The Covid-19 pandemic impacted all of us in many different ways. From work to family to finances, we were forced to adapt to a “new normal” that included staying home, jumping on Zoom calls, doing puzzles, and baking a ton of sourdough bread.
It also likely changed how you invested in the stock market. But change is not always a bad thing.
While the past couple of years have been a wild ride, it has also been a time filled with opportunity for those willing to take calculated risks.
Hopefully, you’re a wiser, more nuanced investor right now than you were a year ago. You invested and traded your hard-earned cash during a once-in-a-lifetime pandemic, after all.
It’s similar to the difference between your investment mindset today versus when you just started out.
Knowledge is gained through experience, and experience guides how you manage your portfolio. You grow, you learn, you make good trades and bad ones, and then you learn and grow some more.
Opportunities Are There If You Know Where to Look
So far, 2022 has been one massive swing after another for the stock market.
We’ve been entrenched in a rollercoaster trading environment as investors contend with furious waves of uncertainty.
The war between Russia and Ukraine has heightened market concerns, and after almost a month of fighting—which has resulted in numerous sanctions leveled against Russia and its elite, millions of Ukrainian citizens forced to flee their home, and the price of oil marching higher and higher—it seems to have reached a stalemate.
Another main source of volatility this year has been the Fed’s plan to raise interest rates amid record high inflation, though investors did get some much-needed clarity last week after the central bank’s latest policy meeting.
A hawkish Fed resulted in a major tech sell-off over the past few months, and the Nasdaq is down about 11% year-to-date. High-flying growth stocks have seemingly been given the boot in favor of value and cyclical names in industries like banks and energy.
How Should You Invest in 2022?
No matter what’s happening geopolitically or which kind of stocks are in demand, the best thing you can do is stay levelheaded and stick to your long-term investment goals, as your investing style should always reflect these personal and individual objectives.
So, if you’ve recently found yourself thinking about changing up your portfolio, make sure to ask yourself questions like: when do I plan on retiring? Where do I want to retire? Do I have debt I need to pay off? Do I want to buy a home? Do I need to save for my kids’ college education? And so on and so on.
There’s a lot you have to think about before switching to or incorporating a different investing strategy.
Keep reading . . .
------------------------------------------------------------------------------------------------------
See ALL Zacks’ Long-Term Picks for Only $1
Confidently navigate today’s market with Zacks’ private investment recommendations. These picks are based on the system that has more than doubled the market since 1988 and which pointed investors to 68 double- and triple-digit winners in 2021.
Starting today, for one month, you can follow these exclusive portfolios in real time from the best stocks under $10 to Warren Buffett-style value plays to high-paying dividend stocks. Total cost $1. No gimmicks.
See Stocks Now >>
------------------------------------------------------------------------------------------------------
But no matter what you decide is best this year, always remember that investing is a personal journey. Your life, and where you see yourself in 10, 20, 30 years, should be the driving force behind the decisions you make for your portfolio(s).
The Truth About Dividend-Paying Stocks
As we find ourselves grappling with continued market volatility, hedging against further losses is likely on a lot of people’s minds.
This is where dividends can come in handy.
Dividends give unique insight into a company’s overall health and fundamentals, like profits, free cash flow, future growth, and how focused and efficient the management team is. If a dividend is able to steadily grow over time, then that shows us a company is on the right track.
This right here is a big reason why dividends can benefit you. These simple dollar payouts signal to investors that a company is in good health and that it can competently manage its cash flow.
Another big reason why dividends are important is that they become central during times of low-growth or recessionary periods. Not only can they provide a cushion for investors, but dividends can give relief during these periods as well—you can pocket that extra cash if you need to, or save it and use it in case of an emergency.
But the option of reinvesting your dividend dollars is key. By buying additional shares with the money you receive, you can grow your investments quickly and quietly, so when it comes time for retirement, for instance, you will have already generated a steady stream of revenue for yourself.
Dividends + Diversification = A Winning Combination
Now, add diversification to the equation, and your portfolio becomes even more secure.
According to Merriam-Webster, diversification is “the act or practice of spreading investments among a variety of securities or classes of securities.” This strategy is one of these easiest ways to help protect you in market slumps or downturns.
