Tax refund up 10%

According to USA Today, the average income tax refund is up 10% over last year. You can expect a few outcomes that may affect how you purchase stock. The most obvious example is that big ticket items that need a down payment may take a slight boost.  The people that have been saving for a new TV, car, or home get a windfall check, they may accelerate their purchase. The obvious benefactors here are Ford [stckqut]F[/stckqut], GM [stckqut]GM[/stckqut], and Toyota [stckqut]TM[/stckqut].

Similarly, vacations may be a bit better this year because of this extra cash and that could affect destination stocks such as Disney [stckqut]DIS[/stckqut] or Marriott [stckqut]MAR[/stckqut].

However, the smart money doesn’t spend the extra money on incidentals. A much better strategy is to take a look at one of the stocks on my Watch List to the right and buy one of these securities when the market triggers say that they stock is ready to move up.  That way you take your extra “free” money and multiply it into more free money! If the average increase is a bit over $3,000 as the article claims, that is 25-100 shares of most of these companies.

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