4 Coronavirus Penny Stocks To Watch Before Next Week
It’s safe to say the coronavirus penny stocks are a major topic of conversation right now. It seems like the more we try to find a reason to avoid it, the more it becomes a focus. But for traders, that hasn’t been a bad thing at all. If you remember back when the “Wuhan Flu” turned into “coronavirus” back in January, we saw the early makings of a niche market boom. It started with biotech penny stocks and then evolved into a more speculative play on things like food delivery, grocery stores, shipping companies, and even a few pot penny stocks made the early list.
So, where are we now? It seems like thee hype sectors go through phases. First, there’s blind hype buying, then there’s buyer’s remorse when stocks plummet back down, followed by the “educated investors” who actually start researching before jumping in. After this last phase, the market needs to make a decision. Will it continue trading on hype as the focus or is there really something to it?
We saw this a few years back with bitcoin and cryptocurrency but that ended up fizzling just as the “education phase” tried to begin. On the other hand, during the early days of pot stocks, I think it’s safe to say that we’ve seen a full circle lifecycle. Now it’s coming down to a more fundamental approach than anything. But I hope you see my point.
While much of the quick gains are seen early based on hype-fueled momentum, the next few phases may offer a longer-term strategy. No matter your taste and preference, coronavirus penny stocks have seen their fair share of big wins and losses. Heading into the rest of the month, there are still many that have pushed higher after some initial profit-taking.