Here we are, folks, with just one more trading day before we officially close the books on 2021. This was another year filled with many highs and lows. For example…
The broader indices climbed to new records highs, and the Dow broke 36,000 for the first time ever. Companies reported record earnings. There was a record number of stock buybacks. The Wall Street Journal noted that in the third quarter, stock buybacks rose to $234.5 billion, an all-time record.
However, there were some lows, including the violent selloff in Chinese stocks in the early part of the year. That was due in large part to the “blowup” of Archegos Capital Management family office, which held inventory for several brokerage firms. As a result, many Chinese stocks were hit with relentless selling pressure. To add insult to injury, a coordinated slander campaign against Chinese stocks by the financial media ensued, which triggered even more selling.
Investors also had to contend with new COVID-19 variants, port bottlenecks, supply chain glitches, the semiconductor chip shortage, a ban on drilling on federal land and the Federal Reserve pumping too much stimulus into the economy. Put it all together, and it led to one of the biggest stories of the year: inflation spinning out of control.
The inflation story will continue into 2022, but as I discussed in last Tuesday’s Market360 article, inflation is actually good for the stock market. Residential real estate and stocks remain the best way to protect an investor from inflation, so fundamentally superior growth stocks and dividend stocks should remain an oasis for investors. In fact, millions of new investors have opened brokerage accounts; those folks are increasingly turning to stocks to protect themselves against the highest inflation in 39 years (since 1982).
Given this, I look for the stock market to trek higher in the New Year, aided by the “January effect” in the beginning of the year. This is when investors pour new pension funding into the market as 2022, which, in turn, can dropkick and drive stocks higher.
With that in mind, here are 10 AA-rated stocks (meaning they earn an A-rating in Portfolio Grader and Dividend Grader) that could be go-to names for investors in the New Year.
For more stocks that offer a one-two punch of income and growth, consider giving my Growth Investor newsletter a look. It features two Buy Lists: my High-Growth Investments and Elite Dividend Payers. So, you have plenty of stocks to choose from. I also include a Top Stocks list, which is a select list of stocks from my Buy Lists that have not only Quantitative grades from persistent institutional buying pressure, but also stunning fundamentals that typically result in big earnings surprises. (Find the full details here.)
I hope you have a happy and healthy New Year. Here’s to an exciting and prosperous 2022!
P.S. There is a great divide opening up in America – and investing in my Growth Investor stocks will help get you on the right side of it. On one side is a new aristocracy that’s amassing more wealth more quickly than any other group in American history. For people like me, the one percent, life has never been better, more prosperous.
On the other side, the opposite is happening. Wealth is flowing out of the pockets of ordinary Americans at an unprecedented rate.
What’s happening is only going to gather in strength over the coming decades. It certainly won’t weaken.
Few Americans even know that any of this is going on. I’ve never seen anyone from my side of the chasm step forward to explain any of these things.
It’s why I put together this video. In it, I’ll lay out exactly what is happening, including several key steps every American should take right now.
It doesn’t matter if you have $500 in savings or $5 million. You can benefit from the information in this video.
It’s free to watch, and by doing so, I know you’ll be ahead of everyone else struggling to understand what is really going on.
P.P.S. While the stock market will be open on Friday, December 31, the InvestorPlace offices, including our customer service department, will be closed. We will resume our regular Market360 schedule next Tuesday.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
American Financial Group Inc. (AFG), Quest Diagnostics Inc. (DGX), Extra Space Storage Inc. (EXR), Hartford Financial Services Group, Inc. (HIG), Kroger Co. (KR)