Got $2,000? Buy These 2 Growth Stocks So You Can Retire Rich

Forget trying to pick which direction the stock market will head in next week. Instead, look to add shares of either of these growth stocks, so you can retire rich.

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If 2020 has taught investors one thing, it’s that you cannot predict short-term market movements. We’ve witnessed incredible levels of volatility this year so far, and the second half of the year could likely see the same. 

On the surface, the year-to-date performance doesn’t raise any alarm bells. The S&P/TSX Composite Index is down by about 10%. In comparison to last year, 2020 may seem as if it’s been a terrible year. But it’s worth pointing out, at several times this year, it very well looked like the year would end far worse off than a 10% decline. With that said, it still is very possible that the market will see a decline of more than 10% by the end of the year. 

The market witnessed a significant drop of more than 35% in just over one month. It has since rebounded by gaining back that 35% since the incredible run began at the end of March. 

Is now the time for investors to take profits?

Many investors are now questioning if they should be taking profits after seeing such a strong run-up in the market. Add in the fact that the U.S. is starting to see an increase in daily COVID-19 cases in some states, and investors may be worried we’re facing a steep market drop in the near future.

For short-term traders, deciding whether to take profits or not may be a fair question. But for Foolish investors, our focus is on the long term. Rather than questioning whether or not to take profits today, Foolish investors should instead focus on which companies they’ll be adding to their portfolio next. 

I’ll cover two growth stocks in the Canadian market today. Each has had a strong year so far and plenty of long-term growth still ahead. I don’t own either company yet, but with a potential pullback in the market looming, I’ll be looking for a dip in price, so I can add at least one of these companies to my portfolio. 

Kinaxis

Perhaps not a household name in Canada today, it may just be after the run it has seen this year. Kinaxis (TSX:KXS) has witnessed an incredible gain of 85% year to date. With half a year still left in 2020, it’s very possible the $5 billion company will see its share price double this year. 

Many companies have had its supply-chain operations significantly disrupted this year from the effects of the COVID-19 pandemic. Consumer purchasing behaviour was drastically altered, as employment numbers spiked and many people were forced to spend more time than ever in their homes. 

Kinaxis specializes in providing cloud-based software to supply-chain operations. After seeing the damage that the COVID-19 virus has caused this year to supply-chain divisions, the tech company will likely continue to see revenue growth at a high level. 

Maxar Technologies

Maxar Technologies (TSX:MAXR)(NYSE:MAXR) has not seen its stock price double this year just yet, but there is still plenty to be bullish about for this company in the long term. 

The $1.5 billion company is in the business of providing earth intelligence and space infrastructure solutions to countries across the globe. The earth intelligence division produces earth imagery and radar data solutions. The space infrastructure division focuses on building space and ground-based equipment. 

The space tech industry is valued at roughly $500 billion today and could reach a valuation of over $1 trillion by 2030. The industry is still largely in its infancy stage, which means buying shares of Maxar today means you will likely need to hold this stock for the long term to benefit from market-beating returns. 

Foolish takeaway

How the stock market will fare for the rest of the year is anyone’s guess at this point. It’s likely that the high levels of volatility will continue in the short term, especially as COVID-19 cases seem to be spiking back up in some areas of the world. 

For the long-term Foolish investors that can handle the short-term volatility, these are two companies that should be considered being added to an investor’s watch list today.

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 Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends KINAXIS INC and MAXAR TECHNOLOGIES LTD.

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