Certainty Can Drive Stocks Higher

Investors don’t like uncertainty. They tend to give a company a lower valuation when its future outlook appears grim. That could occur for a variety of reasons, such as a series of poor earnings reports. Or there could be some kind of tax or legal overhang on shares. Resolving those issues could benefit shares. Besides providing an immediate boost, it could also set up a stock for a longer-term move higher. Investors who buy after the uncertainty immediately disappears can still ...
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Look for Long-Term Ideas Trading Near Lows Now

With stocks showing some seasonal weakness, investors may want to turn from volatile big-name companies near their highs. Instead, it may be time to look at stocks that are well off their highs, and could be set up for a strong year-end rally. Some companies in tech fit the bill. With the market’s interest in artificial intelligence-related stocks, the big winners could come from other tech trends that are still unfolding. For instance, this could be the first year that over half ...
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Embrace Old-School Companies Playing to Today’s Tech Trends

Most investors playing a tech trend tend to look for the companies that most directly play to that trend. For tech stocks, that may mean owning chip companies or software companies. However, a powerful trend can impact multiple industries. And investing in industries implementing new technologies before they see a benefit can lead to great returns. The trick is to look at the adoption of these disruptive technologies when the market is still focused elsewhere. For instance, self-driving cars are still a ...
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Buy Big Trends When They’re Out of Favor

When a trend is hot, owning any company related to that trend can lead to big gains quickly. But when the trend shifts, a company can fall out of favor as well. Some trends occur just once. Others are more cyclical. Targeting cyclical trends when they’re out of favor can lead to great returns. When the cycle turns, it can lead to life-changing profits. Especially when they relate to tech-related trends. For instance, electric vehicles are a top trend. But stocks related ...
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Bet on Asset Managers to Win as the Economy Grows Over Time

The financial sector is dominated largely by banks, but there are other niches in the space that can be a better place for investors. That’s because bank stocks can see massive declines during credit events. Or if a bank goes under, the stock can become worthless. That’s why other parts of the financial sector look reasonable. Many tout the insurance space. But asset managers are often an overlooked play. Asset manager Blackstone (BX) is one such player, although it may be better ...
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Stick With 2023’s Winning Stocks of the Year

Markets tend to move in trends. Since bottoming out late last year, the trend has been higher, even with a few hiccups along the way like the drop in early August. With stocks trending higher, last year’s big losers have gained more ground than average. That trend will likely continue as well. That’s good news for investors looking to catch up this year who may have missed out on the first part of the market rally. The best-performing stock this year in ...
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Grab Global Diversification with an Unloved International Play

Investors tend to suffer from a “home country” bias. They tend to overweight positions in assets located in their own country, and fail to sufficiently diversify internationally. There are plenty of markets that offer better values than the U.S. market, even adjusting for political and currency risks. And in those markets are plenty of industry-leading companies that can provide great returns for patient investors. Especially those who buy unloved sectors. One simple place to start internationally is with UBS Group (UBS). The ...
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This New Technology Rollout Could Take One Stock to New All-Time Highs

While markets have been excited about artificial intelligence this year, other tech trends haven’t gotten as much interest. That’s led to better valuations, particularly for companies that are rolling out new technologies of their own. One company in particular is putting out a new gadget that will likely significantly boost its bottom line. Even better? It looks like the company won’t be raising prices, a much-needed relief given the recent inflation. That company is Apple (AAPL), and the new gadget is the ...
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