
$Rocket Lab(RKLB.US) I just saw an opinion and I'm sharing it here. Personally, I agree with this viewpoint from a short-term trading perspective:
Another interesting observation: Every year, November and December are the crazy periods for small-cap stocks, possibly related to fund managers' retaliatory investments to make up for underperforming the market throughout the year, beautifying performance, and earning dividends. This was also the case in 2023. However, this surge usually disappears in early the following year. Considering that Trump will take office on January 20, the recently soaring small-cap sector is likely to experience significant fluctuations around January 20. Comparing to the situation in 2016 during Trump's trading, small-cap stocks also surged before he took office; after he took office, the market fluctuated due to the trade war; only after the tax cuts were implemented did the big tech rebound. This is because small tech companies have no income, so tax cuts mean little to them. But the tax savings for big tech are countless. The takeaway for us is: If you've recently missed the small-cap surge and want to invest long-term, like in SOFI, you might want to wait until the end of January next year. If you must chase high in December, be careful to exit before New Year's Day. After 2025, the market may still return to big tech leading the SPY upward, provided there is no recession, the Federal Reserve does not raise interest rates, and the job market does not deteriorate rapidly.
From a certain perspective, the recent crazy rise in RKLB's stock price is certainly due to improvements in its fundamentals, but it cannot be ruled out that the funds holding it need to show performance by the end of the year.
Let me think, how to do it??!!
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