London, UK, 2nd Oct 2021, ZEXPRWIRE – If you’re looking for a safe investment in the stock market, there are some stocks that can provide long-term growth. One broker from Ashford Capital Investments says these companies have strong potential and he says they can be considered by investors who want solid investments with good returns over time. The broker says although the stock market is an unpredictable place, it is one of the best places where you can invest your money.
To have access to stock markets, an individual can choose to be a part of it by investing his/her savings in the form of shares and companies. The value of such companies usually goes up as they keep on increasing their revenue which leads to higher dividends as well.
Ashford Capital Investment’s broker discussed a few stocks that he says are expected to do well in 2021 and beyond. These include Wells Fargo & Company (NYSE: WFC ), Walgreens Boots Alliance Inc (NASDAQ: WBA ), Home Depot, Inc. (NYSE: HD ), and Ford Motor Company (F).
Ashford Capital Investment’s broker says WFC is a good stock to consider since there are several factors that make it resilient. Aside from being the largest bank in the US by market capitalization, its recent acquisition of General Electric’s Capital Finance Business has not affected its performance since its lending standards remain intact. The company also has a low loan-to-deposit ratio, making it resilient. The broker also says that WFC is a good investment because its dividends are safe and continue to grow despite tax regulations.
The company has continued to perform well in spite of the changes happening in retail. Ashford Capital Investment’s broker said this is partly because people still go to their local pharmacies and drugstores and it is not affected by e-commerce. The company has also performed well in spite of the delay in the launch of generic drugs, with Walgreens maintaining its strong performance even when Rite Aid stores were struggling.
When Wells Fargo acquired WFC, it gave shareholders a gift in the form of warrants to buy HD stock. According to the broker said these are now worth around $3.5 billion and this is why he says that HD is resilient despite its high valuation, which makes it more exposed to interest rate hikes. He added that interest rates are expected to rise but this will not affect the home improvement retailer too much since it has an average customer debt of around $40,000.
The company’s stock is relatively cheap and this too makes it a good investment. Ashford Capital Investment’s broker says the automotive industry is also expected to perform well in 2021 and 2022 as gas prices are expected to stay low and since there is a strong demand for trucks and SUVs.
He also stated that F’s stock has performed well in the past few years, outperforming other companies like General Motors Company (NYSE: GM ), Toyota Motor Corporation (ADR) (NYSE: TM ), and Honda Motor Co Ltd (ADR) (NYSE: HMC ).
When it comes to securities, they can either be part of the primary market or secondary market. The broker says that regardless of the type of market that you choose, it is important that you understand fully how the market works.
In the primary market, companies spend a huge amount of money to develop their products and services without receiving any income from investors. In order for them to get funding, they need to sell securities that are often in sale on equity or debt instruments.
If the company’s stocks or bonds have a good market value, they might sell future securities in the form of private equity to angel investors. When these investments are made, they will often go to public offerings as soon as they receive revenue from the sale.
In the secondary market, it is possible for individual investors to buy and sell securities anytime regardless of how much the company earned. When people buy and sell securities in the secondary market, it is usually done through a registered broker-dealer who acts as an intermediary who manages the buying and selling of equity shares.
The broker says that those who choose to trade on secondary markets should always do so with caution as they are more likely to be exposed to fraudulent activity since the volume of trading is on the increase.
According to Ashford Capital Investment’s broker, investors should always remember that it is possible to lose money when they are trading in secondary markets. This is why he says that many people prefer trading through primary markets where their transactions are less likely to be fraudulent.
The broker says investors have a number of stocks to choose from if they want good, safe investments. He adds that they should still conduct thorough research and only invest in the stock market after careful consideration since there is no such thing as a risk-free investment.
However, he also says that investors should not ignore the stock market and it is important to be cautious and always remember to diversify and invest for the long term.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.