What Is an Eeyore Stock? (and How Can You Make Money on One?)
Archives: Investing
Believe it or not, stocks have personalities.
They can be happy, sad/depressed, manic, or plodding. Happy stocks go up almost every day, regardless of market conditions. Sad or depressed stocks go down almost every day, regardless of market conditions. Manic stocks? We could call these “Jim Cramer” stocks, because they are as volatile as the CNBC commentator. They bounce wildly from day to day. And we could call plodding stocks “Eeyore” stocks. They slog along without drawing any attention, just hoping someone will notice them. For the most part, these stocks grind sideways.
Knowing the personality of a stock will determine how you want to trade it. You want to own happy stocks… short depressed stocks… buy options on the manic stocks… and sell options against the plodding ones.
[Ed. Note: The market may be volatile, but it still offers plenty of ways to profit. Knowing the personalities of the stocks you control could keep you ready to tackle opportunities as soon as they present themselves. Market analyst Rick Pendergraft has put together an educational program that lays out the simple steps you need to take advantage of these chances to prosper. Not only do you get three months of Rick's best recommendations, you also learn how to make good investment choices yourself. Get the details here.]
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