Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forget Dogecoin: Add These 2 Stocks to Your Portfolio Instead

Published 2021-04-19, 01:30 p/m
Updated 2021-04-19, 01:45 p/m
Forget Dogecoin: Add These 2 Stocks to Your Portfolio Instead

Forget Dogecoin: Add These 2 Stocks to Your Portfolio Instead

Cryptocurrencies like Bitcoin and Ethereum have seen massive gains since the start of the year. Because of this, investors have been pouring into the crypto space, looking for that next big mover. In February, investors got just that when Dogecoin made a big move from $0.007 to as much as $0.08. However, the cryptocurrency would go on to lose nearly half of its value over the next weeks, falling to $0.049.

However, the story doesn’t end there. Those that held onto their Dogecoin bags have since been greatly rewarded. At the start of the month, Dogecoin was back to $0.05 and went on to see a massive rise to as much as $0.45! This tremendous gain over such a short period is something usually only seen in dreams. Because of this massive jump in value, the crypto space has once again caught the attention of retail investors.

However, those that are true followers of the Motley Fool principles of investing should realize that this is extremely risky behaviour. Cryptocurrencies are hard to value since their price movements are based solely on speculation. Instead, it would be wise to allocate funds towards strong businesses with bright futures. In this article, I will discuss two stocks that investors should consider buying instead. You may not see a similar nine times return over a month, but you won’t be disappointed either.

Jumping onto societal trends can be a good investment strategy Although the cryptocurrency hype is a trend that I would be wary of, there are other societal trends that would make much better investments. For example, the e-commerce trend seems like it’s here to stay. In 2020, businesses needed to accommodate for global shutdowns due to the COVID-19 pandemic. One of the solutions employed across the globe was to upgrade online shopping offerings. As a result, companies like Shopify (TSX:SHOP)(NYSE:SHOP), which facilitate this process, saw massive improvements in revenue over the past year.

In 2020, Shopify became the largest company in Canada by market cap. While many would argue that this places the company at an absurdly high valuation, I would argue the opposite. Shopify holds the second largest share of the online shopping market in the United States, only trailing Amazon (NASDAQ:AMZN). The company has also managed to branch into the video production and e-sports markets, which will only bolster its presence around the world. Shopify has been a winner since its IPO, and it’s showing no signs of slowing down.

A second top stock idea The renewable energy space is another industry that should see massive growth in the coming years. From this, there are many different markets that investors can choose to focus on. I believe that the renewable utility space has the best risk-to-reward profile at the moment, and Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is the runaway leader among its peers.

Brookfield Renewable operates a diverse portfolio of assets that span across the globe. In total, its facilities are capable of producing more than 19,000 MW of power. The company has been prioritizing growth over the past few years and estimates a total operating capacity of about 23,000 MW after the completion of its current construction projects. The global renewable utility market is expected to grow at a compound annual growth rate of 8.3% from 2019 to 2026. With Brookfield Renewable leading the way, it’s hard to see that projection not come to fruition.

The post Forget Dogecoin: Add These 2 Stocks to Your Portfolio Instead appeared first on The Motley Fool Canada.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Brookfield Renewable Partners and Shopify. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Amazon, Shopify, and Shopify and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2021

This Article Was First Published on The Motley Fool

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.