The new year will be filled with unknowns, especially regarding a potential recession resulting from aggressive rate hikes. That said, one stock that could shine despite economic headwinds is Amazon.
A shift to online retail purchases should allow Amazon to weather a recession. The tech giant basically reigns supreme in the online retail space and is expected to continue to do so in 2023.
recently CNBC reportTechnical Expert Analyst Brian White Quoting Monness Crespi Hardt, we confirmed Amazon’s outlook for the new year.Growth runway ahead of Amazon in areas such as e-commerce, Amazon Web Services, digital media, advertising, Alexa, robotics and AI. “
COVID-19 remains a wildcard impacting the capital markets, and a push for online retail should benefit “the company’s long-term business model,” White said.
Traders looking to trade Amazon but need a little leverage to amplify their profits should Direxion Daily AMZN Bull 1.5X Stock (AMZU)AMZU seeks 150% exposure to Amazon stocks, giving bullish traders added leverage to extract more from their beliefs.
Extensive use of technology
Traders who do not want to acquire a particular symbol should Directions Daily Technology Bull 3X ETF (TECL)The big tech sector is having a strong year, as evidenced by the NASDAQ-100 falling more than 30% towards the end of 2022.
That said, if the U.S. economy avoids a recession and the Fed curtails its aggressive rate hikes, there could be a major tech resurgence heading into 2023.
With 3x leverage, TECL is certainly not for the faint of heart. The fund calls for 300% of the daily performance of the Technology Select Sector Index as a daily investment result before fees and expenses. The index includes domestic companies in the technology sector.
According to some market experts, these favorable terms do not necessarily favor big tech.and business insider article, Wedbush Securities’ Dan Ives and John Katsingris predict strength in Big Tech despite a weak economy, thanks to a confluence of sector-specific triggers such as major mergers and beneficial cost cuts. . This is why we consider Big Tech a value play.
“With technology valuations trading below their five-year averages and views on the sector already quite low, now is the time to own quality stocks,” Ives said.
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