Choices.
Some are as easy as choosing chicken or fish for dinner.
Others are a little trickier.
Like the stocks to put in your investment portfolio.
Not to worry: That’s why we’re here to help!
I’m going to help you narrow down the choices in Part 2 of our Winning Investor Daily series: “Build Your Next-Gen Portfolio in 3 Easy Steps.”
In fact, I’ll share five stocks that you may trade in for one next-gen 2.0 exchange-traded fund (ETF) today.
As I mentioned in Part 1 of this series, to build the strongest 2.0 investment portfolio, you have to follow three important steps: preparation, choice and maintenance.
Today, your next step is making the choice to weed out troubled 1.0 companies.
I’ve identified five stocks that you should clear out of your next-gen portfolio to lock in the biggest gains when the next bull market in our innovative stocks begins.
5 Companies to Sell Now
Here are the companies that made the list:
*Does not pay a dividend.
These five companies personify 1.0.
Remember: 1.0 publicly traded companies feature one or more of the following financial characteristics:
- Declining sales over the past three to five years.
- Buying back stocks and lifting dividends despite having declining business, as seen by declining sales.
- Borrowing money, and if sales are declining, effectively borrowing to buy back stocks and pay dividends.
- Buying companies at irrational valuations that have no real chance to change their underlying businesses.
- Facing technological obsolescence.
- Losing market share to new companies because their brands are falling out of favor, or because their products or services are considered out of touch with the times.
- Facing the prospect of having to move their plants and factories to other countries without the cash to do it.
The companies listed above are unfortunately comprised of one or more of these financial challenges. That buys them a spot on our “Avoid” list.
Now that you know what NOT to buy, let’s switch gears. Let’s step into the next-gen 2.0 world.
Prime Stock-Picking Environment: The Best ETF for the Future
1.0 companies facing these financial challenges will soon fade away.
The key to building a next-gen portfolio for future stock growth is to rid it of fading 1.0 companies and sow it with 2.0 companies. One of the best ways to do that is by focusing on our Winning Investor Daily mega trends:
Right now, we’re living in a prime stock-picking environment.
The bear market in our innovative stocks have created an opportunity to scoop up shares at a discount.
But to profit over the long term, investors need to make sure they’re choosing the best stocks from our specific next-gen mega trends.
These stocks will be the first out of the starting gate, propelling higher, as inflation subsides and the U.S. economy recovers.
One of the very best 2.0 ETFs you can buy today is the ARK Innovation ETF (NYSE: ARKK).
This ETF holds 36 of today’s most innovative companies.
ARKK invests in companies that are relevant to the theme of disruptive innovation!
This is our focus: disruptive innovations.
With that said, I look forward to wrapping up this series with you on Thursday, September 8, in “Part 3: Maintenance.”
Until then, please feel free to follow Ian and me on Twitter for a daily dose of timely investment information, keeping up with the next generation of stocks.
You may find us at @InvestWithIan and @ALancasterGuru.
Also, if you haven’t had an opportunity to do so, please check out your Winning Investor Daily YouTube channel!
This YouTube channel that’s chock-full of free content is made with you in mind.
Every Monday, Ian and I have a discussion on the markets in our Market Insights webinar.
And on Thursdays and Fridays, we each take deeper dives into topics affecting our mega trends and next-gen effect investments.
So please subscribe and click the bell notification so you’ll know immediately when a new video posts.
We look forward to seeing you there!
Until next time,
Amber Lancaster
Director of Investment Research, Strategic Fortunes
Disclaimer: We will not track any stocks in Winning Investor Daily. We are just sharing our opinions, not advice. If you want access to the stocks in our model portfolio with tracking, updates and buy/sell guidance, please check out Strategic Fortunes.