The economy is growing at a really slow pace.  And I’m not just talking about the US either.  Europe is super slow and is probably in a double dip recession due to the debt crisis.  I don’t see either of these situations improving significantly for a while.  Growth in Asia, specifically in China, is slowing as well.  This makes it really hard to get a decent return on your money these days.  Regardless, there are still good stocks that you can buy in this type of climate.

Innovative Technology Stocks

I really like to look for mega trends when it comes to stock investing.  Okay, I’ll do the standard investment strategy, i.e. invest in dividend stocks and bonds when times are bad.  But I will work extra hard to find those great stocks that have a bright future.  The best place to find that, in my view, is in technology stocks.

That is because there are companies out there that are innovating and coming up with solutions to the world’s current and future problems.  It takes a little bit of extra work to find good stocks in this type of field.  You also need to get yourself educated on the scientific and technological background to find the good ones, but they can be well worth it.

Alternative Energy Investments

I particularly like companies that are innovating tomorrow’s energy solutions.  Remember, we cannot go on using fossil fuels like we have been.  The days of cheap oil are gone.  Now, the companies coming up with cleaner and cheaper energy will be the stock winnders of tomorrow.

I really like stocks that are engaged in business that is currently selling.  I don’t like to buy pre-market ready companies.  In other words, I want to make sure that their company’s product or service is out of the research and development phase and being sold to a viable and growing market.  That means if the fuel is still sitting in a lab and no one is paying money for it, then maybe look elsewhere.

Biotech Stocks

I also like biotech stocks.  Again, I want to make sure that they are out of the clinical trial phase and things are looking good for FDA approval.  But if it’s a groundbreaking drug that helps a lot of people, then it is going to make a lot of money.

    1 Response to "Stock Investing in a Slow Growth Environment"

    • David

      Hi FPT guy, interesting points on stock investing. I think you would agree that solid fundamentals are so important.

      People underestimate the basics sometimes. When people invest in stocks that have no solid fundamentals they really are gambling!

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