The Best Stock Picks Of 2019

If you are looking for the best stock picks for 2019, you should read this article. There has never been a better time than now to invest in the stock market. This is because the economy is booming, employers are creating new jobs and workers have a higher disposable income. It follows that many public companies are doing well and this is why stock prices are rising. If you want to invest in the stock market in 2019, you should consider the options below.

Buy Penny Stocks

Penny stocks are stocks with relatively low prices. You can buy these stocks for less than five dollars and this makes them very attractive to investors like you. If you do not have much capital to invest, penny stocks are just right for you. This is because you can buy a large number of these stocks without spending too much capital. Another excellent reason to buy penny stocks is that the prices are likely to rise. This is because the companies behind many penny stocks are relatively new companies. It follows that if these firms are doing well, (and they will) the prices of these stocks will rise. When this happens, you make good money from capital appreciation.

Buy Blue Chip Stocks

Another smart way to invest in the stock market is to buy blue-chip stocks. As the name implies, blue chip stocks are the stocks of companies that are old and established in the business world. The stocks of these firms do not come cheap. However, when you buy these stocks, you will get excellent value for money. This is because blue-chip stocks experience a slow but steady rise in price. In addition, most of the companies behind blue-chip stock pay excellent dividends. You can hold on to the stocks for the long term and enjoy regular dividend payouts. You can even invest the cash you get from the dividends in more blue-chip stocks. This way, you increase your holdings and make more money in the long term.

Invest in Rights Issue

Sometimes, you may not get the stocks you want to buy in the secondary market. This is particularly true of high cap stocks and blue-chip stocks. However, you can take advantage of rights issue and buy these rather elusive stocks. A rights issue is an offering that targets already existing shareholders. You have stocks in a public company already. Now, this company may offer you three more stocks for every five stocks you already own or one additional stock or every four. Take advantage of this opportunity and increase your holdings.

Invest in IPOs

An IPO is an initial public offer. This simply means that a company is selling shares to the public for the very first time. Anytime a company offers an IPO, it is an opportunity to make money. This is because the prices of the stocks are usually low at this time. In addition, you can buy these stocks directly from a commercial bank or the registrars offering the stocks. This saves you the commission you would have paid a stockbroker.

Final Word

The best stock picks of 2019 are the ones discussed above. Talk to an experienced and competent stockbroker and you will get the best deals in the stock market in 2019.