Investing in stocks can be challenging, especially without a proven strategy. With that in mind, it’s essential to focus on the best stocks to buy or watch. As of now, prime candidates include Microsoft (MSFT), Taiwan Semiconductor (TSM), Lennar (LEN), On Holding (ONON), and Shockwave Medical (SWAV).
Last year, concerns about inflation and Federal Reserve tightening rates kept investors on edge. However, the market surprised everyone with outstanding performance in 2023. Looking ahead to 2024, more moderate gains are expected, with growing confidence that the Fed will achieve a soft landing. Despite this optimism, the Russian invasion of Ukraine and the Israel-Hamas conflict continue to cast shadows over the market, adding uncertainty.
When it comes to selecting stocks, it’s crucial to follow a proven system like CAN SLIM. Look for companies with strong quarterly and annual earnings growth, innovative products, and services, as well as solid revenue growth. Additionally, pay attention to supply and demand dynamics, focus on leading stocks in top industry groups, and seek stocks with strong institutional support.
Timing is key when buying stocks. Wait for a stock to form a base and then buy once it reaches a buy point, ideally in heavy volume. Keep an eye on market trends and be prepared to adjust your investments accordingly. Remember that most stocks follow the market direction, so invest when the market is in an uptrend and move to cash during a correction.
As for specific stocks, Microsoft, Taiwan Semiconductor, Lennar, ONON, and Shockwave Medical all show impressive relative strength. Microsoft, in particular, has seen significant growth in earnings and revenue, making it a solid choice for investors. Taiwan Semiconductor is also in a buy zone, showing signs of potential growth.
Overall, staying informed and following a disciplined approach to investing is crucial in navigating the stock market. Keep a close watch on market trends, be prepared to adjust your portfolio as needed, and focus on high-quality stocks with strong growth potential. By following these guidelines, you can increase your chances of success in the stock market.