Young TFSA (Tax-Free Savings Account) investors should be thinking about growing their wealth in a low-risk way over the course of many years or decades. Indeed, being too cautious with TFSA funds may not be all too ideal for young investors who have 25 years or more to invest. That being said, such young and new investors shouldn’t “chase” hot stocks or seek the “growthiest” play in the market.
Often, the hottest growth plays on the forefront of the latest technological trend (it’s artificial intelligence, or AI, nowadays), which can lead investors to pay up hand over fist for a business that could be in for a painful valuation reset. Remember, best-in-breed companies can lose you money if you pay too much of a premium. In the case of various AI chip stocks, you’ll pay a hefty multiple that bakes in massive growth. And if such growth peaks out earlier than expected, the potential corrective downside…
