The best penny stocks to buy in 2012 will depend on which penny stocks are poised to make big moves based on news, momentum, and current hot stock sectors. The economic and stock market outlooks for 2012 are very uncertain since there are so many economic and stock market cross-currents that could cause either a recession and a stock market decline or a recovery and a significant stock market rally during 2012.
Penny stocks can actually be a “safe haven” from the volatility of the major stock markets, since penny stocks trade mainly based on news and momentum, rather than in tandem with the swings of the major stock market indexes. However, long bull or bear markets in major stock markets can spill over to penny stocks over time, since trading capital committed to penny stocks is affected by trading capital excesses or shortfalls in trader’s accounts from their trading on major stock markets. Ultimately, no matter what the condition of the economy and major stock markets in 2012, there will be news and momentum penny stocks to buy in 2012. The key for penny stock traders is finding the hot penny stocks to buy in 2012. See Where to Find The Hot Penny Stocks for guidance.
The spillover effect from the major stock markets to penny stocks also influences which hot stock sectors in 2012 will spillover to penny stocks. The hot major stock market sectors of 2012 may be a replay of 2011, with a lot of trader attention given to gold and silver mining stocks, if the run in precious metals continues in 2012. Another hot stock sector in 2012 will be social networking stocks, with the Facebook Initial Public Offering (IPO) dominating the IPO market in 2012. Many social networking related companies, including many penny stock companies, will try to cash in on the social networking craze in 2012. The best penny stocks to buy in 2012 will likely be in these hot stock sectors.
The penny stock market is loaded with stocks that have the potential to be the best penny stocks to buy in 2012. The key is to focus in on hot sectors that penny stock traders are trading, and to act on penny stock trading opportunities. A penny stock trader has to go where the action is in the penny stock markets to find stocks in hot sectors that have sufficient buying interest to push their prices higher.
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