Growth stocks often lead to large returns but they require researching and understanding the industry and company before investing. Investors should look ahead to likely policy changes with the new presidential administration and their potential long-term effects to create a sustainable portfolio.
Don’t Invest for Dividends Alone: How Growth Stocks Can Generate Income Too (Investor’s Business Daily, December 12)
When trying to generate income from investing, capital gains make a difference. One technique, which is research-based, uses growth companies to enhance your annual return. It takes practice and patience to monitor the stock market. This article lists resources that claim to aid in finding growth potential and cash payouts.
3 Top Growth Stocks to Buy in 2017 (The Motley Fool, December 14)
As 2017 approaches, investors are looking to faster-growing stocks. With interest rates remaining relatively low, growth stocks have the potential to outpace their competition. Sean Williams, the author of this article, looks at what he considers the top three growth stocks that should be on your radar for 2017: Ligand Pharmaceuticals Inc, Yamana Gold Inc, and Facebook Inc. He writes that all three of these companies have a positive business structure for investors and are focused on growth over the next year.
Upgrading Your Portfolio for the Reign of Trump (Equities.com, December 14)
Financial markets have responded positively to the expected policy changes coming with the new administration. Financial and industrial sectors have seen the strongest returns, while real estate and utilities have declined. There is skepticism that the boost from the Trump administration will be long-lasting, leaving long-term portfolios unchanged. Manning & Napier believe that in the intermediate-term, growth, inflation, and interest rates are likely to move to the upside.
4 Large-Cap Blend Mutual Funds for Alluring Returns (Nasdaq, December 12)
Zacks Equity Research looks at four top-rated large-cap blend mutual funds: Invesco Growth and Income A, Fidelity Advisor Capital Development A, Dreyfus Large Cap Equity A, and Columbia Large Cap Enhanced Core Z. These funds seek to offer value appreciation through capital gains by investing in value and growth stocks. Blend funds are thought to be a safer option for risk-averse investors compared with small and mid-cap funds, especially over the long term.
Growth Stock Investing: The 3 Worst Mistakes You Can Make (The Motley Fool, November 25)
Growth stock investing has led to double-digit returns over the past nine decades, but this strategy is not easy. One mistake investors make is chasing new technology before it establishes itself. Waiting for a company to establish itself might mean missing an initial surge on share price, but it also keeps investors from choosing companies that take a dive. It can also be difficult investing in growth stocks for the long-haul if emotions influence decisions. To control emotions, make a detailed checklist and investing thesis, focusing on a company’s balance sheet, revenue growth, margins, and cash burn every quarter. Investors should also know what they are buying and perform due diligence by investigating the company, industry, and competitors before investing in growth stocks.
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