“We buy into certain trends because they're aspirational, says CNBC’s Donny Deutsch. “That can be anything that's hitting a nerve because it's where the world is going. We feel better about ourselves for participating. “
Every year there are one or two “IT” products that capture the cultural wave, adds Macke. Now, how can you spot the next iPod or True Religion jeans before the money's been made? They all have a few things in common, he says, desire, passion, excitement. and they’re hard to get.
So, put on your analyst hat, watch sales figures from month to month and look for news of big orders. Who knows, your next trade could be “IT.”
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“I think the videogame makers are in the sweet- spot right,” now says Jeff Macke. He likes Activision (ATVI), Nintendo (NTDOY) and Gamestop (GME) because he feels the Wii changed the way the console wars will play out.
Karen Finerman prefers Crocs (CROX) because she anticipates more growth to come. At 16 times earnings she thinks this stock is a buy.
Read Other Posts In This Series:
> "Inside The Consumer Mind Pt. 2: Consistency"
> "Inside The Consumer Mind Pt. 1: Relationships"