The economy is slowing down, and even meets the technical definition of a recession. But every recession is different. This time, the economy is slowing as pandemic stimulus wears off and as central bankers look to tackle inflation. That trend won’t end the technology transformations underway today. A number of promising news ideas are coming to fruition in the coming years, and investors who buy when the market is down now can get a high reward later. One area is in the development of electric vehicles. For the most part, the focus has been on cars and sedans. But the growing EV tru...

In a bull market, investors may ignore valuation in the hope of getting into a deal with more upside potential. However, in a bear market, deals get much more scrutiny, and potentially offer more upside with less downside risk. So those companies inking deals now are likely getting good, if not great, deals. That means they can benefit over time as the deal plays out, and as markets get bullish once again. ChipmakerIntel (INTC) just inked a deal withBrookfield Asset Management (BAM). Brookfield will invest up to $30 billion for chipmaking facilities. This plays to Brookfield’s streng...

Investors don’t need to get caught in a trap between a growth stock or a value stock. In a bear market, many fast-growing companies can have their valuation knocked down until they’re a potential bargain. That gives investors the best of both worlds – a reasonable value, with some upside when the market recovers. Right now, a number of mid-sized companies fit the bill. The trick is to finding firms that are leading their industry while also still offering upside potential. One such player in the banking industry isPNC Financial Services Group (PNC). The bank isn’t one of the major Wa...

Every quarter, hedge funds, investment firms, and other notable individuals have to update their stock holdings with the SEC, via a 13F filing. The data can show what moves investors have made in the past few months. With the market still coming off a correction, looking at the data as a whole, investors can see where the broadest number of major investors were the most bullish. Following this smart money can tend to outperform the market over time. While 13F data may be incomplete, or even out of date for some funds by the time they’re published, a number of companies saw interest f...

When times get tough, some types of companies have some big problems. Others tend to fare well. Those that do well succeed in part because they’re in a recession-resistant industry. One type of company fitting that bill is one that offers pick and shovel plays. While that can mean those specific tools, the broader concept is the infrastructure and tools needed to keep an economy or sector going. These stocks tend to hold up well, even in fearful markets. One such play isDeere (DE). The agricultural equipment maker may not trade like a growth stock, but with food prices rising, the co...

Consumers are starting to show signs of pulling back on spending in a number of areas. For a recession, that tends to mean a large slowdown in a number of high-cost activities, such as cruises or other vacations. That also means that low-cost forms of entertainment tend to hold up well. As with low-cost food or beverages, demand remains much stickier, no matter how the economy declines. Investors who follow this trend can find profitable opportunities now. One potential low-cost opportunity is in sports betting. