- Markets are experiencing turmoil, with uncertainty about interest rates and inflation fueling volatility.
- Investors should focus on stocks with long-term growth potential, according to Bank of America.
- The bank has listed 23 stocks to add to your portfolio if you’re looking for long-term returns.
It’s been a crazy year for stocks.
High inflation and uncertainty over the timing of the Federal Reserve’s hike injected a significant amount of
in the markets.
The VIXan index that measures the level of volatility of the S&P500, jumped and is up 72.4% year-to-date. Meanwhile, investors have shied away from riskier assets like tech stocks and bitcoinspivoting towards safe havens such as gold and 10-year Treasury bonds.
But that shouldn’t deter retail investors from adding well-positioned, long-term stocks to their portfolios, according to Bank of America. The bank’s thematic investment department recently released a list of stocks exposed to long-term demographic trends.
Thematic investors focus on trends that drive growth, rather than specific companies or sectors. Several analysts have argued that growth stocks are now available at a steep discount.
“Based on our assessments, the growth category is now the most undervalued,” Morningstar’s Dave Sekera said earlier this month. “Now is not the time to reduce exposures, but to increase them wisely, especially in high-quality companies.”
Here are the 23 U.S.-listed stocks that Bank of America says will benefit from long-term trends: