Top 5 Stocks to Buy for 2021 Returns [and the 10 Stocks to Avoid]

TL;DR

Despite the chaos of 2020, investing has been favorable, and the Let's Talk Money Channel recommends five high-upside stocks for 2021.

Transcript

hey bowtie nation joseph hogue here with the let's talk money channel and nation in all the chaos and the crash of 2020 it has actually been a surprisingly good year to invest i revealed five stocks back in april five stocks to buy with the most potential this year and these picks have surged in that time we're up between 30 and 70 just in the last... Read More

Key Insights

• 🙃 Energy, healthcare, financials, communication services, and consumer discretionary sectors are expected to show significant upside potential for investments in 2021.
• 🧑‍⚕️ Healthcare has underperformed in 2020 due to the focus on virus patients, but demographic forces and increased health spending make it a promising long-term investment.
• 🥺 The financial sector has taken earnings losses, but a potential economic recovery and increase in interest rates could lead to significant earnings and dividend boosts.
• 🛟 Evaluating a company's financial statements, debt levels, acquisitions, cash reserves, and market trends is crucial when considering investments.
• ❓ It is important to diversify investments and not solely focus on one sector, such as energy.

Questions & Answers

Q: What are the sectors with the most upside potential for investments in 2021?

According to analyst expectations, sectors such as energy, healthcare, financials, communication services, and consumer discretionary show significant upside potential for investments in 2021.

Q: Why is healthcare a promising sector despite the focus on health this year?

Although healthcare has underperformed in 2020 due to focus on virus patients, hospitals and doctors are expected to pivot in 2021, leading to a rebound in earnings and making healthcare a promising long-term investment due to demographic forces and increased health spending.

Q: What are the catalysts for potential high returns in the financial sector?

The financial sector has taken billions of dollars in earnings losses and maintained cash reserves due to economic uncertainty. If there is an economic recovery in 2021, banks can reverse these losses, increase earnings, and potentially raise dividends. Additionally, a predicted increase in interest rates can enhance earnings for banks and insurance companies.

Q: What criteria should investors consider when evaluating stocks?

Investors should look at a company's financial statements to assess its debt levels, engagement in acquisitions, cash reserves, earnings growth, and market trends. It is important to consider both the risks and upside potential of a stock before making an investment decision.

Summary & Key Takeaways

• The Let's Talk Money Channel recommends five additional stocks with high upside potential for investors in 2021, in addition to the previously highlighted dividend stocks.

• Sectors with significant upside potential include energy, healthcare, financials, communication services, and consumer discretionary.

• Analysts expect a rebound in economic growth next year, making it a favorable time to invest in these sectors.