Catching The Next New Trend
Can you identify a new trend before it happens?
Are the clues right in front of you for the next big rally?
Whoever bought oil after it went negative or Bitcoin at $600 saw the clues in its potential.
Let’s take marijuana stocks for example…
I bet someone who benefited medically (or knew someone) through the use of marijuana, noticed a growing trend of awareness and acceptance.
That inspired the idea to invest in marijuana stocks, and made huge gains…
A lived experience combined with a growing trend of interest could be the powerful ingredient in confidence to pull the trigger.
The movie “The Big Short” is an excellent example.
They interviewed an ‘exotic dancer’ to gain granular insight into the fabric of the property market.
The signs were there and they bet BIG…
Sometimes being on the front line, seeing how consumers are behaving, combined with research can give you a huge edge.
But how can you tell if the trend you are seeing is just a small sample size or part of a wider emerging trend?
Enter Google Trends…
Red = “Medicinal cannabis” Interest in the subject
Yellow = “Marijuana dispensary near me” Average potential consumer
Blue = “Weed stocks” Interested investors
What’s interesting is the growing correlation between all three search terms from August 2016 to November 2016.
We didn’t know the stocks were going to go parabolic, however, some signs gave promise of a positive outcome.
Here’s a chart of canopy growth with August 2016 marked off – You’d have been very happy if you bought then and held until November…
The secret to finding great swing trades is to spot something before everyone else does.
What’s the next trend you can spot?