After trading near the flatline yesterday, the stock market continues its slow decline again today.
Consumers are gun-shy as gas prices rose, even as oil prices stopped short of $80 a barrel. Commodities are always sensitive to supply and demand influences, so we can probably expect to see mainstream oil stocks fall. It’s not particularly surprising that the market is particularly cautious around these volatile energy prices.
In this scenario, it makes sense for traders in penny stocks to look at the cheap stocks available on the OTCBB and Pink Sheets Stock Exchange. Serious penny stock traders can find some of the best penny stocks to buy in the Penny Pic newsletter. (Subscribe to this amazing FREE resource and get immediate access to the best penny stocks to buy right now.)
Meanwhile, the Conference Board reported its Consumer Confidence Index for February fell much more than expected. Naturally, this news didn’t help stocks or energy commodities, which dropped following the report.
Oil prices rose for more than two weeks as a steady series of reports suggested that manufacturing, home building and other pillars of the American economy were improving. But the high unemployment numbers in the U.S. have barely shifted, and if a slump in consumer confidence continues, it may foreshadow another summer in which Americans cut back on travel and hospitality-related buying.
The news wasn’t all bad, though. In an encouraging sign, the dollar moved higher against the euro today. This is good news because crude is traded in dollars, so it becomes less expensive when the dollar rises. In turn, this forces investors holding other currencies like the euro to pay more for the same amount of oil.
With so much uncertainty, it makes sense for investors to be cautious about where they place their bets. And it makes even more sense to try to squeeze the most return out of every investment dollar.
This means that, in this “best of times/worst of times” type scenario, smart investors are looking towards micro-cap stocks and penny stocks to produce the most potential. These investors know carefully chosen investments in micro-cap stocks and penny stocks can yield substantial gains, while protecting the bulk of their nest egg.
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