John talked about the difference between Growth stocks and Value stocks.Growth stocks are companies like Amazon & Facebook that don’t issue dividends back to stockholders but investment returns are seen in higher stock prices. These type of stocks are currently doing very well in the market.
Value stocks issue dividends which can be an advantage if reinvested to get more stock. They are currently out of favor but John predicts they will be coming back soon and is starting to look at them again to get a good price for his clients.
He also thinks Biotech stocks and overseas companies have potential to grow in the future. Emerging markets stocks did very well last year with 40% but is down 10% this year so investors should be aware of this volatility.
Give John a call if you have any concerns about if you have the right investments.