These blue-chip retirement investments will keep your portfolio steady
It’s hard to imagine that we’ll have another year like 2020
in our lifetimes and for the most part, that would be a positive outcome.
However, the impact of the novel coronavirus over the past several months has
created viable market opportunities. With so many stocks moving to the upside,
many have chased hot sectors like technology. However, this is also an ideal
time to consider retirement investments.
Yes, I realize that the topic isn’t exactly the sexiest that
I can discuss. However, retirement investments are a concept that we must all
think about – and the earlier the better. For one thing, this market segment
focuses on reliable, blue-chip giants that have a long, proven track record.
While it’s tempting to go for the get-rich-quick stocks, some of these hot
names aren’t going to last.
How can I be so sure? Historically, a new industry or
innovation immediately attracts a wide base of competitors. But over time, the
best rise to the top. That’s why you don’t hear about old school web browsers
like Netscape Navigator. Today, the world (wide web) runs on Alphabet’s
(NASDAQ:GOOG, NASDAQ:GOOGL) Google. To avoid the all-or-nothing proposition,
it’s better to have some exposure to reliable retirement investments.
Second, big blue chips tend to be resilient – usually far
more resilient – compared to flavor-of-the-week growth stocks. No, there’s
absolutely nothing wrong with adding growth names to your portfolio.
Ironically, it’s harder to get to retirement if you load up exclusively on
retirement investments. But with uncertainty over the horizon, the smart
approach is to lever yourself to companies that can withstand shocks to the
system.
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