Yesterday we looked at what to watch for the last couple weeks of the year. Today we are looking at the trades to keep an eye on as we start to set up our 2023 strategy.
A couple areas to watch are clean energy and pot stocks. We have talked a bunch about clean energy and here are a couple ETFs that could benefit as the push to solar and EVs continues to gain momentum.
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN)
Invesco Solar ETF (TAN)
iShares Global Clean Energy ETF (ICLN)
iShares Self-Driving EV and Tech ETF (IDRV)
Global X Lithium & Battery Tech ETF (LIT)
Using ETFs to trade a broader trend can reduce the risk of being to exposed to a single issue one stock is having. The ETF diversifies the position across multiple companies.
The logic is that not only is this a trend that has some good tail wind in public acceptance, it is also getting financial support from companies and the government.
Another area to look at as an investment for 2023 are pot stocks. There is significant support to legalize it on a federal level which would really open up a potential rally.
ETFs like CGC which we just discussed recently and stocks like Green Thumb Industries Inc. (GTBIF) haven’t see the pop you would expect with the growing support for legalizing weed.
After the markets finish this end of year churn and decide who they want to be in 2023 these are a few trades to keep an eye on.
Keep learning and trade wisely,
Market Wealth Daily