Kiplinger's Retirement Report: Stocks That Could Take Off in the New Year

 By SIMON CONSTABLE

American stocks have performed well over the past three years, with annualized returns greatly exceeding the long-term average of 10.5%. That is true of both the S&P 500 index and the tech-heavy Nasdaq. The big question now is: What are the best bets in 2026?

"At the end of every year, I get the question of whether investors should buy stocks that have dropped or should I stick with my winners," says Sam Stovall, chief investment strategist at research company CFRA. "It depends on what happened the prior year."

Broadly speaking, if the market was loss-making in the previous year, then buy low. If the market is up, then keep those stocks that performed well, Stovall says. He bases this on deep analysis of how stocks have performed for decades. READ MORE HERE.

Julian Herzog (Website), CC BY 4.0, via Wikimedia Commons

Kiplinger's Retirement Report: Yes, artificial intelligence stocks are booming

By SIMON CONSTABLEch in 

Using new tech in the workplace and at home is nothing new. But the November 2022 introduction of ChatGPT, a generative artificial intelligence service, made the use of AI the norm, and at breakneck speed.

Since the end of 2022, anyone who purchased the so-called Magnificent Seven (Mag 7) stocks, all of which are embracing AI, should have profited handsomely. The stocks are Nvidia (NVDA), Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT) and Tesla (TSLA). Collectively, these stocks were worth about $20 trillion recently, up threefold from $7 trillion less than three years ago. But stock market professionals are divided on their prospects. 

Some are bullish, others see a bubble. Brian Glenn, chief investment officer at private wealth adviser Premier Path Wealth Partners, says the surge in AI-related stocks is not yet in a bubble. "If everyone is talking about a bubble, it probably isn’t," he says. He has a point. "No one rings a bell at the top of the market," says Wall Street veteran Art Cashin. READ MORE HERE.

Kurt Kaiser, CC0, via Wikimedia Commons

Kiplinger's Retirement Report: What Made Warren Buffett's Career So Remarkable

By SIMON CONSTABLE

Warren Buffett, 95, the so-called Oracle of Omaha, is set to step down by year-end as CEO of investment company Berkshire Hathaway. Over 60 years, he and his deputy, Charlie Munger, who died in 2023 at the age of 99, produced outstanding investment returns that made other investors’ returns pale in comparison.

Look at the numbers: From 1965, the year Buffett took over a struggling textile company, through the end of 2024, Berkshire’s shares rose 5,502,284%. That’s an annual compounded return of 19.9%. Over the same six decades, the S&P 500 index rose just 39,054% or 10.4% annually.

“Buffett is the most legendary investor in the history of investing,” says Adam Patti, CEO of exchange-traded fund company VistaShares. “And he has changed the way people invest.” READ MORE HERE.