It is important to have an investment strategy as an investor, because there is no one share that fits into every portfolio. It depends on your risk tolerance which stocks you invest in. Investors should also look at factors such as earnings growth, stability, dividend yield and industry to see if the stock fits into the portfolio. It is important that you are convinced of the stock and do not panic and sell your shares at the first drop in the share price.
Yesterday commodity stocks were trending, tomorrow it will be cannabis stocks. Many investors buy what is currently trendy and follow the herd instinct. This kind of investing is more like gambling in a casino than rational investing. Of course, fashion stocks can lead to high returns, but unfortunately it can go just as quickly in the other direction. Most of the time, these trend stocks are overpriced and do not generate long-term profits.
Just because a stock falls does not mean it is now worth buying. A fall in the share price can lead to undervaluation, but it can also be a warning sign. Investors should definitely research why the price has plummeted before adding the stock to their portfolio. Sometimes it's just negative headlines that cause a stock price to drop. If nothing has changed in the business model, profit expectation and margins, it is worth considering bringing the fallen stock into the portfolio for a bargain price. However, if something has changed profoundly or the negative headlines are significant, be careful because bankruptcy is sometimes not that far away. You don't want to be invested in the next pipe-cracker like Wirecard.
Unsurprisingly, some tech heavyweights are among the 100 most searched stocks. Investors love technology stocks for their huge growth potential. What do Amazon, Apple, Microsoft, Nvidia and PayPal have in common? A successful business model, high growth potential and strong returns.
Amazon is a power and is increasingly forming a monopoly. The online mail order company from Seattle is not only the market leader of commerce on the Internet, but also operates numerous other services: the analysis tool Alexa Internet, the movie database IMDb, the audiobook provider Audible, the live streaming portal Twitch, the search algorithm A9 and the cloud computing provider Amazon Web Services (AWS).
The hardware and software giant Apple sells computers, smartphones, operating systems and consumer electronics. For many, life without the iPhone is no longer imaginable. In the USA, more than 50 percent of all smartphone users own an iPhone, and here in Germany the figure is over 25 percent. Apple keeps bringing new innovations to the market and has recently started equipping its products with its own chips.
Microsoft is probably Apple's biggest competitor, because both compete for market share in the same industry. Like Apple, Microsoft has become indispensable to us, and it's hard to imagine everyday office life without the Windows operating system and Office software package in particular.
Nvidia, the graphics processor and chip developer from California, is gaining more and more attention due to the global semiconductor crisis, making it one of the 20 most searched-for stocks at the moment.
PayPal is the best-known online payment service and is used by around 30 million customers in Germany alone, worldwide it is even more than 400 million. PayPal is known for its acquisition strategy and financial innovations.
The Corona crisis has affected the world economy, but which Corona "winners and losers" stocks are actually most sought after?
Probably the biggest Corona beneficiaries are vaccine manufacturers BioNTech, Moderna and Pfizer. The German biotechnology company BioNTech was not a household name to many investors before the Corona pandemic. It became world-famous through its collaboration with the U.S. pharmaceutical company Pfizer. Both companies were able to significantly increase their sales as a result of the joint vaccine, and their share prices also rose rapidly.
Other vaccine makers included in the 50 most searched-for stocks are U.S. biotechnology company Moderna, French biotech Valneva and German biopharma CureVac.
The German software company TeamViewer was one of the few winners during the Corona pandemic. The demand for solutions for remote control and remote maintenance of computers as well as mobile devices has increased massively due to home office work. However, this high phase for TeamViewer's share price is already over again; since spring 2021, the share has been in free fall.
Like many airlines, Germany's largest airline Lufthansa was one of the losers in the Corona crisis. Lufthana had to cut up to 30,000 jobs, received several billion euros in government aid in the form of loans, and was also kicked out of the German DAX share index in the summer of 2020 after 32 years. The opening of the American borders for European tourists since the beginning of November 2021 gives Lufthansa a little hope.
Shares in car manufacturers and especially electric cars are in vogue and are frequently sought after.
Tesla is among the top 3 most wanted stocks worldwide and no CEO is as present in the media as Elon Musk. Tesla produces not only electric cars, but also battery storage and photovoltaic systems. Tesla's share price has taken off like a rocket since last year and the price gain is around 160 percent (as of November 2021).
Other electric car manufacturers that are currently in full swing are NIO and BYD from China as well as Lucid Motors and Rivian from the USA. Rivian managed the largest IPO to date in 2021 with a market capitalization of around 81 billion euros, and this despite the fact that Rivian is still deep in the red.
German automakers Daimler and Volkswagen, which are also increasingly turning to electric cars, are also among the 50 most-wanted stocks.
A popular sector among private investors is renewable energy, however, the shares of these companies are still experiencing constant ups and downs on the stock market. Good research is urgently needed before you invest in renewable energy stocks.
The best-known players in the industry are the hydrogen and fuel cell companies Ballard Power from Canada, Nel ASA from Norway and Plug Power from the USA. The share prices of the three groups have risen rapidly since last year, peaking at the beginning of 2021. However, the prices have almost halved again since then.
Renewable energy stocks have been experiencing a second spring for the past month. The price of FuelCell Energy (USA) has risen by 70%, Powerhouse Energy (UK) by 60%, PowerCell Sweden (Sweden) by 50%, ITM Power (UK) by 30% and Jinko Solar (China) by 25%. However, investors should analyze these stocks carefully, because the companies are still newcomers to the stock market and are not yet so consolidated.
