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15 Reasons to Keep Investing Right Now

Author: Rachel Warren | June 11, 2021

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Is another market crash coming?

In these uncertain market times, you might be wondering whether there are still viable opportunities for long-term investors or if it’s better to wait until things have settled down to continue building up your portfolio. The short answer is a resounding yes -- strong buying opportunities still abound for investors who can focus on the long-term potential of a quality stock rather than the near-term volatility impacting the broader market.

If another market crash or correction is around the corner, it’s important to make sure your investments are thoroughly diversified and that your assets are allocated according to your preferred level of risk so that your portfolio is better equipped to handle whatever happens next. Now more than ever, you should direct your stock-buying efforts toward high-quality companies that you can keep in your portfolio for years to come

There is one key caveat here. If your savings are low and you don’t have much by way of living expenses set aside should another crash or recession hit, it may be best to focus on building your nest egg up before you put more cash toward portfolio growth.

Otherwise, if your nest egg is on track and you have extra cash on hand, here are 15 reasons you should continue to invest despite the volatility of the current market.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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1. It's a great time to buy high-end stocks at a bargain

Whether because of the pandemic or the current streak of volatility that’s afflicting the market, there are plenty of high-quality stocks trading at real bargains at the moment.

Of course, you shouldn’t buy a stock just because it’s cheap. It’s important to evaluate any prospective stock buy in the context of its risk profile, durable competitive advantage, long-term growth and/or value potential, as well as its ability to contribute to your overall portfolio goals.

ALSO READ: 3 Bargain Stocks You Can Buy Today

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2. High-quality cannabis stocks have marked astounding growth over the past year and are on track for continued rapid gains

Not all cannabis stocks are created equal, but some real winners have emerged from this industry through the market mayhem of the past year. The top marijuana stocks aren’t just marking astounding balance sheet growth -- many of these companies are also trading at new premiums and making investors richer in the process.

However, before you invest in marijuana stocks, you should consider a range of factors to assess both the growth and risk potential a particular company poses to your portfolio.

Ask yourself, how does the company stack up against its competition? What’s the structure of its business (is it an ancillary provider, retailer, grower, etc.)? Does it operate in the medical-use or recreational cannabis arena, or both? What is its financial picture? Is there consistent demand for its products/services in line with broader trends in the cannabis industry?

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3. Top healthcare stocks remain stable investments for the long-term investor's portfolio

The best healthcare stocks continue to pose stable investment opportunities that long-term investors shouldn’t overlook when searching for ways to add both growth and value to their portfolio.

From pharmaceutical stocks to medical device stocks to health insurance stocks, these companies operate in industries that produce consistent demand in a wide variety of economic environments and make for particularly compelling investment opportunities during times of market volatility.

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4. Some tech stocks are extra volatile right now, but attractive buys in this sector continue to abound

It’s no secret that many top stocks across the tech industry have had their fair share of ups and downs in recent weeks. But great companies aren’t suddenly less so because of a few months or weeks of share price declines, and investors could have a unique window of opportunity right now to snap up some premium stock buys for a serious discount.

At the same time, a number of top tech companies have continued to mark consistent share price increases despite volatile trends in the sector and are proving recession-resilient plays that investors can depend on year after year for notable portfolio growth.

ALSO READ: 3 Dividend-Paying Tech Stocks to Buy Right Now

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5. Top fintech stocks keep winning amidst ongoing market uncertainty

Another industry that should pique investor interest and is chock-full of mouthwatering buying opportunities at the moment is fintech. Companies that are leading the way in areas like person-to-person payments and online payment processing are playing an essential role in the increasingly digital society we live in and are frequently characterized by both above-average earnings and share price growth.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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6. Ups and downs are normal when investing in the stock market

If the current state of the market has you down, try to remember that volatility is perfectly normal in a cyclical market. While some sectors are more vulnerable to cyclical changes than others, there are benefits to investing both in times of market highs and lows, and shrewd long-term investors know how to capitalize on the upsides of both.

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7. Forward-thinking investors shouldn't lose sleep over short-term volatility

As a long-term investor, you’re not buying a stock for the growth it can bring to your portfolio in the next few weeks or months. You’re thinking about the larger picture. Generally speaking, you shouldn’t hold a stock for a period of time shorter than three to five years at bare minimum.

Therefore, when you put a few weeks or months of excess market volatility within the broader context of your portfolio goals and long-term investment horizon, these near-term bumps in the road shouldn’t cause you to lose sleep or rush to sell off temporary laggards in your portfolio. Stick to your investing strategy and keep your eyes on the long-term picture when you buy new stocks.

