When investors are fleeing to new and emerging markets, do you find yourself asking, "Why should I invest in U.S. Stocks?" After all, emerging markets for the last four years have been a great source of growth, mostly consisting of Israel, Poland, the Czech Republic, Chile, and Korea. Now, they are beginning to recede, which is making investors search for new opportunities. Investors are leery of the U.S. markets due to slow economic recovery, rising interest rates, stagnant job growth, and new modernized policies, like Obamacare. Unfortunately, everyone shying away will soon be asking the question, "Why did I think it would never get better?" when you should have said, "Why didn't I stick with my 20 year plan?"
Currently healthcare mergers are a major topic of discussion when it comes to Obamacare. Some hospitals even after 20 years of business are finding themselves struggling to keep up with increased healthcare costs for both services and labor causing an increased amount of mergers to occur. In the current markets Obamacare has been causing healthy growth for privatized healthcare plan providers and pharmacies, due to an increase in health care costs. I would recommend Express Scripts Inc. (ESRX); there growth has been consistent and healthy regardless market trends. Express Scripts Inc. is expected to beat the index by 13.4% over the next three years and an expected growth of 15.20% over the next five years; it is already providing a healthy YTD up 19.44%. This company growth will continue throughout these years of progress and would make a strong choice to any portfolio.
Are you still asking yourself "Why should I invest in U.S. stocks?" Now that we know Obamacare is making changes, let's explore the fright of rising interest rates and inflation. Inflation is ever present and interest rates will always steadily rise as the economy improves. The other side of this is that, as interest rates rise, the homeowner market will shift. The best way to counter inflation is with real estate. Though, the current state of the market from an investor's opinion is risky or consisting of slow growth, this is the time you want to get in. The previous recession has caused fear of another, which is causing shares to shift from one end of the spectrum to the next. Right now is the period of uncertainty. Everything is overall undervalued and will continue to grow in the next 15 to 20 years at an extremely healthy rate. Interest rates have always risen more than they have fallen and inflation will always be a factor. Don't let that push you into making a poor, uninformed decision. If you're looking for consistent growth over the next year or two I would recommend Apartment Investment and Management (NYSE:AIV), as it will offer a counter to inflation and consistent growth, regardless of the real-estate sector index as a whole. Home-ownership is currently growing annually and shifting monthly, providing uncertainty. AIV provides an alternative solution that grows regardless of the housing market, as apartments are on the rise. They are literally popping up overnight everywhere because of the uncertain housing market and potential profit margin. AIV has a solid dividend consisting of 3.31% and YTD growth currently 5.07%. Although growth percentage has something to be desired, if timed right, you can return 15.96-22.78% during a current year. The best time to purchase these shares is from August-November and the best time to sell is March-June. Creating a solid investment plan around this company is the best choice for annual growth.
Are we still asking, "Why should I invest in U.S stocks?" Hopefully this question is not being asked not as much as before, if at all. We still need to worry about job growth. The current job growth is shifting monthly, yet growing annually. This might not be the fastest growth area, but at least we can count on consistency so far. Though the labor market isn't increasing as fast as we'd all love, consumer goods and automotive are recovering, not in grand fashion but they are slowly. A company to watch would be Bank of America (NYSE:BAC). Currently, the book value is equal with the company value. BAC is a powerhouse in the financial industry and it isn't overpriced like its competition. Currently, Wells Fargo and U.S Bancorp are 1.9-2.9 times their company's established value on the books; whereas BAC is matching company value to book value. BAC has increased by 22.86% YTD and is estimated to grow 18.25% over the next five years. On top of that the dividend yield is .28%, which is better than no yield.
After all of this, it's hard to believe you were even asking, "Why should I invest in the U.S. stocks?" The market is healthy and is regrouping. It just needs some time until the rest of investors jump on board. Be smart and get ahead. Stop focusing on bonds, commodities, foreign exchange, emerging markets, and jump back into the U.S. exchange. We all know what occurred in 2007 and it was truly terrifying, but we have to move on and revise our investment strategies. If we keep trying to look elsewhere we are going to find ourselves desperate for what we once had. Remember to keep your eyes on Bank of America , Apartment Investment and Management , and Express Scripts Inc. for a start to your new investment thesis.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: The article has been written by an Analyst at ResearchCows, ResearchCows is not receiving compensation for it (other than from Seeking Alpha). ResearchCows has no business relationship with any company whose stock is mentioned in this article. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that potential and existing investors conduct thorough investment research of their own, including detailed review of the company's SEC filings, and consult a qualified investment advisor. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author's best judgment as of the date of publication, and are subject to change without notice.