Ready to start investing? Whether you're new to the market or a seasoned veteran, this year presents unique opportunities. Over the years, stocks have remained the best option to invest in for people seeking long-term returns. Since the stock market did significantly well in 2017, the greatest challenge this year is deciding which stocks to invest in. Here, we will review the top must-have stocks of 2018, and we will also review the most important types of investing for this year. Read on for some of the most frequently-asked questions from stock-trading clients and for information about the best stocks of 2018.
There many ways to jump into the stock market, and each type of investment carries its own risks. Our picks for must-have stocks this year are mutual funds, high-yield bonds, gold investing, penny stocks and options trading.
These are bonds that are issued by firms with a lower credit rating. Since there is a huge risk of default, such bonds pay higher yields. Should the company manage to turn around its credit rating, the investors can make huge profits.
Money can be made through dividends and capital appreciation. Cash dividends are earnings per share of stock that are declared by the company and paid to shareholders, whereas stock dividends are additional company shares given to shareholders. Most investors prefer dividend stocks as they are much safer.
The top five companies to invest in this year, in our opinion only, are Netflix, Amazon, JP Morgan, Facebook, and Boeing. Netflix and Amazon are long-time top performers and are poised to be market leaders for years. Facebook is a controversial pick which has been in the news recently over its content standards, but it remains a powerful and attractive advertising medium with a massive audience. Boeing and JP Morgan are large, successful American corporations with strong, upward-trending profits.
Individual stocks involve buying piece/shares of a single company while mutual funds involve buying shares of several different companies. Mutual funds are considered less risky since they are more diverse. In case one or two companies fail, there is still a chance that others can do well. On the other hand, individual stocks can be very profitable and riskier too. Therefore, the choice on which one is a better investment depends on the extent of risk one is willing and able to take.
This is a trading that is done by self-directed investors; this means that they don’t work with a financial advisor. This doesn’t mean you are alone – there are several groups that bring such investors together to discuss issues such as current market outlook. Different options give a trader the right to buy or sell stock at a fixed price during a specific period through a call option or a put option.
These are stocks that trade at a relatively lower price; mostly outside the major market exchange rates. They are very risky since they lack liquidity. They are good for long-term returns and they are often associated with growing companies. Even so, bankruptcy is possible.
This is an investment that gives investment results before expenses and fees, which generally corresponds to the price and earnings performance of the ROBO Global® Robotics and Automation Index. The index tracks companies that work in the global robotics, artificial intelligence, and automation industry.
Gold doesn’t have to be bought in the physical form since gold exchange-traded funds have made it possible for one to include gold in their portfolio. Gold was once viewed as a way to protect one against inflation and risks rather than a profit-seeking investment. But recently, it has outperformed the Dow Jones Industrial Average.
Investors have always taken advantage of new markets, and this year, that new market is cryptocurrencies, especially bitcoins. Bitcoins have been widely accepted as a medium of exchange. So far, bitcoins have yielded high returns, but whether or not it’s a good long-term investment plan, it will depend on the level of acceptance across the globe.