We’re only twelve days into November, and the volatility that has impacted the market since October may not be over. While there have been some strong stocks rally days this month, there is still some hesitation in the market thanks to inflation and incoming interest rate hikes.
Investors, particularly those that trade less and are more interested in long term portfolios, can have trouble finding winners in such a confusing market.
Some analysts believe that the best results will come from the stocks that have the strongest mid-term performance.
The Collective Stocks Returns Come from the Top 20%
Longboard research released data last week showing that the top 20% of all stocks accounted for all market highest growth between 1989 and 2015. If investors were to invest only in the lower 80%, then their gains over that period would have been nil.
The key concept is that growth stocks, i.e. those that are producing consistent returns, are statistically safer.
There’s no single trick to succeeding as an investor and there’s no real way to predict the best in the long term. However, data like this makes a compelling argument to invest in the top stocks while they’re up.
Considering this information, the best from the last month could make strong picks for this week.
- Red Hat Inc. (NYSE: RHT) – The company is going through approval for a sale to IBM, which has sent investor confidence skyrocketing. Stock is up 41.83% over the last month.
- L Brands Inc. (NYSE: LB) – Has grown 16.32% in the last month. Retail stocks could be strong this holiday season.
- Twitter Inc. (NYSE: TWTR) – The social media network continues to be one of the most dominant forms of online communication. Even the President prefers this platform. Stock is up 21.76% over the last month.
- TripAdvisor Inc. (NASDAQ: TRIP) – Continues to grow as a platform for travel information and social networking. Stock is up 39.58% for the month and a strong 83.69% for the year to date.
- Starbucks Corp. (NASDAQ: SBUX) – The multinational coffee giant has had an excellent year despite volatility and is up 21.52% over the last 30 days.
While the nature of the stock market means that any of these stocks could lose ground in the next 30 days, their recent performance makes it less likely to happen. If you want to be on the winning end of the investment market then carefully considering stock like these could help to strengthen your portfolio, at least in the mid-term.
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