"However, it's been true that investors who have continued to hold overweight exposure to growth stocks have continued to perform better than those who have been sitting in fixed income assets, cash or other lower-beta stocks. I'm all in favor of diversification and picking and choosing spots in those sectors. However, I'm also aware that capital continues to chase returns."
"Alphabet (GOOG) This pick, to me, is a no-brainer. Google parent Alphabet ( NASDAQ:GOOG) has become much more than a search engine giant. I mean, that's still the company's core cash flow growth engine, and can't be ignored. However, the company's robust cloud business and its dominance in the world of digital advertising and AI innovation can't be ignored. Quarter after quarter of massive earnings beats have continued, with the company's most recent Q4 earnings one again shattering expectations."
The stock market has produced a strong run, with investors across ages and risk profiles benefiting. Investors holding overweight exposure to growth stocks have outperformed those in fixed income, cash, or lower-beta stocks. Diversification and selective sector choices remain prudent, but capital continues to chase returns and momentum can persist longer than many expect. Contrarian positions can quickly harm long-term investors because the market can stay irrational longer than many can stay solvent. Certain high-performing stocks are likely to continue outperforming in 2026. Alphabet (GOOG) stands out with 14% top-line growth, a 30% cloud revenue increase, digital-advertising dominance, and AI-driven search enhancements.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]