14987

Invest In Companies Providing Services You Can’t Avoid

The investment world is full of products and services. Many are essential, such as food and gasoline. Others are more discretionary, like airfares and vacation destinations. When the economy gets uncertain, however, consumers tend to pull back spending on discretionary items and focus more on staples. Those staple goods and services cost more these days. While that’s unfortunate as a consumer, it could be beneficial to shareholders who buy at a reasonable price. One essential for consumers soaring in price today is ...
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14980

Follow this Stock’s Trend, Not Its Current News

Some companies are starting to struggle right now amid the costs of rising interest rates. Other companies are faring much better, as there are strong long-term trends behind them that can help them move forward in time. Even though some companies are warning on short-term pain, those who see big potential moves ahead could still deliver great returns for patient investors amid this latest market selloff. For instance, chipmaker Micron (MU) is reporting that business is in a slump. And that their ...
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14972

In Rough Markets, Look for Winning Trends

The market’s selloff in the past week has been extreme in its speed and severity. But investors in some sectors have been hit harder than others. Knowing where to look for winning long-term trends can lead to better performance during a market selloff. It may not always mean making a profit, but it could mean losing less. And over time, as stocks trend back higher, it could mean outperforming the market. Before the recent selloff, sports gambling stocks were riding high. They’ve ...
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14965

Buy the Sector That’s Quietly Rallying Now

The past few weeks have seen investors sour on technology stocks. However, it’s normal in any market for a sector that’s been the runaway winner to take a breather. When that happens, other sectors tend to shine. With some fear in the markets, defensive areas such as utilities and consumer goods have been holding up. But one sector is also performing well that looks bullish for the economy next year. That is the commodity space. The headline winner has been oil prices, ...
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14959

Buy Turnaround Plays When They Prove They Can Turn Around

On Wall Street, traders are often attracted to “turnaround” stocks. These are companies that have fallen on hard times. But, they have a plan to right what went wrong. That sounds well, and can often attract investors in a stock that looks like a value. But not all turnaround stocks are able to turn things around. That’s why investors should wait for signs a turnaround is succeeding. It may cost some profits, but it increases the chances of keeping a profit. Regional ...
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14954

Higher Fees Mean Higher Profits for the Right Companies

No matter how you slice it, companies need to make a profit. That means they need to make money even after all the costs of business. So when those costs rise, so do the prices consumers pay. It can also mean changing returns for investors. For instance, investors in a franchise need to have deep pockets to invest. Most franchise companies require an up-front financial commitment. Increasing those fees is a sign of higher profitability for the management company. After 30 years ...
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14946

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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14942

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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