[What Stealthy Stocks to Buy?] Amidst a Sea of Overvalued Stocks?

What's the best course of action, with plenty of overvalued traps out there? Picks from the Editor SPONSORED (Newsletter Continues Below) Sponsored [Build Wealth 10x Faster By Doing This]( As you know, the stock market has been volatile lately, and there's a lot of uncertainty in the air. But we want to assure you that this is not the time to panic. In fact, it's the time to be buying stocks.[Go HERE to Get Their Names And Ticker Symbols]( By clicking the link you are subscribing to the Summa Money Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( Top Stocks to Buy as Overvaluation Takes Center Stage  Hi Traders,  In the ever-dynamic world of investing, it seems we're always chasing the next big thing, the next skyrocketing stock.  Today, let me serve up some food for thought from one of the big players in the investment game, Patrick Armstrong. Armstrong is the head honcho at Plurimi AI Global Equity Strategy, where he's got his fingers on the pulse of Big Tech.  Now, you might be wondering, "But aren't Big Tech stocks a little overpriced?" Well, dear reader, that's a fair point. This year alone, we've seen a nearly 15% surge in the S&P 500, primarily driven by the tech sector. And let's face it, that kind of growth can make anyone a tad nervous.  Still, Armstrong isn't scrambling to jump ship. In fact, he's holding onto those high-flying tech stocks like they're the last slice of pizza at a party.  The reason? Momentum.  Big Tech has been akin to the star quarterback, pushing forward relentlessly, with a substantial 38% rally this year, as per FactSet data. The forecast for future demand, particularly for artificial intelligence services, is playing cheerleader here.  However, it's not all sunshine and rainbows. The S&P as a whole is merely taking baby steps forward with just 1.5% returns so far this year.  Plus, Big Tech's rather hefty valuations have shoved the index's forward average price-to-earnings ratio to its highest level since 2004. It's like turning up to a party in a limo when everyone else took the bus. It's noticeable, and not necessarily in a good way.  Yet, Armstrong is holding steady. He's no stranger to the harsh realities of investing. He's been burned before, selling stocks when they get pricey, only to watch them become pricier.  His mantra seems to be: ride the wave, even if it looks like a tsunami. He's not advocating for everyone to hoard tech stocks, but he's content to let him ride it out.  However, he cautions that these high-flying tech stocks might hit a plateau if a recession looms. The tech rally, driven by AI and a desire to evade the effects of a recession, could turn into a period of stagnation.  Armstrong likens this to 'dead money', a state of limbo while these stocks attempt to grow into their sky-high valuations. A bit like waiting for your lottery winnings to make you feel rich.  Despite this, Armstrong has a wary eye on certain parts of the tech sector, dubbing them as riding the coattails of the tech rally without having the robust fundamentals to back it up. He's 'shorting' stocks such as electric car makers Rivian and Nio, and German online food delivery firm Delivery Hero.  If you're not familiar with the term, shorting is a bit like gambling on a horse to lose. You profit if the stock price drops. A risky move, but then, no risk, no reward, right?  He wraps up by saying he's quite content to hold onto mega-cap stocks that are cash-flow positive and buying back shares. However, the tech disruptors without earnings, aiming to grow into already tremendous market caps, are a 'no-go' for him.  In the investment world, it seems, not all that glitters is gold... or in this case, not all trending stocks are solid investments.  Keep on keeping up!  John @ Traders on Trend  (In the next article: Why do traders are still feeling good that the bull market will continue? Find out below! 👇) Sponsored [This Has Won 99.1% Of Trades Over 3 Years]( This new video is causing quite a stir. It exposes a unique trade based on the 4 characters “310F”. These 4 characters hold the secret to the most powerful trade you’ve NEVER heard of. It’s released every Tuesday and could DOUBLE your money by Friday. Over the past 3 years, we’ve won 321 out of 324 of these trades (that’s a 99.1% success rate), with the majority of the trades making 100% or more every 3-10 days. Discover how a simple 10-minute trade on Tuesday could double your money by Friday.