Buy Income-Producing Defensive Stocks on Sale

When it comes to shopping at a store, consumers love a deal. Yet when those same consumers are shown a declining stock price, their first instinct is to avoid or sell, not buy. Investors who can look past that trend and look to buy when a stock is on sale can get a good deal. And a sale typically won’t last long on a great, industry-leading company. Taking advantage of those deals can lead to great investment returns over time. One deal ...
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Bad News Can Prove Good News for Patient Investors

Markets tend to react quickly to news. However, markets don’t just react. They tend to overreact. When there’s good news, the price of a company can get pushed far higher than it should. And when bad news hits, shares tend to sell off more than they should. Patient investors can use this to their advantage. They can buy when there’s bad news surrounding a company. And then take some profits when good news sends shares higher than they would otherwise go. Right ...
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For Big Returns, Look for Smaller Players Profiting from an Industry Boom

When an industry is growing, investors may tend to go for the company that can boast the largest growth, or is simply the biggest player. That provides the perceived safety of a well-known name that other investors know about, as well as the best liquidity for getting out of a trade. However, that leaves investors with opportunities to profit from companies that may not be as large or well known, but can still post a massive profit. In the defense industry, the ...
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Look Outside of the Best-Known Names for Great Returns on Big Trends

During an investment boom, some companies tend to soar relative to their peers. That’s because the market perceives them as having the best advantage. However, for a big enough trend, multiple companies can become winners. That means investors have a second shot at investing in a big trend by following companies that can still benefit from that trend. And investors may have better returns buying these companies over the industry leader after it’s already had a big rally. For instance, in the ...
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Buy Industry Leaders on Bad News

Investors looking for market-beating gains can find them by buying and holding great companies over the long term. The trick is when to buy a great company. If a company is well run, leads its industry, and is profitable, getting a bargain is rare. But sometimes a share price might get knocked down a bit on some bad news. Even if it’s not a full-blown bear market, it could provide a short-term entry point for some quick profits on a turnaround. That ...
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Hedge Your Portfolio With this Recession-Resistant Giant

Investors remain concerned about a slowing economy. Inflation and unemployment have risen in recent weeks. While still off their highs from the past few years, it’s possible that the economy could slide further, even into a recession. For that scenario, investors don’t need to cash out or go to bonds, where they may still get hit by rising interest rates. Rather, it makes more sense to buy an industry leader with a track record of holding its value in a recession. That ...
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Don’t Overlook Stealth AI Plays

The market’s love of AI stocks has helped lead to a strong rally this year. However, investors have largely poured money into large-cap chipmaking stocks as a way to play that trend. Doing so overlooks companies that can see big improvements in productivity and returns by embracing companies using AI software themselves. Once the market figures out the opportunity at the software level, which doesn’t involve the expenses of producing physical hardware, returns could take off. One leader in the AI software ...
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Stick With Tech Companies that Can Deliver

Investors can often get caught up in tech trends before they move past the drawing board. That can lead to some stocks getting overvalued, and others getting undervalued. In the chipmaking space, companies developing AI chips have seen all the attention. But existing chipmakers that can still deliver critical chips outside the AI realm can also be valuable. And buying them now may give investors an edge going into the end of the year. For instance, wireless communications chip company Qualcomm (QCOM) ...
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