I can just hear people screaming “tell me the best best stocks to buy to buy right now!” They want to know, and they want to know in this instant. They not only want to know before anyone else, but they want to buy the stock the minute after you or someone else tells them. My friends, that is not the way to buy stock. You cannot rush out on some hot tip and make money on a couple stocks to buy now.
The people that demand the best stocks to buy right now are an interesting sort. They say they want to buy stock now, but really as soon as they do that, they want to sell. They are driven more so by emotion then common sense, and if they had the chance to measure themselves up against a superior comptition, they would do it instantly, and quickly claim they weren’t as good because of some excuse, or the other people cheated or it’s not fair. If you want the best stocks to buy right now, please just take a deep breath for a second. Roll your eyes up just towards your forehead and soften your attitude. Doing this will put your mind in a alpha state instead of your hyper active beta state. Now perhaps you will listen and realize that everything is okay, there’s no rush, and life will go on. Things will slow down and the best stocks to buy right now can be put off until later. Ask yourself, if they were really that good, wouldn’t they continue to go up for years and years?
For those that want to follow the hot tip to make money, the only way that will work is if other people follow that same tip and rush in just after you do, and you sell it right away. If you are a day trader, you may be able to trade news like that, but I’m telling you the fees will eat you alive. Think about it, $7 to buy a stock $7 to sell a stock (with scottrade one of the more popular brokerage firms). Now if every day you buy and sell a stock, that’s 365*14 or $5110 a year that you’ll be losing on fees alone. You would have to trade very very well to beat that, and most likely, it’s just not going to happen unless you have a very large account. The best stocks to buy right now aren’t necessarily the best stocks to buy in 1 month. There’s always the “flavour of the week” Even if you did, wouldn’t you rather just have the same results without all the fees?
Okay, so now that you’re in the alpha state and not the beta state, you might actually be able to determine the best stocks to buy right now. As always, it depends on your time perspective. If you are willing to be a contrarian, you can buy beaten down stocks that others sell and continue to buy it as it goes lower. Or you can buy neglected stocks that already have been beaten down and are now forgotten. Or if you are a short term investor, you might want to buy breakouts. Or perhaps you want to focus on the fundamentals, and focus on stocks that will do better due to inflation. The point is, you can’t just identify the best stocks to buy right now, without knowing what works for you. Actually, if you react based on emotions, perhaps nothing will work for you unless you have some rules that keep you in check.
The golden rule of investing is that stocks that go up, won’t continue to go up forever, stocks that go down won’t continue to go down forever. That doesn’t mean stocks cant go to zero, or that they won’t over a long period of time continue to go up large amounts, but just understand that change happens. In any given moment a different sector is in a different cycle. Now the cycles say that inflation will occur. You go from stage of deflationary fears to printing money, to printing too much money, to needing to spend that money, to that money flowing until there’s no places for it to flow to, to other countries losing faith in the dollar with all the printing and they sell, to a panic among other owners of the doller. So I still think gold, silver, oil, and shipping stocks are best to own right now. That’s just an opinion, but I think that inflation will continue, and commodities will rise in value. There certainly could be a deflationary panic at some time that could hit hard, but that would only be an opportunity to capitalize on the coming inflation that will be a serious problem. Technically gold silver oil aren’t necessarily best STOCKS to buy right now because they’re commodities. But if I would have to guess, I would say that there’s more value in those commodities than most stocks, and if you need some of the best stocks, you should look for the names that do well in inflationary periods.