Whether you’ve been investing for decades and are finally ready to join a top-rate investment community or you’ve never even traded a stock, you’re making the right moves by reading Angel Publishing Investment Research.
In order to get your leg up in the stock market, there are a few key boxes to check off your list.
We dedicate our careers to doing a lot of the heavy lifting that it takes to be successful in the market. Many of us have been investing since before the tech bull market of the late 90s/early 00’s and for the subsequent crash that followed.
We’ve weathered storms and enjoyed the fruits of bull markets. We’re here to offer you all of the expertise we can provide you. We also recognize that investing takes time–a valuable resource that not everyone has an abundance of. So we try to save you hours of time sifting through financials to provide some of the top opportunities in the market, before they’re reported on major financial media sites.
In case you’re a virtuoso and would like to learn the process from start to finish, don’t skip anything. If you already have a good handle on the market and want to see which stocks we’re recommending RIGHT NOW then skip to the last section. Without further adieu, here are the building blocks of becoming a successful investor…
Get to Know Yourself
The first thing to do isn't to get to know the market — it's even more basic: Get to know yourself.
This means taking into account not only your own reactions and tendencies, but also your investment needs, goals, and capabilities.
First, consider your personality and how that could play into your investments. If you would panic after any loss in your portfolio, it may be wise to stay away from high-risk investment strategies. If, however, you would remain steady and wait for a rebound, or take time to review the company information and issues surrounding the drop, you might not fare too poorly with something a bit more risky.
You are probably choosing to invest for a particular reason. But don't think of investing as a get-rich-quick scheme. While you can use the stock market as an avenue to make leaps and bounds with your financial gains, it is best to keep in mind that “slow and steady” can and will produce outstanding results in the market.
Even billionaire investors like Warren Buffett and George Soros think of investing as a means by which to stay where they are, or save and gradually build wealth. This mentality will help you make more informed, wiser choices.
So second, consider your goals: Are you saving for retirement? Setting aside money for a child's education? Looking to save up for a house or a car? If you set out clear goals for your investments, you can more easily tailor them to your needs.
The third thing to do is make yourself aware of your situation — and what that means for your finances. Being married with children puts you in a different financial boat than if you're single and don't have financial dependents. It will also control how much you are able to safely invest. You don't want to risk it all in the hopes of growing your wealth quickly and greatly. Be aware of your capabilities.
Do you have a lot of outstanding debt? Debt is another thing you must consider when investing. If you have high-interest debt and plan on investing before you pay it off, you might not be as satisfied as you anticipate. The odds are low that the return from your investment is going to surpass a high interest rate, so plan on settling those debts before investing, not after — otherwise, you could become buried in even more debt.
As a final step in covering your finances, you should make sure you have money set aside. This should be separate from any additional money toward your investment goals, day-to-day expenses, and regular bills. Call it an emergency fund and make sure you have enough in case something unanticipated occurs.
This may be something you already have. It's a smart move for anyone, as you can never anticipate what sort of unexpected incidents might occur in which you'll need additional cash: emergency car or home repairs, medical bills, unemployment.
All in all, you want to make sure you are really ready to invest. Have your finances in order and think the whole thing through.
And if you're ready, start investigating...Play Detective
Now it's time to look carefully with a sharp eye at all your options.
You need to do your research, dig deep into individual companies and larger investment options, and determine where you should begin.
This part of the process can be overwhelming because of the number of options available.
Here's a brief rundown of some investment options:
Stock – Purchasing a company's stock gives you partial ownership of that company. If you own a common stock, you have voting rights at shareholders' meetings, and you will receive periodic dividends. If you own a preferred stock, you cannot vote, but receive priority in terms of dividends and in the event of a company bankruptcy.
ETF – An ETF, or exchange-traded fund, tracks an index, a commodity, or a basket of assets. In this way it has been compared to a mutual fund, though like a stock it can be traded throughout the day on an exchange. These investments have high liquidity, low fees, and no minimum investment, making them attractive to investors.
Bond – You can buy a bond from a company or the government, and it functions as a sort of IOU. Essentially, as a bond holder, you loan money to the institution, and your money accrues interest. As long as you hold your bond to maturity, you will get back the face value plus interest.
