Top 5 Stocks to Invest In

The stock market is always interesting and at the moment especially given the events that are occuring. Stock markets and specifically in the US are breaking records and appreciating steadily over time. The economic environment is very strong in the US where unemployment is low, wages are rising, corporations are growing their profits over 10% a year, and huge tax cuts for corporations are coming that will boost profits considerably. It's not surprising that we are seeing stock prices rise to record levels. I believe this trend will continue throughout most of 2018 as the momentum has started picking up and there are no signs of any slowdown in the short-term.

In such an environment there are a number of really good stocks to invest in. I am going to go over 5 stocks that I think are poised to lead the market and appreciate at higher than average rates of growth. These stocks are not all growth stocks, some are value stocks that are benefiting from a growing global economy. Here are my 5 favourite stocks to invest in for the next 3 to 5 years.

1. Ferrari N.V. (RACE) - $119 per share. Ferrari makes high end sports cars for wealthy car buyers. Ferrari is a very profitable company that is able to charge high prices for their cars and has buyers go on waiting lists to receive their cars. As the economy grows the number of people able to buy such high end cars like Ferrari increases so the demand grows for their products. Ferrari is looking to grow their car selection as well by producing a Ferrari SUV which should be very popular and if other car companies are an indication could become the most profitable vehicle that Ferrari produces.

1. Bank of America (BAC) - $32 per share. Bank of America is one of the largest banks in the USA and is a bank focused on basic banking services like mortgages, credit cards, loans, investments, and banking services to individuals and businesses. As the American economy strengthens Bank of America's financial results have improved and it now is paying a regular dividend and growing that dividend as profits improve. As interest rates start increasing Bank of America's loan portfolio will be able to earn higher interest rates and it's net interest margin will increase. This bank is very leveraged to interest rates so that a small change in interest rates has a huge effect on its profitability. I expect interest rates to increase slowly therefore leading to Bank of America's profits growing at a high rate of growth.

1. Dollarama (DOL) $169 (Cdn) per share. Dollarama is the largest dollar store in Canada and it dominates the market here. As other bricks and mortar retailers have struggled with online competition, Dollarama, has been able to grow and capture market share by bringing consumers exceptional value. In fact Dollarama has price points lower than Wal-Mart's for many products and so for value conscience consumers it is seen as one of the best places to shop. Dollarama has been able to increase the number of stores throughout Canada without significant cannibalization and it estimates that it can still double in size within the Canadian market.

1. Wynn Resorts (WYNN) $180 per share. Wynn Resorts is the premier casino operator in the world and owns some of the most renowned casino properties in Las Vegas and Macau. It recently opened its most expensive property the Wynn Palace in Macau on the popular Cotai Strip in Macau. This property should be able to earn significant cash flow and lead to high rates of profit for Wynn Resorts in the next few years. Wynn is also building Wynn Boston and will be increasing the size of their Las Vegas properties immensely by converting the golf course at the back of its current properties to a lake with additional casino buildings, hotels, and entertainment facilities. Recently Steve Wynn the founder of Wynn Resorts was accused of sexual harassment at the workplace, this may be damaging to the company, though it should be noted that this is the first time such accusations have ever been heard so it will take some time to see how damaging this news becomes.

1. Facebook (FB) $190 per share. Facebook is the leading social media website and also owns Instagram and Whatsapp. It's financial performance is amazing as its businesses are extremely profitable allowing the company to have little to no debt and a growing cash pile. The company is growing very quickly and given it's dominance through it's social media website it faces little competition from other social media websites. Given the lead it enjoys from it's competition it is able to increase it's lead by incorporating new innovations into it's site. Advertisers primarily use Google and Facebook for their online advertising and the growth of this market will likely go to these two online giants.

I think these 5 stocks are excellent investments right now for those investors looking for long term investments that can grow at above average rates of growth. These investments would be considered medium to high risk so investors should be prepared for higher than average volatility in these investments but I believe the risk is worth it as the return over 3 to 5 years will be considerable. Good luck investing.