Stocks to Watch in 2019
The stock market can be extremely complicated to keep track of, with huge shifts in sentiment and abrupt changes being the norm.
When political turmoil like Brexit, US-China tariffs, or US-Iran tensions come about, the situation only gets more unpredictable. In fact, if there are any stock facts that are 100% guaranteed to remain true, it’s that you never know what could happen next.
However, by keeping track of the industries that have a bright future ahead of them, we can more easily make sense of the stock market and what could happen next.
Let’s take a look at some recommendations for stocks and industries to keep an eye on in 2019:
What is the Stock Market Like in 2019?
Unfortunately, the end of 2018 brought with it the return of volatility after a decade-long bull run.
This, combined with the political uncertainty mentioned above has been making a lot of investors hesitant. If the current tensions and competing superpowers develop much further, financial markets will feel the sting.
Despite this, some new blossoming industries such as cryptocurrency and CBD related health products present some interesting possibilities and some evergreen mainstays like communication should certainly be watched too.
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Cannabis Stocks in 2019
With cannabis being legalized across Canada and multiple US states, and CBD products being legalised across the UK and countless other countries, companies involved in the growth, research, production and marketing of cannabis-related products are going to have an explosive year.
Of course, with such a boom comes multiple competitors, many of which will fail, so this is still a risky business.
Our recommendations for the top pot-related stocks to watch in 2019 are Canopy Growth (NYSE: CGC), Aleafia Health (NASDAQOTH: ALEAF), and Charlotte’s Web Holdings (NASDAQOTH: CWBHF).
Canopy Growth has become one of the leading players in this emerging market. In fact, it’s the largest legal cannabis company in the world, and recently made $4 billion in financing via an equity sale. Bruce Linton, the CEO who spurred the company’s explosive growth, has recently stepped down in the hopes of finding a new, more investor-friendly CEO. If he succeeds in finding the right person, the following sell-off could be a perfect on-ramp.
Charlotte’s Web Holdings stock grew 117% last year and is up over 30% this year so far. With hemp production and retail locations both increasing dramatically this year, this company is in for an interesting time.
Aleafia Health is trying to become #1 of the pot world and is making a good try of it, with an already excellent stock turnover ratio. Several recent acquisitions, stakes in other major cannabis medical service providers, and several joint ventures with European Pharma companies make this one to watch in the near future.
Communications Stocks in 2019
Whereas cannabis stocks are important to watch in 2019 because of their huge growth and the fact it’s a completely new industry with a lot of interest, some industries are worth watching this year because, well, they never really stop growing.
The same can be said for tech as a whole, but communication has some potential winners this year:
Vodafone is a major UK network provider with a new CEO from late 2018 who is prioritizing a simplified business and aiming to prepare the company for the future more than ever. Vodafone has also recently purchased assets from Liberty, leading to good cash flow and some chunky dividends. If all goes well with the new CEO, Vodafone’s stocks could have a very bullish year.
BT is also a popular one to watch in 2019 as it’s a safe and stable company that was once a monopoly and is still by far the market leader. It might be a relatively boring investment, but safe and stable is exactly what most investors are looking for this year.
Insurance Stocks in 2019
Insurance is something that every single motorist requires, from private drivers to company fleets. This makes investing in insurance companies a great potential source of profit.
Prudential has seen a lot of growth across the Americas and Asia in the last 12 months and is fairly low risk.
Admiral is an example of a company that’s managed to keep a capital-light business plan without succumbing to undercapitalization. Admiral also pays out the majority of its profits as dividends, including special dividends beyond the regularly scheduled ones, making them a good potential buy-and-hold. The company’s profits grew by 45% in 2017 and a huge chunk of this went to investors. While this growth has now slowed down, Admiral remains a highly productive company with good growth and dividend potential.