, strategies, and tips for navigating uncertainty. Thanks for reading! -- Joe Join Business Insider on Wednesday, October 21 at 2 p.m. ET and hear from three investment experts who will share their advice on how to navigate the election-season peak. Topics will include: investing strategies for protecting your portfolio regardless of who wins the election, the individual sectors and stocks poised to benefit from distinct outcomes, and advice on how to navigate a contested result. Register here. Jerome Myers, the founder of The Myers Development Group and host of the "Multifamily Missteps" podcast, realized the power of real-estate investing after conducting a back-of-the-napkin calculation on the steps of his apartment complex. After being rejected by loads of banks, Myers started fixing and flipping properties with a hard-money lender. When he acquired a business partner, Myers went full bore into multifamily apartment investing, leveraging a four-part strategy. Read the full story here: US SPACs have raised $39 billion year-to-date and accounted for one-third of all US IPO activity since the start of 2019, according to Goldman Sachs Global Investment Research. The frenzy reached the ETF industry when the first US SPAC ETF — the Defiance Next Gen SPAC Derived ETF — started trading on October 1. Paul Dellaquila, president of Defiance ETFs, breaks down why he believes a SPAC ETF can provide retail investors with access to IPOs once reserved only for institutional and high-net-worth investors. Read the full story here: Richard Dennis, a legendary commodities trader profiled in Jack Schwager's classic "Market Wizards" series, got his start in trading by borrowing $1,600 from family. After a sizable loss, Dennis revisited his strategy, which he said was unrefined. He then stumbled upon a trend-following approach and stuck with it. According to Schwager, he eventually turned that initial $1,600 capital injection into an estimated $200 million. Dennis shared with Schwager 13 trading rules that contributed to his success. Read the full story here: Stock pick central Seeking experts who are willing to name names? Look no further: Chart of the week The chart above offers evidence that cries of an overvalued tech sector are overblown. It shows that although tech companies currently makes up a historically large portion of the benchmark S&P 500, they're also contributing more earnings than they were when the dot-com bubble burst. That suggests they're not as vulnerable — and may even be living up to their enormous size. Quote of the week "Investment banks, underwriters and high-net-worth people like Warren Buffett get to participate in hot IPOs like Snowflake and they got in at $120 a share. However, mom-and-pop investors and the average Joe got access to Snowflake at $240 a share and that's just on the first day. So it doesn't leave a lot of meat on the bones for individual investors to pay almost 100% premium on what high-net-worth investors got." — Paul Dellaquila, president of Defiance ETFs, outlining the disconnect at the heart of his firm's recent fund launch, which aims to get retail investors in on hot SPACs |
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