Diversify your investment portfolio with different kinds of stocks. Growth stocks are the wave of the future. These are companies that, even if they are not making much money now, show tremedous potential for the future. Pinterest (PINS) is a good pick here, and even Amazon (AMZN) still has a lot of growth potential for the future.
Value stocks are companies that seem to be under priced based price-to-earnings ratio and other key metrics. I’m recommending an exchange traded fund here to avoid the risk of investing in individual stocks. The iShares Russell 1000 Value ETF invests in a broad spectrum of value stocks with a creative investment strategy and is in my opinion the best pick here.
Defensive stocks help balance your portfolio because they tend to do well when the rest of the stock market is down. When the market is down people tend to delay the purchase of a new car, so I’m recommending an auto parts company here. There are many great publicly traded auto parts companies, but in my opinion the best bet is AutoZone, Inc. (AZO).
Purchase sector stocks when you are betting on a whole segment of the market. The list of sectors is many and varied and includes Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Information Technology, Telecommunication Services, Utilities, and Real Estate. My sector recommendation here is to avoid retail sector stocks, because coronavirus and convenience make online shopping the wave of the future. Brick and mortar stores are on the way out.