Simply put, don’t put all your eggs in one basket. Instead, spread risk across stocks, bonds, mutual funds, ETFs, and cash to ensure that you’re keeping any part of your investment portfolio(s) from being too heavily weighted in one specific company or sector.
Both dividends and diversification offer a way to hedge against macro and micro economic uncertainties. It doesn’t matter what kind of market environment we’re in—utilizing these two things will provide you ample means to boost your returns.
Identifying Today’s Most Promising Stocks
Even with uncertainty looming, there are still plenty of exciting opportunities for investors.
It makes sense to identify strong trends in the market and ride them long term.
Today, I'm offering you a chance to check out Zacks Investor Collection, which lets you track all the real-time buys and sells from Zacks' long-term portfolios, including.
• ETF Investor which gives you a simple, effective way to diversify your assets
• Income Investor, the dividend-paying service I personally manage
• Value Investor, which is perfect for today’s environment, as money is increasingly shifting from growth stocks to value
• Plus Stocks Under $10, Home Run Investor and Zacks Top 10 Stocks for 2022.
These portfolios recommended 68 double- and triple-digit winners in 2021 alone, with gains as high as +150.9%, +393.8% and even +995.2%.¹ And 2022 is already off to a strong start.
As part of Zacks Investor Collection, you’ll also get:
• Zacks Premium with powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more.
• Access to Zacks Confidential where each week you'll receive in-depth commentary exploring a timely market trend or investing strategy and 2-3 trades to capitalize on it.
• Money-Back Performance and Satisfaction Guarantees. So you're not risking a cent.
• PLUS the latest edition of Zacks' 5 Stocks Set to Double. Five Zacks experts each pick their single favorite stock to gain +100% or more in the next 12 months.
You’ll get all this for 30 days for just $1.
If you want to see the stocks we believe have the best prospects for the rest of 2022 (and beyond), I urge you to take advantage now. Don’t delay. This opportunity will end on Sunday, March 27.
Good investing,
Madeleine Johnson
Stock Strategist
Madeleine writes the weekly personal finance newsletter Money Sense and manages Zacks Income Investor portfolio.
¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position.
Image: Bigstock
How to Protect Your Assets & Profit in This Market
The Covid-19 pandemic impacted all of us in many different ways. From work to family to finances, we were forced to adapt to a “new normal” that included staying home, jumping on Zoom calls, doing puzzles, and baking a ton of sourdough bread.
It also likely changed how you invested in the stock market. But change is not always a bad thing.
While the past couple of years have been a wild ride, it has also been a time filled with opportunity for those willing to take calculated risks.
Hopefully, you’re a wiser, more nuanced investor right now than you were a year ago. You invested and traded your hard-earned cash during a once-in-a-lifetime pandemic, after all.
It’s similar to the difference between your investment mindset today versus when you just started out.
Knowledge is gained through experience, and experience guides how you manage your portfolio. You grow, you learn, you make good trades and bad ones, and then you learn and grow some more.
Opportunities Are There If You Know Where to Look
So far, 2022 has been one massive swing after another for the stock market.
We’ve been entrenched in a rollercoaster trading environment as investors contend with furious waves of uncertainty.
The war between Russia and Ukraine has heightened market concerns, and after almost a month of fighting—which has resulted in numerous sanctions leveled against Russia and its elite, millions of Ukrainian citizens forced to flee their home, and the price of oil marching higher and higher—it seems to have reached a stalemate.
Another main source of volatility this year has been the Fed’s plan to raise interest rates amid record high inflation, though investors did get some much-needed clarity last week after the central bank’s latest policy meeting.
A hawkish Fed resulted in a major tech sell-off over the past few months, and the Nasdaq is down about 11% year-to-date. High-flying growth stocks have seemingly been given the boot in favor of value and cyclical names in industries like banks and energy.
How Should You Invest in 2022?
No matter what’s happening geopolitically or which kind of stocks are in demand, the best thing you can do is stay levelheaded and stick to your long-term investment goals, as your investing style should always reflect these personal and individual objectives.
So, if you’ve recently found yourself thinking about changing up your portfolio, make sure to ask yourself questions like: when do I plan on retiring? Where do I want to retire? Do I have debt I need to pay off? Do I want to buy a home? Do I need to save for my kids’ college education? And so on and so on.
