Some stocks are actually thriving during this pandemic
Seeing these stock prices spike following the market downturn might seem like an exciting opportunity to get in on the action. However, just because a stock is performing well now doesn’t mean it’s a quality investment.
It’s important to consider what will happen when lockdown orders are lifted. Are these companies dependent on the current situation to thrive, or are they serving a need that will exist when we return to some semblance of normality? Have stock values reached their peak, which would mean buying high and at inflated prices, or are they projected to continue growing for years to come? Choosing the right stocks to add to your portfolio depends on much more than what’s happening right now.
That said, if you want to research potential investments that are outperforming the overall market or even growing during the pandemic, O’Shea recommended using a stock screener to compare the performance of various companies to a benchmark like the S&P 500. And keep in mind how stocks fit into your overall financial plan. “In general, it’s best to keep individual stocks to 10% of your portfolio or less; the rest should be invested in low-cost index funds that allow you to diversify your portfolio across all sectors of the stock market, not just one industry or company,” O’Shea said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Stocks are overvalued’: Wall Street heavyweights sound the alarm about marketsLegendary investors Stan Druckenmiller and David Tepper the latest to weigh in, saying risk-reward of holding shares worst they’ve seen in years
Read more »
Alberta Woman Now Married To Man Who Saved Her In Las Vegas Mass ShootingChantal Melanson's big wedding to Austin Monfort was postponed due to the coronavirus pandemic.
Read more »
ICBC saves $158M from fewer crashes during pandemicICBC has saved about $158 million because there have been fewer crashes during the novel coronavirus pandemic, a new report released Thursday shows.
Read more »
Ottawa earmarks $469M for fish harvesters amid coronavirus pandemicPrime Minister Justin Trudeau today announced the support, which will come in the form of an industry-specific benefit and a grant.
Read more »