3 Types of Cheap Stocks to Invest In

It’s not the easiest thing to find cheap stock that can be purchased. The reason for this is that it is doubly difficult to do so especially when the market is registering numbers at an all-time high.

That said, there are a few options, regardless of the state of the market, that remain excellent options, and so, here are 3 of these options:

#1: Penny stocks

Most penny stocks are not worth purchasing – yes, that’s the truth. One reason for this is that they are never run on a major exchange or even subject to listing requirement that can be best described as stringent.

However, there are a few that do make it to the big leagues such as GrowLife and Medical Marijuana Inc. in recent times. Yet the truth is that this type of shares has its fair share of scams and fraud that you would have to be wary of.

#2: Value Stocks

By definition, a value stock is one that has fallen out of favor with the market. Yet it is one of the best options around considering how it made Warren Buffett almost $60 billion.

These stocks are usually traded with a low price-to-earnings multiple but the best of them tend to prove the market wrong as their value begins to climb.

However, these stocks aren’t easy to find. A couple of examples include Avis and Siemens.

#3: ETFs

These funds are like mutual funds but are far more advantageous with one of them being the lowest fees that are charged to the investor. Another clear advantage is that they are transparent and one will know what stocks they have. Best part: you can trade in and out at the price that you want. Probably the best type of ETFs are small-cap value stocks.