The stock market continues to climb well into 2021. We’re almost a year away from the March stock market crash back in 2020. This comes on the back of improving economic sentiment for the year, including a vaccination rollout, rising energy demand, and strong earnings.
But what does that mean for your personal investments? While there has been a lot of upward trends, there have also been some risky stocks out there that investors seem to fall behind. I would not go this way. In fact, there is a far easier way that investors can take advantage of the market and see $1 million in their portfolios.
It’s easy: Think long term
When the market starts to rally, investors may think they missed the boat. Instead, think about all the returns you’ll make before the next market crash comes along. Then you can always buy up more of a solid stock.
Here’s the key, and it’s easy: when you invest, it should be for the long term. From there, there are ways you can make strong returns, even in the next few years. You simply have to see emerging trends and find companies that offer value. Now, again, you have to be careful. There are a lot of hot stocks that are due for a pullback. These wouldn’t be considered value stocks. Instead, find those stocks that will do really well this year, but keep pumping out cash decades down the road.
Gas isn’t gassed
Oil prices continue to be in demand. There is a rally that investors should really hop on if they hope to take strong advantage in 2021. But beyond this year, these energy stocks are set up for huge success. Even with the emerging green energy initiatives.
Here’s the thing: while the world wants to go green, oil and gas will continue to be in demand for years to come. North America is set up for success, as it produces natural gas and oil on the cheap. These cheap prices mean it will be demanded around the world. So, investing in Canadian oil and gas companies, and those related, is a great step to take today.
Then you’ll want companies that could potentially shift to green energy down the line. It’s already happening, with coal plants shifting to natural gas plants. We’ve also seen some oil and gas players start investing in hydro, for example. It’s these companies with solid financials that will be around, even when oil and gas goes the way of the dodo bird.
The best choice is the easiest
If you want the best choice out there, it’s the easiest one to make when it comes to value stocks: Suncor Energy (TSX:SU)(NYSE:SU). Suncor stock has been hammered over the last three years, and even more so during the pandemic. Production slowed from the oil and gas glut, and then came to a crashing halt. The company, meanwhile, took on debt after investing in numerous oil sands projects.
But now, Suncor stock is on the rebound. It’s the largest fully integrated oil and gas company in Canada. The company is now underway getting production back to normal. Once that happens, it can finally open its other projects it has been working on for the last few years. These assets will be worth a ton as the price of oil increases. And once pipelines come into play, shipping Suncor’s product across the continent, shares should continue to rise.
Shares are still down 46% from 2018 highs, which puts it at a discount of 46%! Shares should double in the next few years, and, in fact, that could happen this year alone. If that happens, you could be a millionaire before the end of this decade!
Suncor stock is a value stock for not just its long-term contracts, but for it’s long-term growth. It has investments in hydro for the future, but the assets to deliver oil and gas now. If you’re an investor looking for value to make it to $1 million, then this is the stock you’ll want to watch.
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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 has no position in any of the stocks mentioned.