Mutual Fund – Like an ETF, a mutual fund tracks multiple assets, a group of stocks, or bonds. A number of investors will pool their money into one mutual fund, and a money manager will take charge of investing the funds. Because the fund is professionally managed, it can be attractive to investors who wouldn't otherwise have access to something like this.
Remember, this is just a very brief list. Every one of these investments carries risk, and there may be other options that are better for you.
Do your own due diligence and look into each of these options more thoroughly — taking your goals into consideration — before deciding how you would like to build your portfolio.
Secrets of the Trade
There's an unwritten set of rules that successful investors follow when building or adding to their portfolios.
Knowing these tricks of the trade will help you become a smart, strategic investor.
Diversify your portfolio. One of the critical things many first-time investors don't know to do is to diversify their portfolios. Too often investors get stuck in a rut, picking assets from the same industry or a number of assets that are directly affected by one another. Put that way, I'm sure you can see where the problem is: If one falls, they all fall. The number one thing you should do when choosing your investments is diversify your portfolio. You could invest in a number of individual stocks or mix stocks and indexes. But again, make sure you diversify asset classes.
Have a buy price and a target price. When you're looking to purchase a stock, you should set a target range in which you will buy. Then set up a target price at which you plan to sell the stock. If you have this planned in advance, there will be no deliberating about how to handle the situation if the stock you're watching rises or falls. You can estimate the stock's value by looking at the company's discounted cash flow analysis, and this can help you determine how high it might go so you can set a realistic target price. You don't want to wait so long that the stock falls again, but you do want to give it some room to move around.
Make time. If you're serious about investing, you should know that you'll need to set aside time to keep a sharp eye on your investments and the companies or establishments that hold them. Stay up to date on the latest news from these establishments and watch for any upcoming news that may move the stock one way or another. This doesn't have to command all your time, but you should take a little time at the beginning or end of each week to read up on the company's financial and news updates.
Don't be another sheep in the flock. If everyone jumped off a bridge, would you? That same phrase Mom used when she wouldn't let you get your way should become your mantra for investing. Doing the same thing as everyone else can lead you to risky investments or poor choices. Never do something just because the herd makes it seem appealing. Use your own judgment and the hard facts of company numbers.
By reading Angel Investment Research’s daily e-letters you will not only check these boxes, but will have confidence behind every trade you make which is an amazing feeling.
So now that we’ve gotten the basics out of the way, here are our top stocks for some of the market’s fastest growing sectors.
Stocks to Add to Your Portfolio RIGHT NOW
Abbott Laboratories (NYSE: ABT)
Abbott laboratories is a biotechnology company that focuses on the creation and sales of technology that range from nutritional supplements to pharmaceuticals and medical devices. The company is pretty large, employing 113,000 people and teetering on a market cap of $190 billion. At the time of writing, shares are trading for just over $107, which is on the lower end of the stock’s 52 week range ($101.24-$142.60). Their current dividend rate is 1.71%
ABT currently has a PE ratio of 22.38, which compared to the S&P 500’s ratio of 31.2 makes this stock arguably undervalued.
Since December 2021, Abbott has not received much good news from Mr. Market. Minus a few good days here and there, the stock has been on a steady decline. But here’s the thing — there is no real reason for it.
Back in January 2020, the stock was trading around $87. Then the world came to a halt as the coronavirus spread from Wuhan and took the globe by the throat. Companies across various exchanges took a massive hit along with billions of investors’ portfolios.
But Abbott Labs? They managed to hit their lowest point, $77.03 just one month after the infamous crash. From February 2020 until December 2021, ABT went on a tear–rising from $77.03 to $140.74. While the stock has lost momentum along with the rest of the market, it is a company that has proven it can weather storms. And more importantly than weathering storms, it has proven it can innovate, create new products, and find a way to bring in sales while the world is plagued with a series of logistical issues.
While investing $1,000 in ABT probably won’t make you a millionaire, it can provide you with shares in a company that will stand the test of time and pay a dividend in the process.
Cheniere Energy, Inc. (NYSE: LNG)
Cheniere Energy is the largest producer of LNG in the U.S., and the second largest LNG operator anywhere in the world. The company’s LNG fuels dozens of markets on five continents, where the demand is expected to surge even higher as world leaders seek clean, conflict-free power sources.
