Good morning,
Many investors are familiar with the phrase “time in the market beats timing the market.” While some may dismiss this as just a cliché, clichés exist because they reveal a fundamental truth.
When it comes to growth stocks, time (not timing) is everything.
But don’t take my word for it. Just look at the historical returns in the market. In the 17 years between 2006 and 2023, investors who were out of the market on the 10 best days in the market would have seen their returns cut in half.
That means for investors with a time horizon of longer than a couple of years, growth stocks should take up at least a small part of your portfolio, and if you’re younger or a more aggressive investor, growth stocks should probably take up more room in your portfolio.
This is true no matter what is going on in the market. Bull markets present a challenge of finding growth stocks that are overvalued. Bear markets present the equally stiff obstacle of finding stocks that are undervalued.
In both cases, the list of candidates is smaller than you may think. But if you are looking for growth stocks in an increasingly small field, check out [link[How to Invest in Growth Stocks.
You will find more information on what growth stocks are, how to assess them, find them, and invest in them.
Rebecca McKeever
MarketBeat
Today's Bonus Offer
Most important medical advance in 100 years (Ad)
This is going to dramatically alter medicine forever. Keep in mind, creating a new effective drug in the past took up to 10 years and could cost up to $12 billion. But now, with artificial intelligence, it could take months and cost a fraction of that amount.
Watch my new presentation detailing the opportunity
Investing in the stock market is a lot like planting a garden. Some plants grow slowly but steadily, while others shoot up quickly. In the stock market world, there's a type of stock that's known for growing fast, kind of like those speedy plants. These are called "growth stocks."
Growth stocks are shares in companies that grow at a faster rate than the average company. These companies often make new and exciting things, or they have really good ideas that a lot of people like. They might be making the latest technology gadgets, developing new medicines, or coming up with new ways to use the internet. Because they're growing so fast, people who invest in these companies hope that the value of their stocks will grow quickly too.
One cool thing about growth stocks is that they can make a lot of money. It's like if you planted a magic bean, and it grew into a giant beanstalk. If the company does really well, its stock can increase in value a lot, and this means you could make more money from your investment.
However, growth stocks can also be riskier than other types of stocks. This is because when you're growing really fast, there are more chances for things to go wrong. Maybe the company's new product isn't as popular as everyone thought it would be, or maybe another company comes along with something even better. It's like planting a fast-growing plant, but not knowing if the weather will be right for it to really thrive.
When you're thinking about investing in growth stocks, here are some things you might want to consider:
-
Research the Company: Learn as much as you can about the company whose stock you're thinking about buying. What do they make? Why do people like their products? Do they have good leaders running the company?
-
Understand the Risks: Remember, growth stocks can be like a roller coaster – lots of ups and downs. Be sure you're okay with this kind of excitement and risk.
-
Don't Put All Your Eggs in One Basket: This means don't invest all your money in just one type of stock. Have a mix of different kinds, so if the growth stocks don't do well, you have other types that might be doing better.
-
Think Long Term: Investing in growth stocks is often about looking to the future. These companies might be really big and successful one day, but it can take time. Be patient and think about the long-term potential.
-
Stay Informed: Keep an eye on news about the companies you invest in, as well as their industries. The world changes fast, and you want to know how these changes might affect your stocks.
In summary, growth stocks are like the speedy, exciting plants in the garden of the stock market. They have the potential to grow quickly and make you a lot of money, but they also come with risks. By doing your research, understanding the risks, diversifying your investments, thinking about the long term, and staying informed, you can make smarter decisions about whether growth stocks are right for your garden. Investing is a bit like a gardening adventure – with the right care and attention, you can watch your investments grow.
This message is a paid advertisement sent on behalf of a third-party advertiser of MarketBeat. Why did I receive this email?
If you have questions about your subscription, feel free to contact our U.S. based support team via email at contact@marketbeat.com.
If you would no longer like to receive promotional emails from MarketBeat advertisers, you can unsubscribe or manage your mailing preferences here.
© 2006-2024 American Consumer News, LLC dba MarketBeat.
345 N Reid Place, Suite 620, Sioux Falls, SD 57103. United States.
No comments:
Post a Comment