ALSO READ: 3 Reasons Not to Worry About a Stock Market Crash

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8. You can prepare your portfolio for the next market crash

Another reason to keep investing right now if you have liquidity to spare is that this window presents a prime opportunity to get your portfolio ready for the next market crash. Now is the perfect time to evaluate what weaknesses may have dragged your holdings down in the last market crash, what areas could benefit from further diversification, the current level of risk present in your portfolio, and whether your asset allocation is aligned with your current long-term investment goals.

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9. You can use this time to invest in stable stocks primed for long-term growth

To follow up from the last slide, if you’re concerned about how your portfolio might fare when the next market crash or correction hits, you can use this time to add more lower-volatility eggs to your basket of stocks.

These types of investments won’t typically deliver superfast portfolio growth, but they’re also more likely to exhibit resilience and continue generating solid balance sheet gains during times of economic downturn.

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10. There are still plenty of high-growth stock plays for shrewd investors to scoop up

The era of fast-paced growth plays is far from over, and there are plenty of high-octane stocks with massive upside potential for investors to jump on even in today’s volatile market situation. That being said, it’s always a good idea to assess higher-risk, high-reward investments in light of your personal risk tolerance and overall portfolio objectives.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Previous

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11. It might be the perfect time to rebalance your portfolio

Yet another powerful reason to continue investing right now if you’re in a position to do so is that your portfolio might be in need of some rebalancing. Most investors need to rebalance their portfolio now and then, whether due to fluctuations in their personal risk preferences, long-term portfolio objectives, or simply because of changes in overall asset performance that have occurred through the course of the years.

ALSO READ: The Smartest Stocks to Buy With $300 Right Now

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12. You should be focusing on your long-term investing outlook

One of the many benefits of long-term investing is that you remove the undue pressure that comes with short-term trading. This benefit is particularly amplified in volatile markets.

A short-term investor buys and sells a stock within a few hours, days, or weeks. Not only is there a considerable chance of making emotional investing decisions, but the likelihood that the investor will take on serious risk and could lose a lot of money is remarkably high.

On the flip side, when you invest for the long term, the likelihood that you will not only ride out near-term market storms but consistently grow your portfolio over time heightens exponentially. Rather than opening and closing positions within a narrow window -- which accrues greater time and expense and which has the same ultimate likelihood for success as playing the lottery -- long-term investors focus on buying quality stocks that they can hold for years at a time.

This fact can help to deflect some of the angst that often accompanies short-term volatility in the market while helping you to make better investing decisions over the long run.

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13. It's always the right time to diversify your investment portfolio

Portfolio diversification is one of the key tenets to success as a long-term investor. Not only is a diversified approach to investing an optimal way of driving above-average portfolio returns, but this strategy can also help your portfolio thrive when the market is down because you won’t be overly reliant on a single company or industry.

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14. Ongoing hype over meme stocks is a new factor contributing to current market volatility

Historically, there are a great number of factors that drive market volatility. However, in recent months, mania induced by Reddit retail traders over meme stocks is one factor driving new volatile trends in the broader market.

These meme stock frenzies tend to focus on struggling companies. Typically, a wave of retail investors rushes to buy a stock, which causes its price to hike temporarily. Then follows another wave of these investors closing out their positions in the stock or cashing out, which causes the price of the company to plummet back downward again.

This kind of hype in the investing world is the new kid on the block, and it’s certainly responsible for some of the volatility investors are seeing in the current market. This reality shouldn’t change your investing strategy or your approach to buying stocks, but it’s something to be aware of when evaluating companies for your portfolio.

ALSO READ: 3 Meme Stocks That Could Make You Rich

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15. Volatile markets don't last forever

In a cyclical market, the reality is that volatility won’t last forever. So if you’re struggling to keep emotions out of your investing decisions right now, try to stay calm and realize that these fluctuations are not only normal but an inevitable part of investing. Drown out the noise of market panic and focus on buying only high-quality stocks that you can hold and depend on for growth for the long run.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Previous

Next

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Building a portfolio that can generate market-beating returns

Investing and building wealth through the stock market doesn’t have to be complicated. And the truth is that most successful long-term investors implement a strategy that is somewhat unique to them to pursue their optimal portfolio performance.

If you haven’t done so, now is a great time to assess your long-term investing goals and think about where you want your portfolio to be in five, 10, or 20 years. Consider your level of risk tolerance. Examine where your portfolio might be vulnerable if the market crashes again.

There’s no secret sauce when it comes to investing. It’s simple. A long-term investment strategy combined with a diversified stock-buying methodology is the single best means of achieving and maintaining desirable portfolio returns that you can depend on for years to come.

The Motley Fool has a disclosure policy.

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