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Chris Bell

Best Stocks to Short Sell for 2019



If you’re looking to make some serious money quickly in today’s financial climate than the traditional method of buying shares in a good, strong company and waiting for them to increase in value is over.

Investing in companies like Coca-Cola is always going to be a safe bet.

If you invested $1000 in the company in 2009 then according to CNBC it would today be worth $2,500. This is a nice steady earner but it is hardly going to bring in that much-needed money quickly. These are shares you want to hang on to for decades.

Instead, stocks to short sell seems like a better option to make money in a short space of time.

What Are Stocks to Short Sell?

Stocks to short sell are where you buy stocks from companies when they are at their lowest ebb. However, you have calculated that they have a very high chance of recovering.

You then sell them off when they’ve recovered from this minor dip.

Predicting political events can be a great way of making money from short sells in this way. Savvy investors, for example, will have taken advantage of shares falling in British companies and the sudden drop in the pound to record lows on Brexit day in June 2016.

Knowing that the economy was likely to recover as the Bank of England implemented emergency measures to protect the economy, a new Prime Minister took office and the shock of the result wore off, sellers would then sell their stocks a few months or weeks later.

Short selling can also involve dispensing with stocks when they reach their peak, just before they lose value.

Some say investing in stock to short sell and shares is no different gambling in Las Vegas, only Vegas is more fun. We say these people are wrong. Stocks and shares can be a far safer bet if only you use your intelligence and read the news to help you make a highly educated decision. It is almost foolproof.

Amazon

Amazon’s long term investments are solid.

The sheer amount of money they already have means they can invest billions in new products and innovations, pushing the boundaries where other companies can’t. They can also afford to stomach the loss if they don’t work out.

Their streaming service produces TV series with the budgets of blockbuster movies. Equally, their new physical stores, currently being rolled out, featuring some of the most advanced shopping technology.

But in the short term, the price goes up and down, with the company focused on longer-term goals.

Trying to find a short term pattern or investing just before a new product or service is about to launch and then selling when it has just launched is a great way of making some money.

Remember the share price for Amazon is very high at $1,712 as of March 2019 so you will need to invest a lot of dollars to make this a worthwhile investment.

Intel

Everybody in the modern world is always going to need a computer, just as they need running water and electricity. And everybody who needs a computer is going to need a chip to make it work.

Intel’s fortunes, therefore, are pretty solid. Lately, they have been working on a chip for the internet of things, which is a rapidly growing market only look set to grow over the next couple of years.

Its stock price of $54.33 as of March 2019 makes it an affordable investment. The stock was priced at $51.40 one month previously in February 2019.

J.P Morgan Chase & Co.

Under President Trump, banking regulations have been liberalized and tax rates slashed. This makes favorable conditions for investment banks and financial services in general.

With credit card debts at record highs and no-credit-check personal loans easily available, this is a booming industry. Be sure to learn more about them here.

The stock price is currently $106.55 as of March 2019 but as recently as January 2019 it was $92.14.

As an international company, affected by geopolitics, wait until America’s relationship with China deteriorates once again and invest when the stock is low and cash out once the trading relationship is stable again.

The (”Not-So-Failing”) New York Times

Who would have predicted that a newspaper would have been featured on a list of companies to invest in at a time when print journalism is in serious financial trouble? But the New York Times is booming, even if President Trump doesn’t think so.

The paper had previously fallen on hard times, with earnings having decreased by 20% but they are projected to rise by 40%. This is in part thanks to increased revenue from subscriptions, both print and digital and a campaign to get readers to invest in its journalism.

Now is a good time to invest as the paper begins its recovery and it also has no debts meaning it is unlikely to experience sudden financial difficulty. Its share price is currently at $34.25, as of March 2019. In February 2019 the price was $31.96.

The relatively low share price means buying shares in bulk can be an option even for those on a tight budget with what they can afford to spend on shares. This is how to short sell a stock.

Ollie’s Bargain Outlet

Ollie’s Bargain Outlet is a discount store, selling off goods from stores in bulk at heavily discounted prices.

As the high-street struggles against online retailers and more and more shops go out of business Ollie’s Bargain Outlet stands to gain, buying more and more leftover or unused stock from a bankrupt business. It is then able to compete and even undercut online retailers.

With 285 stores so-far and plans to expand by 10% over several years, this is a great time to invest as revenue and the stock price is almost guaranteed to increase.

Taking Stock

The world is a very volatile place at the moment. For some companies and some people, this added risk is a massive problem and something to be concerned about.

For those playing the stock market, the risk and unpredictability of the world, as well as ever-changing technological advancements, can be seen as a great opportunity. Stocks to short sell are the perfect way of taking advantage of this unpredictability.

A business that has fallen on a hard time may well make a revival whilst some of the old tried-and-test giants of the business world might well not continue to trade well in the future.

If you’re interested in more ways you can make money and what’s happening the world of business, check out our business section for more.