Dear Readers,
Has the stock market gotten too predictable for you? Indexes have hovered near record highs for months, and it’s been the usual suspects driving moves: stimulus updates, economic-growth prospects, regulation and tax concerns, and maybe a dash of company earnings here and there.
Those looking for a little more excitement would be well-advised to look towards cryptocurrencies, which are constantly rewriting the record book amid unprecedented volatility.
Bitcoin in particular has been on a wild ride, with prices fluctuating by up to $5,000 per unit on any given day. New record highs are followed the next day by record drops. It’s a chaotic scene not for the faint of heart.
If you aren’t yet a subscriber to Insider Investing, you can sign up here.
We here at Insider have been sorting through the madness in an attempt to nail down a semblance of clarity. We spoke to the CIO of a $500 million crypto asset manager, who broke down five ways of valuing bitcoin and deciding whether to own it. You’ll also want to check out our discussion with a crypto CEO, who explained why bitcoin could double in 2021.
For more, see below Insider’s best Investing stories of the week, which include a wide array of additional recommendations, strategies, and tips for navigating uncertainty.
Thanks for reading!
— Joe
6 stocks to own for the next 5-10 years, according to 96th-percentile investor
Over the past five years, Aram Green’s Select Strategy fund has outperformed 96% of its competitors. He shared with Insider 6 stocks that he identified as having strong secular growth prospects over the next decade, some of which have cyclical tailwinds behind them as the economy recovers.
Read the full story here:
A growth-fund manager who’s beaten 96% of his peers over the past 5 years shares 6 stocks he sees ‘dominating their space’ for the next 5 to 10 years – including 2 he thinks could grow 100%
10 Wall Street experts share their 2021 stock forecasts
The majority of Wall Street’s biggest firms remain bullish after a wild year that saw stocks plunge into the fastest bear market in March only to rebound to record highs and end 2020 with a 16% gain.
Despite their optimism, many strategists caution about risk factors that could derail the economic recovery and reopening, which is expected to support the next leg of the bull market.
We’ve compiled their best recommendations for how to maximize your returns in a year that is expected to carry forward much of the volatility and uncertainties of 2020.
Read the full story here:
10 top Wall Street experts unveil their stock-market forecasts for 2021 – and tell you where to put your money
A warning from investing legend Jeremy Grantham
On a recent podcast appearance, investing legend Jeremy Grantham – who famously predicted the last two bubbles – said that SPACs are “encouraging the most obscene levels of speculation” and “should be illegal.” Here are his complete thoughts on risk assets running wild.
Read the full story here:
Jeremy Grantham predicted the past 2 financial meltdowns. Now he says these 3 signals are foreshadowing a crash in another bubble being created by stocks and SPACs.
JOIN OUR LIVE EVENT: How to invest in real estate
Join Insider on Wednesday, January 20 at 1 p.m. ET for a panel on how to invest in real estate in the coming year, featuring R. Donahue Peebles, founder, chairman and CEO of the Peebles Corporation, and Daryl Fairweather, Redfin’s chief economist.
Stock pick central
Seeking experts who are willing to name names? Look no further:
- GOLDMAN SACHS: Buy these 50 under-owned stocks that will roar higher as growth and inflation lift off in 2021
- Buy these 30 stocks that handily beat the market in 2020 and are poised for the best global returns in 2021, RBC says
- BANK OF AMERICA: Buy these 10 Dow stocks to take advantage of rich dividends and a long-term strategy primed for a comeback in 2021
- Morgan Stanley says to buy these 26 economically sensitive stocks poised to outperform as oil prices spike 10% by year-end
- Fundstrat’s Tom Lee says to buy these 10 transportation stocks that were the hardest hit by the pandemic and are most leveraged for the economy’s reopening in 2021
- Deutsche Bank says buy these 14 beaten-down financial stocks poised for a bullish recovery from 2020’s ‘savage sell-off’ – including one that could rally 30%
- Goldman Sachs says to buy these 29 stocks poised to deliver the strongest sales growth through year-end
- BANK OF AMERICA: Buy these 8 US stocks poised to soar in the first quarter of 2021- and avoid these 2 at all costs
- Morgan Stanley says these 8 stocks will build on a strong 2020 finish and post strong returns in 2021 as the economy recovers – with one that could gain up to 32%
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