Markets are always bothered by something. That can lead to short-term opportunities that disappear when the fear does. That can include anything from a war to the current fears over how long the Fed will raise interest rates. Looking at a long-term chart of the stock market, it’s clear that fears pass, even if they’re later replaced with new ones when stocks have moved higher.  Today, investors may see better returns from companies that are playing to multiple fears. For example, amid the current bear market, the US government has added chip restrictions to China. That’s led to an un...

Bear markets tend to occur every few years. And they include a selloff in all assets – whether of high quality or poor. It’s unusual for blue-chip names to take such a big hit in the span of a year without a strong recovery in the next year. Yet that’s where investors are today. Buying quality names on the cheap can lead to large returns in the years ahead, especially if the market is close to bottoming ahead of a recovery rally. One place to invest now is in asset managers. They’re a cyclical financial company that tends to get hit with declining earnings and revenue in a bear marke...

It’s become clear that last year’s rise in inflation hasn’t moderated yet. It may continue for some time. That can impact the economy in a number of ways. For investors, the biggest is how a company’s expenses can rise and profit margins can fall. In this environment, companies that can increase their prices to cover higher input costs can maintain their profit margins and fare well here. That may mean falling less than other stocks, or even seeing shares move higher in a bear market like today’s.PepsiCo (PEP) is one such company. Shares are up 3 percent in the past year, which looks ev...

The market outlook is grim. Stocks continue to set new lows. Many companies are facing challenges. But a few are using this time of hardship to set themselves up for success when the economy turns around. While it can be challenging to look to the future when the present is fearful, growth must go on. And one sign of a great company is that it finds a new way to grow its business during a time of market fear when few want to make deals. One such opportunity is with cryptocurrency brokerage platformCoinbase Global (COIN). They’ve partnered withGoogle (GOOG) to allow for customers to p...

Traders loved chip companies during the last bull market. In the current bear market? Not so much. Slowing PC sales, a declining economy, and supply chain issues have created a mess for the space. However, the space may have gone from being overly optimistic last year to overly pessimistic today. That suggests with all the downgrades and fear in the space that it may be time for contrarian investors to buy. A few analysts likewise see values now that shares are so far off of last year’s highs. Of the opportunities today, it may be prudent to stick with the best players in the space t...

A bear market wreaks havoc on corporate valuations. Increased uncertainty can cut back on potential deals, and cause companies with a variety of disparate divisions to become priced out of expectation with its potential value. Investors who look for these opportunities and exercise patience can get in on a great company at a good price. It’s a potentially classic case of being able to buy dollar bills for just fifty cents. One potential opportunity is inIAC Parts (IAC). The internet and media holding company has taken a 60 percent dive in the past year. Yet revenues are up 64 percent...

Many sectors and stocks that soared in the recent bull market have been leading them lower as sentiment has shifted. However, some areas are holding up better than others, and are even thriving as they’re well-suited to an inflationary environment. While the energy sector has been one clear winner this year, companies involved in food production have fared well too, thanks to rising agricultural prices overall and concerns over supply chains. And these companies are beating on earnings at a time when many companies are facing downgrades. One relative winner in markets right now is...

Many great companies are built during bear markets. The 1930s saw the rise ofDisney (DIS). The 1970s saw the rise of tech companies likeMicrosoft (MSFT). And the Great Recession started the rise of firms likeAirbnb (ABNB) andUber (UBER). Existing companies can find new opportunities too. Companies looking to expand while the economy look dire are looking beyond the current short-term fear to long-term opportunities. Investors should do the same. While there’s a lot of fear in the tech space right now, many firms are looking to expand production. That’s particularly true of chipmakers...

Some companies are cyclical. Others are not, having steady demand for their products. While the former can have bigger moves during the right part of the cycle, slow-and-steady players tend to reward investors well over time. Examples include defensive companies like consumer goods. In that orbit are a number of similar industries that tend to have steady demand, even in a slowing economy. One such space is the restaurant industry. Consumers tend to downshift on dining out before giving it up entirely. And while many may be skipping on going out altogether, pizza delivery tends to ha...

Consumers tend to find companies they like, and then stick with them. That allows successful consumer companies to build an ecosystem of products, including those that need to be upgraded every few years. Investors who target these companies in a market downturn can fare well thanks to lower prices. And they can also get in ahead of a new piece of consumer tech, which may give shares a quick lift higher. One consumer tech leader isSony Group (SONY). The electronics conglomerate has a number of high-margin items. The most promising for more revenue in the next year is its PlayStation ...