There are times when just buying a broad basket of stocks is enough for many investors. But there are times, like now, when investors need to be a bit picky. As many observers have noted the overall market is looking a bit highly priced.
Does that mean you should avoid the market? Probably not. Stocks have a good long term track record of beating inflation. They have done far better than cash and have outperformed bonds over periods of many decades.
Instead, investors should look carefully at which stocks to buy, says Adam Johnson, founder and author of the Bullseye Brief newsletter. It's worth knowing his depth of knowledge is very impressive and based on practical investing experience, which is why it's really worth listening to what he says.
He explains his thoughts on what and how you should invest in this video.