subject: What Stocks Should You Invest In? [print this page] Rumormongers and so-called experts have tainted the credibility of investing in the stock market. Due to the state of stock market conditions today, as well as the effects of the recession on the economy, many investors are following these "leads" and cashing out, supposedly while they still can. However, investor panic in the devaluation of stocks is mostly unfounded - you can still make good money with a diversified portfolio and the prudent purchase, holding, and selling of certain stocks.
The most profitable retirement portfolios contain a diversified set of stocks. It's recommended that you have a good mix that includes high-growth stocks and dividend stocks in your portfolio. Stocks that have high growth potential help you maximize your investment returns and make big money fast, so chose some to place in your portfolio. The best high-growth stocks often sport high income growth and sales, and trade at reasonable valuations. On the other hand, dividend stocks won't give you fast money or huge growth, but they will help diminish the impact of the unpredictable market on your portfolio. Select dividend stocks with good yields, payout ratios, and decent growth rates - if you can buy some from recession-proof sectors and industries, even better.
Professional investors, stock market analysts, colleagues, or friends may tell you that investing in stocks is tantamount to throwing your money away, especially in this financially-burdened day and age. However, while changes in the market have been unfavorable to many (causing people to see their investments with a dismal and skewed outlook), stock market returns still have the potential to bulk up your finances. Pick some high-growth stocks for maximum investment returns, and dividend stocks to buffer against possible losses due to market fluctuations. Aside from these, stocks from a number of different sectors and industries can help minimize investment loss due to inflation, market conditions, and other factors that could erode your profits.