[Watch The Full Video Here]( [Privacy Policy/Disclosures]( Check the Free Presentation Today ☝ SPONSORED Early Days Yet: Traders Show Confidence in Bull Market  Who doesn't like a good comeback story? Well, hold on to your hats, because the current bull market is shaping up to be just that.  Traders are currently scrambling to bet on bullish options that would see them make bank if the ongoing stock rally keeps up its pace.  This sudden frenzy spans a broad spectrum - from high-tech AI stocks to the smaller, economically attuned companies and local banks. One might say it's like a party where everyone's invited.  The sudden optimism is palpable. It's as if the start-of-the-year blues that investors were singing has transformed into a chart-topping pop anthem.  The S&P 500 has hopped, skipped, and jumped by a whopping 13% while the tech-loaded Nasdaq Composite is blushing with a 29% surge in 2023. I mean, if Nasdaq were a person, it'd be having its best year since 1983.  Bullish bets on AI have been particularly feverish. With Nvidia, Intel, and Advanced Micro Devices taking center stage, we've seen more than 1.3 million call contracts change hands on an average day in June.  Just for perspective, this volume overtakes even the euphoria back in November 2021 when Nasdaq Composite peaked.  Remember how calls give the right to buy shares at a specified price by a certain date? Well, they're currently hotter than the latest iPhone.  (article continues below) Sponsored [Discover a Recession-Proof Company for Your Portfolio]( We have identified a recession-proof company that has tremendous potential for growth in the coming years. Our research team has given them our highest score as a solid addition to any portfolio.[Go HERE to see the Potential Investing Opportunity]( By clicking this link you are subscribing to The Stock Market Monster Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( SPONSORED  🔼 Pay attention, this is worth your time! ☝  (article continues)  In fact, the S&P 500 index options have seen record activity and traders, it seems, are caught up in a whirlwind of elation. The fear of missing out (FOMO), it seems, has made a comeback too.  Stephen Solaka, a managing partner at Belmont Capital Group, hit the nail on the head when he declared, “Fear of missing out is back.”  And boy, is it back with a vengeance.  However, market enthusiasm did take a slight hit recently when the Federal Reserve decided to stick to their plan of raising interest rates, causing a bit of a fumble in the market.  Despite this, the start-of-2023 rally seems to have wrong-footed quite a few traders, particularly those who bet against the market. Now, with the potential for big gains in sight, even the once-cautious investors are saying, "Count me in!"  Zhiwei Ren, a portfolio manager at Penn Mutual Asset Management, said, “I think the recession got delayed,” which is like saying winter is postponed – we didn't see it coming, but we're not complaining.  Ren himself has shifted from his earlier bearish stance and decided to hop aboard the S&P 500's upward trend. And it's certainly paid off.  The FOMO factor seems to have caused a chasm between the market's winners and losers, though things are starting to level out. The current rally has been a bit of a déjà vu of the dot-com bubble in 2000, with a select few tech stocks leading the charge.  The hype around AI is undeniable. Take, for instance, Amazon and MongoDB, which saw sizeable pops recently following their AI-related announcements.  This flurry in the options market has led to some of the lowest pessimism-versus-optimism levels since 2019. This signals that traders are eyeing calls more eagerly than puts.  Amy Wu Silverman, RBC Capital Markets’ head of derivatives strategy, summed it up quite eloquently, saying, “A lot of people are coming around to the view that the stock market may have already bottomed last fall.”  Excitement is now spilling over into other market areas. It's as if traders are eagerly awaiting this year's underperformers to catch up to the tech heavyweights. As evidence, the demand for call options linked to small caps, which have been lagging recently, has shot up.  This gives us a glimpse of the potential for big returns. As the saying goes, "It's not about the size of the dog in the fight, but the size of the fight in the dog." And from where we're standing, the fight is just getting started.  Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit tradersontrend.com/terms for our full Terms and Conditions.   [UNSUBSCRIBEÂ]( TradersOnTrend.com  COE MEDIA.   1126 S Federal Hwy Unit #827   Fort Lauderdale, FL 33316Â