3 Stocks That Can Actually Make You Rich

By  |  | 

This article was originally published on this site

The 2016 solid performance of the U.S. stocks has continued into 2017, that too with huge optimism. While the rally has been broad-based, growth stocks are easily leading the way to start the year. This is especially true as the ultra-popular growth fund (QQQFree Report) climbed 3.5% in the first few trading sessions compared with gains of 0.4% for the value fund IWD and 1.3% for the core fund (SPYFree Report).

3 stocks that can actually make you rich

In fact, most of the growth stocks and ETFs are hitting all-time highs this year. This outperformance is likely to continue for the rest of the year (read: Large-Cap Growth ETFs Warming Up This Winter).
Reasons

Breaking News : This Is Your Once In A Lifetime Opportunity To Grab Gains Of 634%, 696%, 2,530% … And Even More. 3 Explosive Stocks to Own Right Now for 1,000% Gains. Grab Theme Here

The U.S. economy is clearly on solid footing thanks to an impressive labor market, rising wages, slowly rising inflation and increasing consumer spending. Americans have an optimistic view about the economy with confidence hitting the highest level since 2001. Additionally, the combination of other factors like return to the earnings growth era, the jump in oil price, Trump’s pro-growth policies and the rise in interest rates have added to the strength.

In particular, Trump’s promise to accelerate economic growth, increase inflation, spend big on infrastructure, reduce regulations, cut taxes and create more jobs in the country have instilled strong confidence in the market. These moves will likely flood U.S. companies with excess cash and earnings growth, resulting in a stock market rally in the months ahead.

On the other hand, the historic OPEC oil output cut deal could end the two-year crude-oil rout and stabilize the oil market, infusing fresh optimism into the energy sector. If these aren’t enough, earnings for the S&P 500 are expected to return to double-digit growth of 12.1% in 2017. This is much higher than the expected earnings decline of 2.1% in 2016 and 1% decline recorded in 2015 (read: 5 ETF Investment Ideas for 2017).

In such a scenario, when broader market sentiments have a predetermined positive direction, there is hardly any strategy as gainful as growth investing. This is basically a momentum play and a great strategy in a trending market (a market characterized by a prolonged uptrend). Growth stocks refer to those high quality stocks that are likely to witness revenue and earnings increasing at a faster rate than the industry average. These stocks harness their momentum in earnings to create a positive bias in the market, resulting in rocketing share prices.

Given this, it seems that growth investing will continue to lure investors’ throughout the year. We have presented five ETFs & stocks that that could be excellent plays to ride out the Trump euphoria and strengthening domestic fundamentals.

Breaking News : This Is Your Once In A Lifetime Opportunity To Grab Gains Of 634%, 696%, 2,530% … And Even More. 3 Explosive Stocks to Own Right Now for 1,000% Gains. Grab Theme Here