This year hasn’t been an easy one for investors thus far. After a huge drop around the new year, most stocks have managed to climb back up to around where they were before the dip. That being said, not every stock has been so lucky to remain at those levels.
After the market dip, investors of 2019 are being much more cautious. In general, most seem to be looking towards either new investment strategies or the old-school ones of buying bank stocks, ETFs, and the like.
Not that there’s anything wrong with that way of investing, but there is also some hope going forward. After a period of underinvestment, investors will likely see that there are a number of opportunities out there, where stocks have been on sale for quite some time.
That being said, let’s look at the rest of the year and what I believe are three things that should happen by the end of 2019.
Energy stocks bounce back
The current downward spiral in share price is based on factors that are out of the oil and gas industry’s control and temporary. If investors are considering buying up shares in an energy company, they should look at the company’s long-term history and future outlook to see whether they deserve their dollars.
Furthermore, when looking at an analyst’s net asset value (NAV) of each of these stocks, the downturn is in fact taken into account of the NAV share price. So, when you look at a stock like TC Energy, trading at around $66.50 per share as of writing, with analysts believing the stock worth $71 per share, investors should see that the stock is currently at a discount.
The main drivers of the glut are likely to end this year, and when those factors are over it shouldn’t take long for investors to pounce on stocks like TC Energy. That makes now a great time to buy up these stocks at a superior discount.
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I don’t think cannabis is going to go anywhere near its sky-high prices of the summer of 2018. That growth was due to the excitement surrounding the potential to make quick cash rather than the companies. However, it seems that the sell-off has been much the same, with shareholders dropping shares after cannabis companies continue to announce profits are a long way off.
Now that the hype and promises are out of the way, a few producers have come out on top. This is where investors should be focusing their attentions and again looking for opportunities to buy up stocks on the cheap.
A great example is Aurora Cannabis, the most international pot stock currently setting itself up to be the largest producer in the world for the lowest cost. Of course, it might be a wait for investors to see some serious money come in from this stock, but honestly, that’s the same for most pot producers. This new industry is just that: new. So, if you’re serious about getting rich off cannabis, there are opportunities. You’ll just have to be patient.
A phrase popping up more and more, “debt fatigue” is when investors become overwhelmed by the amount of money they’re left owing. Consumers, corporations, even governments aren’t immune to this feeling of hopelessness, causing many to not only stop taking on loans, but to take it a step further and stop paying them off. Some even may choose to declare bankruptcy.
If this sounds like you, take some advice: don’t panic! Go to your bank and look at some options to get hold of your debt. There are always options. In the meantime, instead of buying up the stocks I’ve mentioned here, it could perhaps be better to take the first line of defence and buy those bank stocks or ETFs I mentioned earlier. A great option right now is Royal Bank of Canada, which is Canada’s largest bank with its recent expansion into the United States and move into wealth and commercial management providing investors with years of future gains.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Amy Legate-Wolfe owns shares of Aurora Cannabis.