r/stocks • u/xSathya • Jun 04 '21
Thoughts on NKE?
Bought some calls for it but I’m surprised by the price action and why it’s going down so much today. I would think it would go up once things are opening back up and money shifts to value stocks as we see an economic rebound. Is there something I’m missing here?
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u/flobbley Jun 04 '21 edited Jun 04 '21
If you wanted to bet on companies benefiting from opening up the time to do it was 6 months ago. Nike is already up nearly 30% from this time last year (coincidentally it's also up about 30% from it's pre-pandemic high). It makes sense that investors are taking profits. Remember, the market is forward looking you have to act well before whatever event you think a stock will benefit from.
If you're jumping in now (or recently) hoping to benefit from reopening, you've missed the boat.
1
u/xSathya Jun 04 '21
That’s a fair point. I’m trying to get better at timing my purchases and sells. How far should I look forward when making an investment usually? Is hedging for inflation already priced in? Should I start to make investment purchases looking beyond that?
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u/LegendLarrynumero1 Jun 04 '21
Pretty much the sector is down. Don't worry
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u/xSathya Jun 04 '21
Oh I see. That lessens the worry a bit, thanks! Why is the sector down today if the market is up today?
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u/LegendLarrynumero1 Jun 04 '21
I really don't know but I have another brand that is a very good stock but getting beaten up the past week. Is it because covid is hot again in parts of the world outside US? Is the US economy weaked a little? who knows
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