The stock market is a great tool to generate wealth for the future and missing out on the best stocks can be the difference between being well off & being a billionaire. So how do you pick the right stocks to buy? And how do you know which ones can generate wealth for you in the future? This blog will answer these questions and more.
Let’s look at how stocks from various sectors have performed during the pandemic. And if you’d rather let an expert do the stock-picking for you, read this blog for Indian Stock Advice & head here for US Stock Advice.
How Did Consumer Staple Stocks Perform Vs Consumer Discretionary Stocks?
Before jumping into the facts related to performance, let us understand what Consumer Staples and Consumer Discretionary goods mean.
Consumer Staples
Essential commodities like food, hygiene products, household goods, beverages, etc.
Non-cyclical in nature
Can never go out of demand
Demand is almost always constant
Consumer Discretionary
The stock market is a great tool to generate wealth for the future and missing out on the best stocks can be the difference between being well off & being a billionaire. So how do you pick the right stocks to buy? And how do you know which ones can generate wealth for you in the future? This blog will answer these questions and more.
Let’s look at how stocks from various sectors have performed during the pandemic. And if you’d rather let an expert do the stock-picking for you, read this blog for Indian Stock Advice & head here for US Stock Advice.
How Did Consumer Staple Stocks Perform Vs Consumer Discretionary Stocks?
Before jumping into the facts related to performance, let us understand what Consumer Staples and Consumer Discretionary goods mean.
Consumer Staples
Essential commodities like food, hygiene products, household goods, beverages, etc.
Non-cyclical in nature
Can never go out of demand
Demand is almost always constant
Consumer Discretionary
Non-essential commodities like cars, bikes, mobile phones, jewelry, etc.
Cyclical in nature
Demand peaks when disposable income is high
Demand is almost never constant
Now that we have understood what Consumer Staples and Consumer Discretionary goods are, let’s take a look at the performance of some of the best stocks from both categories.
Source: Google
How Did Real Estate Stocks Perform Vs Bank Stocks?
The real estate market was severely affected by the pandemic. As spending power goes down, people choose to buy goods and services that are essential instead of investing in their dream house. You can consult a Cube Wealth coach or download the Cube Wealth app.
In testing times, people also end up going for traditional investments such as Fixed Deposits, National Savings Certificates, Recurring Deposits, etc. So let us take a look at how the indices for both the real estate and banking sectors have done over the past 6 months.
Source: Google
Source: Google
How Cube Wealth Can Help You Buy The Best Stocks
The pandemic shook up the market in never before seen ways. The ones who adapted or had the experience of adapting to previous crises are slowly recovering and beginning to climb the profitability charts. But the best options can seem very unclear at the moment.
If you invest using Cube Wealth, you will gain access to the advice from equities research experts Purnartha so that you can invest in the best Indian stocks that work for you. The recommendations are based on your goals and appetite for risk.
Purnartha’s investment principles adhere to middle-class values focusing on value-based investing for the long term without short-cuts. Currently, they advise over 7500 clients and have Assets Under Advisory (AUA) of over ₹7200 crores. You can consult a Cube Wealth coach or download the Cube Wealth app.
Watch this video to know how Purnartha and Cube help you buy the best Indian stocks
FAQs
1. How do I determine my risk tolerance when choosing stocks to buy?
Ans. Assess your risk tolerance by considering factors such as your financial goals, time horizon, and comfort level with market fluctuations. This will help you select stocks that align with your risk preferences.
2. What factors should I consider when researching stocks?
Ans. Key factors to research include a company's financial health, industry trends, competitive position, and growth prospects. You should also stay informed about market conditions and economic developments.
3. Is it better to invest in individual stocks or diversified funds like mutual funds or exchange-traded funds (ETFs)?
Ans. The choice between individual stocks and diversified funds depends on your investment goals and preferences. Individual stocks offer more control but also more risk, while diversified funds spread risk across a range of assets.
4. How can I identify suitable stocks for my portfolio?
Ans. Identifying suitable stocks involves setting clear financial goals, conducting thorough research, and ensuring that the stocks you choose align with your investment strategy. Consultation with a financial advisor can also be beneficial.
Conclusion
In conclusion, figuring out what stocks to buy is a process that requires careful consideration and ongoing evaluation. By setting clear goals, doing thorough research, and following a disciplined approach, you can make informed decisions that align with your financial objectives. Remember that stock investing involves risk, so it's important to be well-prepared and stay informed throughout your investment journey. You can consult a Cube Wealth coach or download the Cube Wealth app.
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
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