There’s a lot you have to think about before switching to or incorporating a different investing strategy.
Keep reading . . .
------------------------------------------------------------------------------------------------------
See ALL Zacks’ Long-Term Picks for Only $1
Confidently navigate today’s market with Zacks’ private investment recommendations. These picks are based on the system that has more than doubled the market since 1988 and which pointed investors to 68 double- and triple-digit winners in 2021.
Starting today, for one month, you can follow these exclusive portfolios in real time from the best stocks under $10 to Warren Buffett-style value plays to high-paying dividend stocks. Total cost $1. No gimmicks.
See Stocks Now >>
------------------------------------------------------------------------------------------------------
But no matter what you decide is best this year, always remember that investing is a personal journey. Your life, and where you see yourself in 10, 20, 30 years, should be the driving force behind the decisions you make for your portfolio(s).
The Truth About Dividend-Paying Stocks
As we find ourselves grappling with continued market volatility, hedging against further losses is likely on a lot of people’s minds.
This is where dividends can come in handy.
Dividends give unique insight into a company’s overall health and fundamentals, like profits, free cash flow, future growth, and how focused and efficient the management team is. If a dividend is able to steadily grow over time, then that shows us a company is on the right track.
This right here is a big reason why dividends can benefit you. These simple dollar payouts signal to investors that a company is in good health and that it can competently manage its cash flow.
Another big reason why dividends are important is that they become central during times of low-growth or recessionary periods. Not only can they provide a cushion for investors, but dividends can give relief during these periods as well—you can pocket that extra cash if you need to, or save it and use it in case of an emergency.
But the option of reinvesting your dividend dollars is key. By buying additional shares with the money you receive, you can grow your investments quickly and quietly, so when it comes time for retirement, for instance, you will have already generated a steady stream of revenue for yourself.
Dividends + Diversification = A Winning Combination
Now, add diversification to the equation, and your portfolio becomes even more secure.
According to Merriam-Webster, diversification is “the act or practice of spreading investments among a variety of securities or classes of securities.” This strategy is one of these easiest ways to help protect you in market slumps or downturns.
Simply put, don’t put all your eggs in one basket. Instead, spread risk across stocks, bonds, mutual funds, ETFs, and cash to ensure that you’re keeping any part of your investment portfolio(s) from being too heavily weighted in one specific company or sector.
Both dividends and diversification offer a way to hedge against macro and micro economic uncertainties. It doesn’t matter what kind of market environment we’re in—utilizing these two things will provide you ample means to boost your returns.
Identifying Today’s Most Promising Stocks
Even with uncertainty looming, there are still plenty of exciting opportunities for investors.
It makes sense to identify strong trends in the market and ride them long term.
Today, I'm offering you a chance to check out Zacks Investor Collection, which lets you track all the real-time buys and sells from Zacks' long-term portfolios, including.
• ETF Investor which gives you a simple, effective way to diversify your assets
• Income Investor, the dividend-paying service I personally manage
• Value Investor, which is perfect for today’s environment, as money is increasingly shifting from growth stocks to value
• Plus Stocks Under $10, Home Run Investor and Zacks Top 10 Stocks for 2022.
These portfolios recommended 68 double- and triple-digit winners in 2021 alone, with gains as high as +150.9%, +393.8% and even +995.2%.¹ And 2022 is already off to a strong start.
As part of Zacks Investor Collection, you’ll also get:
• Zacks Premium with powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more.
• Access to Zacks Confidential where each week you'll receive in-depth commentary exploring a timely market trend or investing strategy and 2-3 trades to capitalize on it.
• Money-Back Performance and Satisfaction Guarantees. So you're not risking a cent.
• PLUS the latest edition of Zacks' 5 Stocks Set to Double. Five Zacks experts each pick their single favorite stock to gain +100% or more in the next 12 months.
You’ll get all this for 30 days for just $1.
If you want to see the stocks we believe have the best prospects for the rest of 2022 (and beyond), I urge you to take advantage now. Don’t delay. This opportunity will end on Sunday, March 27.
Good investing,
Madeleine Johnson
Stock Strategist
Madeleine writes the weekly personal finance newsletter Money Sense and manages Zacks Income Investor portfolio.
¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position.