Third, long-duration stocks that are unprofitable — typically these are growth stocks found in the tech sector — should be avoided, Kostin said. Fourth, Kostin likes stocks that have growing profit margins despite the tightening economic conditions. He shared a list of stocks with the most resilient profit margins over the last few year, and which are expected to grow margins next year. And finally, Kostin recommended avoiding stocks whose profit margin growth in recent years may have been due to a decrease in expenses as opposed to an increase in sales. Rising or normalizing expenses for these companies could chip away at profit margins.

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