As the fourth quarter gets underway and risks proliferate amid a stock market slump, now’s a good time for a “deep dive” into the Investing Daily mailbag. I value your correspondence. Investors of all stripes should find the following answers profitable.

Finding the right financial planner…

“I plan to retire soon. I have acquired a nice nest egg and decided it would be prudent to have some financial help managing my way thru retirement. How do I find a reliable fiduciary manager? Internet searches seem to just pile me on with useless ads and unwanted phone calls and emails.” — Michael W.

Mike, I refer you to this Certified Financial Planner search tool that can be screened to each person’s preferences: https://www.plannersearch.org/.

To find the right planner, interview at least three different prospects, taking into account the person’s credentials, experience, and demeanor.

Contending with mounting risks…

“Elevated inflation, politicians at each other’s throats, the U.S. House leaderless, a hawkish Fed, rising yields, the Russia-Ukraine war…risks just seem to be rising every day. Can you recommend a profitable trend for 2024 that I can rely on?” — Donald H.

Sometimes, when the worries get big, you should think small. Small-cap companies should bring both stability and growth to investors in 2024.

The line between small caps, mid-caps and large caps has shifted over time and varies depending on whom you ask, but today’s small caps generally boast market caps of $250 million to $2 billion. Companies below $250 million are commonly referred to as “micro-caps,” while the smallest of the bunch (less than $50 million) are considered “nano-caps.”

No matter where you draw the line, small caps offer a tantalizing benefit to investors: the prospect of higher returns than large caps.

Or as legendary Fidelity mutual fund manager Peter Lynch put it: “Big companies have small moves, small companies have big moves.”

Small stocks are poised to outperform once the Federal Reserve stops hiking interest rates and pivots to a dovish stance in 2024. Whenever the economy heats up, small caps tend to thrive.

Water: The ultimate commodity…

“I’ve noticed that some OPEC countries, particularly the Saudis, are trying to diversify their economies and reduce their dependence on oil revenue. Do you see any investment opportunities in this trend?” — Lenny K.

Human beings will continue to need water, regardless of the cyclical gyrations of the stock market and economy. Pollution, urban sprawl and climate change are destroying potable water sources.

Let’s focus on OPEC-leader Saudi Arabia. Among the desert kingdom’s attempts to modernize its oil-dependent economy is a huge investment in water purification, production, storage, and distribution.

The House of Saud knows that water and renewable energy, not fossil fuels, are the growth opportunities of the next several decades. When a powerful oil-dependent nation such as Saudi Arabia embraces the water industry, well, it should tell you something.

Read This Story: Water: The Most Precious Commodity of All

I think water-related utilities will represent one of the biggest investment themes of 2024 and beyond. These stocks tend to be recession resistant and provide not only growth but the stable income you’d expect from utilities. For the best dividend-paying utilities involved in power generation and water management, click here.

“I’ve been reading a lot of stories about marijuana investing. Is the attention lavished on cannabis companies mostly hype, or do they represent a real opportunity?” —Josh B.

The marijuana industry is definitely a compelling investment opportunity. Sales of marijuana products in the U.S. are projected to hit $72 billion by 2030.

That’s why I’ve just launched a new service detailing how you can financially benefit from the consumer mainstreaming of cannabis.

Called Marijuana Profit Alert, my publication is your guide to reaping profits from the “green rush.” In this service, I provide specific, actionable investment guidance for investors in the booming marijuana and psychedelics industries.

An increasing number of U.S. states (and countries around the world) are legalizing cannabis and psychedelics, which in turn creates new markets, new sales, and big profits for the investors who act now.

Want to cash in on the psychotropic revolution? Consider the advice in Marijuana Profit Alert. Click here to learn more.

John Persinos is the editorial director of Investing Daily.

Questions or comments? Drop me a line: mailbag@investingdaily.com

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