There is an old adage that says to “sell in May and go away.” This is a strategy of selling stocks this month and then returning to the market in November after the summer, because there is a belief that stocks underperform during this period.
While there is some merit to stocks underperforming during the summer months, this strategy has worked only 22 times in the last 53 years, and investors would have missed out on some big gains last year
The better move is to stay invested, and there are still some great buying opportunities out there. Let’s look at two growth stocks to buy now for the long term. Amazon: Mounting momentum One of my favorite stocks to buy right now is Amazon (NASDAQ: AMZN).
The company has been running on all cylinders with both its cloud computing and e-commerce businesses, and it has strong growth opportunities ahead. Meanwhile, on a forward price-to-earnings (P/E) basis, the stock is cheap (31.5 times multiple) from both a historical perspective and compared to brick-and-mortar peers Walmart and Costco, which trade at over 40 times multiples. Within its e-commerce business, Amazon continues to see strong operating leverage driven by the efficiency gains it is seeing from its leadership in robotics and artificial intelligence (AI).