Sunday, January 12, 2014

Is this the year for social media? Lets look at SOCL

As social media becomes more and more prominent in our lives, it may be time to take a closer look at the index that tracks the overall performance of social media. Of course I'm talking about the $SOCL index, which is trading around an all time high at the moment. Apparently, some social media companies, like Twitter, are shooting for the stars and convinced their investors that it's worth its share price at the moment, mainly due to the 'big plans' ahead this year. It's a fact that more and more people use sites and apps like foursquare, reddit, facebook, flickr... the list goes on and on. Of course some apps or sites are less popular than others, or some social media companies may even lose users or go out of business, but I'm talking about social media as a whole - an average if you will. The way I see it, it's time to invest in social media! Let's take a look at the chart of the index that tracks it all, the SOCL chart!

Like I said earlier, SOCL has never traded this high before, and given the fact that so many people use social media on a daily basis and with so much growth potential, this index has a very good chance to skyrocket this year! I've been keeping my eye on this one for quite some time, and normally I'm not a big fan of buying an index or stock at an all time high - rather wait for a pullback - but this one is an exception. SOCL keeps breaking the resistance and may well be trading over 30 after the first quarter of this year. In fact, I'm so confident that this ETF will keep trading higher that I allocated almost 20% of my entire portfolio to SOCL, with a Stop Loss around 20.50, and a target? Not really set. Maybe now I'm aiming for the stars!

By: +John van der Munnik

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