In the past few years, Cheniere has devoted huge amounts of capital to expansion. Management knows the days of dirty fossil fuels are numbered, but LNG still has an important role to play during the seemingly endless transition to renewable energy.
Most recently, the company posted excellent earnings for the second quarter of fiscal 2022. A full year of relentless expansion and optimal natural gas pricing lead the company to upgrade its full-year earnings guidance by a whopping $2 billion.
The secret to this company’s long-term success is simple: close to 85% of Cheniere’s total LNG capacity, either completed or under construction, is locked down under long-term take-or-pay style agreements with only the most trusted buyers.
That provides Cheniere with both stability and lucrative opportunities. These contracted cash flows combined with short-term options in the broader market give Cheniere a constant source of reliable income.
That means that even during difficult times in the market, Cheniere is still getting paid — even if customers try to flake out on the deal. Luckily for investors, the natural gas market is currently experiencing the exact opposite of difficulty.
Cheniere has already contracted out most of its forecasted LNG production this year, according to finance chief Zach Davis. Deals for future output are being struck as we speak.
IBM (NYSE: IBM)
I know what you're thinking — IBM is in the top 50 largest companies on Earth. It’s not exactly an undiscovered gem.
But hear me out. This is not the same IBM that you’re used to.
Originally founded back in 1911, International Business Machines was an undeniable powerhouse in the tech industry. Some of the most important developments in computing history originated in the company’s laboratories.
But in the past decade, IBM’s role as an IT service provider returned mediocre results. The company was stagnating as the rest of the rest of the industry moved away from hardware and into the cloud.
That all changed in 2019. IBM used its aristocrat status to thrust itself into the cloud market. The company staged a massive $34 billion takeover of Red Hat, a top-tier open source software provider, and spun off the rest of its IT affairs into Kyndryl (NSYE: KD).
Since then, share prices have held remarkably steady. In fairness, we don’t expect triple-digit returns for anyone in the tech industry during 2019-2022.
But IBM was dealing with a drastically reorganized business model, an ongoing pandemic, and the resulting supply chain crisis that came with it, and still came out ahead. Very few of its competitors can say the same.
Most recently, IBM’s earnings for the second quarter of fiscal 2022 prove that the company is on sound financial footing. Revenue of $15.54 billion beat the analyst consensus of $15.18 billion, and more than 250 clients joined the company’s hybrid cloud infrastructure program.
It’s easy for investors to overlook IBM because of its past history. The company’s nearly 40 years on the stock market has seen its share of ups and downs. But the new version of IBM is a different beast entirely.
Wall Street is almost unanimous: IBM is a stock you want to own.
Field Trip Health Ltd. (OTC: FTRPF)
Field Trip Health is one of the most interesting plays in the biotech sector, hands down. It represents a completely new field of therapy that has enormous potential in the U.S. market.
Field Trip Health specializes in ketamine-assisted psychotherapy, a newly-approved treatment that many investors have never even heard of. It’s a radical idea, but the clinical trial results speak for themselves.
Ketamine was first approved by the FDA in the 1960s, strictly as an anesthetic. Later, particularly in the 1990s electronic music scene, it became popular as a recreational drug. The stigma surrounding its use prevented any further research being done on ketamine’s potential alternative uses.
In 2019, wave after wave of successful clinical trial results achieved the impossible: they made the FDA change its mind. Sprivato, a ketamine nasal spray, was officially approved for treating depression.
Plenty of clinical options exist where you can get a ketamine infusion. The issue that Field Trip Health addresses is that depression is not just chemical. It’s contextual, situational, and unpredictable.
Field Trip Health combines therapy, counseling, and infusions in a calming environment — not a sterile medical facility. This is not simply a marked-up ketamine retailer like many of Field Trip’s competitors.
Being in such a young market means this play is shockingly cheap. Shares are trading for under five bucks. But this is only the beginning for this market.
Ketamine is far from the only psychedelic with potential as a medicine. Psilocybin, the main compound in “magic” mushrooms, and MDMA, the chemical in ecstasy, are also on their way to FDA approval.
The global psychedelic therapy market is forecasted to reach $8 billion by the end of the decade. As one of the earliest players in the game (Field Trip opened its doors in Canada back in 2019), this is the type of company that investors are looking for.