Hitting Home Runs vs Singles

 

Almost every year at the end of baseball season, we see similarities to the stock market in the form of hitting home runs vs singles.

 

Cue Up:  clutch home runs from NY Yankee star Aaron Judge to the delight and cheers from millions of fans around the world.

 

Indeed, home runs are exciting to witness and can literally be “game changers.”

But when you look at the underlying stats of the vast majority of baseball games, you’ll find the real scoring comes from hitting singles.

 

The same is true in the stock market.

But I have yet to hear anyone cheer wildly when an investor picks a stock that’s a home run.

 

And that’s probably because it’s hard to tell if the stock you pick is a home run because it can sit dormant (or go down) before it’s launched into the stratosphere (like Nvidia this year).

On the flip side, hitting singles is easier to track and score because no one thinks they are going to act like a home run.

And Nvidia (NVDA) is a classic example of that.

 

FYI in 2020 NVDA traded sideways at a range of $12-14 for most of the year.

And two years later (September of 2022) it was trading between $12-14 for several months following.

 

And it wasn’t until one year ago when NVDA jumped all the way up to $40 in October 2023.

The rest, as they say, was history with NVDA reaching a new high at $140 last week.

 

Point being that NVDA was like hitting a single as opposed to a home run.

 

Hitting Home Runs

 

 

But even though the facts prove repeatedly that hitting singles is better than hitting home runs, most investors like to think they’re going to hit home runs.

And that is precisely why most investors get their heads handed to them by the Boyz in the “Club.”

 

Ironically (or NOT) the Boyz in the “Club” are quite adept AND content hitting singles.

And in the process, they create their own hype around those “singles” using their Bought-and-Paid-For Financial Presstitutes to get you to start buying the same stock and run up the price for them.

Then, after the retail sector is convinced they are hitting a “Home Run,” the Boyz turn up the “Pump and Dump” ** rhetoric and usually sell into the retail buying.

 

READ:  ** Wall Street’s Secret Language…Annoying Acronyms  (HERE).

 

Baseball may have lost most of it’s luster in recent years.

But there is nothing like the World Series to trigger fond memories as to why it once was America’s Pastime.

 

Especially when it looks like it will be an all–New York World Series. *

(* Hint…the Dodgers were originally from Brooklyn)

 

Learn how to hit more singles in our Short and Sweet Tips column (HERE).

And share this with a friend…even if they hate the Yankees, Dodgers, and the Mets.  They’ll thank YOU later.

 

And tell them:

 

We’re Not Just About Finance

But we use finance to give you hope.

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