Forget “The Market” — Invest in These Stocks Instead!
“The market is trading lower following Fed comments…”
“No wait, the market is rebounding after comments on states re-opening…”
“Comments from this legendary investor has the market selling off again…”
Is anyone else sick of all these reports of what “the market” is — or is not — doing on a minute by minute basis?
And is all of that information really helping us to grow and protect the retirement wealth you’ve worked so hard to build?
Today, as we begin a brand new week of trading, I want to show you a better way to look at your investments… One that makes a lot more sense than following the day to day gyrations of this market. And one that will leave you with more income — and more security — than following some of this silly market action.
Best of all, I’ll show you some of the superstar stocks that can truly help you grow your income.
Be Careful What You Listen to
The information age has been both a blessing and a curse for individual investors.
On one hand, you and I now have access to breaking news, detailed stock research, and expert opinions that used to be only available to professional stock investors.
That information can be really helpful in figuring out how to invest for retirement!
On the other hand, too much information can actually lead to bad decisions. Especially if you just skim the headlines without really looking into the details.
For instance, over the last few weeks, we’ve seen stocks trade higher and lower on conflicting news surrounding the coronavirus spread, unreliable data on how the virus is affecting the economy, and speculative opinions on policy moves to help consumers and businesses recover.
In many cases, there is a strong temptation to sell when the news appears to be bad, and then to buy investments back when the news appears to be improving.
But this can have a devastating effect on your wealth. Because ultimately this type of action leads to buying at higher prices, selling at lower prices, and giving your retirement wealth away bit by bit.
That’s no way to manage your retirement!
(Fortunately, there’s a much better way which we’ll get to in a moment…)
What Is “The Market” Anyway?
Every single trading day, you will hear the news media talking about “the market” trading higher or lower.
But what does it really mean for “the market” to move? And how does that movement really affect your retirement?
Typically, when you hear that the market is higher or lower, the media is talking about a key index like the Dow Jones Industrial Average, the S&P 500 Index or the NASDAQ Composite.
If you’re invested exclusively in one of these indexes, then the percentage gains or losses you see may be applicable to you.
But each index has its own set of flaws based on how it is combined.
For instance, the Dow is a “price weighted” index that gives a lot more importance to stocks with higher share prices. So a stock like Apple Inc. (AAPL) with a share price above $300 would have roughly 8 times the importance of Walgreens (WBA).
As an individual investor, would you really invest 8 times more into one stock like AAPL? Probably not!
The S&P 500 has its own set of problems. While the index represents 500 of the largest publicly traded U.S. companies, the top 5 stocks in this group make up about 20% of the index.
Again, it’s unlikely that you would have 20% of your retirement in five stocks, and then spread the rest of your wealth among 495 other stocks. That just wouldn’t make a lot of sense!
(Plus, you might not want to be invested in some of the biggest most expensive companies that are included in these five biggest positions.)
The bottom line is that when you hear news that “the market” dropped by so many points, or advanced by a certain percent, that headline may not have much bearing on your own retirement. So it probably doesn’t make a lot of sense to make too many investment decisions based on what “the market” is doing.
So what should you be watching to better grow your wealth and build investment income?
Focus on Strong Companies Instead
Here at The Daily Edge, we spend the majority of our time looking for great companies with reliable profits. This way, we’re not distracted by what the flawed stock indexes are doing, and we can focus on where the real wealth is being generated.
This focus is especially important in today’s environment. That’s because the coronavirus crisis is causing some very specific challenges for some companies, while also opening up some very important opportunities for others!
For instance, the virus has caused more people to work from home, increasing the need for reliable and secure internet connectivity across the country.
This need will only accelerate the buildout of 5G networks, which will naturally lead to higher profits and bigger dividends for our 5G Cash Tower opportunities.
On the retail side, Wal-Mart (WMT) is one of my favorite dividend stocks, and the company has seen a major spike in online sales as people order necessities through the company’s web portal.
In competing well against Amazon.com (AMZN), WMT has gained the trust of loyal consumers. And its strong business should lead to bigger dividend payments in the near future.
Gold and other precious metals represent another area of strength in this market.
With trillions of dollars being spent on stimulus payments, many are concerned about the long-term value of the U.S. dollar. Of course, one of the best ways to protect your wealth from this risk is owning gold or silver.
Today, prices of gold and silver are trending higher. And one dividend stock — Wheaton Precious Metals (WPM) gives you a great opportunity to grow your wealth as the stock price trades higher, and also lock in dividend payments funded by the company’s profits.
By ignoring the day-to-day fluctuations in the market, and the sensational headlines in the media, you’ll be able to steadily grow your wealth over time, and enjoy growing dividends from the companies you invest in.
That’s a much more secure approach to retirement. And it’s an approach that can let you sleep at night without worrying whether the next wave higher or lower will affect how you can live out your golden years.
I hope you’re taking advantage of these great income opportunities, and protecting your wealth even through these challenging times in our economy.
Here’s to growing and protecting your wealth!