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As we've pointed out to Money Morning members, knowing the best stocks to buy now can give you a huge advantage when markets sell off and stocks are basically on sale.
That's why we've been watching out for the sectors of the market that will have a bright future regardless of the recent market gyrations.
Although it seems somewhat counter intuitive one such space would be the asset management sector. Asset managers and brokers may see some short-term weakness in a falling market but the long-term outlook is strong.
You see, over the past few decades there has been a transfer of retirement risks from corporations to individuals. This has left individual investors responsible for investing assets to fund their needs.
It has also created a huge market for asset managers.
Social and demographic trends are very positive for asset management firms. Assets have flown into investment products in the past several years, and the amount of assets under management at the end of May surpassed the previous high levels of 2007.
One huge reason for the flow of money: Baby boomers are hitting retirement.
Over the next decade, boomers will be retirement and looking for help to manage their new financial environments. Also, many boomers will be eligible for catch up contributions to their retirement plans, which should add to the pool of available assets.
Plus, as the economy slowly continues to recover and the unemployment rate recedes, the pool of assets looking for investment advice and management will continue to grow for an extended period of time.
This is not merely a U.S. phenomenon but a global trend towards personal responsibility for asset accumulation.
Market volatility may cause some price swings in the shares and wise investors will use them to accumulate the stocks in anticipation of very high long-term returns.
Here are two stocks to buy now that will rise as these firms take on more assets under management in the next few years.
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. He set his sights on becoming a stockbroker - and by sheer force of determination, eventually got in the door at a small brokerage firm. Today, as a 30-year veteran of the financial services and investment industry, he has served as a broker, advisor, and portfolio manager, and draws on this three decades of experience to help investors worldwide find "unreasonably good" bargain stocks, multiply profits and build their nest eggs.
Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of "Max Wealth" and Heatseekers.