Business & Investment

The best time of the year to invest in stocks

December is a good month to invest in stocks on average. The phenomenon known as Santa Rally has occurred in most years since around 1950. As the calendar year approaches the end, it is usually the time when market share rises.

The reason why it happens is unclear. This is probably due to seasonal favors among investors who are willing to buy around Christmas, a drop in market volume during the holidays, a fund manager that rebalances the portfolio by the end of the year, and Christmas bonuses invested. By doing so, and potentially looking for bargains ahead. Stock prices rise in January (known as the January effect). All of these are probably intertwined.

5 stocks to try to build wealth after 50

Markets around the world are recovering from the coronavirus pandemic … and so many great companies are trading at what looks like a “discount bin” price, so now there are some savvy investors. It may be time to get a potential bargain.

But whether you’re a novice investor or a veteran professional, deciding which stocks to add to your shopping list can be daunting during such an unprecedented era. There is a possibility of becoming.

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So far, December of this year has been very well done. Please touch the following tree.

Investing in stocks

I would like to continue investing in equities to unlock the potential of Santa Rally in the short term and prepare my portfolio for 2022.Recently added higher yields Persimmon In my portfolio.As outlined in a recent article, I also have Boohoo, finnCap, When completely My watchlist also includes other high-yielding, small-sized growth stocks. Small and medium-sized stocks have been struggling for the past few months, so it’s a potentially fertile land to find cheap stocks of considerable value with potential for growth.

Also, since last year, stocks of fast fashion companies have become very cheap, and there are also “pandemic winners” such as: CMC market, A spread betting group that has benefited from the highly volatile markets of 2020. So I personally consider investing in these types of stocks.

Share that catches my eye now

Earlier i saw Up global sourcing (LSE: UPGS) As a growth stock, it is in a good position to offer Growing passive income.. Dividends remain attractive, especially when it comes to year-over-year growth in dividends. More than that, in my opinion, up-global sourcing is a reasonably priced growth (GARP) opportunity.

Why do i think so? First, there is revenue growth. From £ 79m in 2016 to £ 116 in 2020. It’s a decent growth. However, the evaluation is not high. The price-earnings ratio (P / E) is 13, and the price-earnings ratio (PEG) is 0.6. Together, they indicate that the stock may be undervalued.

If supply chain problems continue until next year, things can go wrong as they push up costs for Up Global Sourcing and other similar consumer goods companies. The negative impact on profits can discourage investors from buying stock, which can hurt stock prices.

Since Up Global Sourcing is making acquisitions, there are potential traps associated with it in terms of overpaying for acquisitions.When is the history of listed companies? Management makes a major acquisition It can often destroy value. Micro focus A recent example to remember. So that’s what I’m paying attention to.

Despite these risks, Up Global Sourcing surprises me as the kind of share I want to share in my portfolio. I have more cash and will add it at the beginning of 2022 with a little more research.

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  • Annual revenue since 2016 31% increase
  • One of its senior directors in March 2020 Loaded 25,000 shares – Positions worth £ 90,259
  • Cash flow from operating activities has increased by 47%. (The operating profit margin is also rising every year!)

Simply put, we believe it’s a great stupid growth choice.

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Andy Ross owns shares in CMC Markets and Persimmon. The Motley Fool UK recommends the Micro Focus and boohoo groups. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, given the various insights, A better investor than us.

The best time of the year to invest in stocks The best time of the year to invest in stocks

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