Raleigh, NC -- (ReleaseWire) -- 05/08/2012 -- Many upcoming events should give investors insight into the health of the economy. Some important ones, such as the Commerce Department's auto sales data, may demonstrate whether or not consumers have decided to buy big ticket items again. Others like the Census Bureau's construction spending report will also add further clarity. Both will be released on May 1st.
According to Peter Leeds, expert on penny stocks to buy, investors in stocks should take clues from the data. If the numbers show more people decided to buy cars and trucks in April, it could telegraph other strong reports coming up, which would all demonstrate that the economy is on the mend.
"The economy is getting better or it's not," states Leeds. "I suggest to subscribers of my penny stocks newsletter to watch the data before they buy anything. Strong data may signal it's time to buy - maybe buy a lot, maybe buy a little - depending on the numbers we see."
"Weak data on the other hand may suggest it's best to buy certain types of penny stocks, like defensive penny stocks such as pharmaceuticals, which aren't tied to economic strength as directly. You may want to not buy penny stocks that are consumer discretionary on the heels of weak reports."
Peter Leeds and his penny stocks team do not buy or sell any penny stocks they profile to subscribers of their newsletter. They also receive absolutely no compensation from the penny stocks they review or publish.
Asked what numbers are expected from the auto report, Leeds mentions that most analysts predict that in April 5.4 million cars and 5.7 million trucks will have been purchased. He goes on to suggest if the report shows that people buy more that expected, it could give many stocks a reactionary boost, penny stocks among them. On the other hand, if there is less buy activity it could be a wet blanket on penny stocks, and will affect what he suggests to subscribers to buy."
Leeds mentions some other upcoming reports as well, including: initial jobless claims, crude oil inventories, unemployment rate reports, and hourly earnings, among others. All of these are anticipated to be released by or prior to May 4th.
"We'll have a much better idea of where the economy stands, going into the spring. This will help guide out research into which penny stocks to buy and which penny stocks to avoid. We're watching many penny stocks right now for subscribers, and we'll know which ones we would like to buy in our opinion once we've had time to review the reports as they are released."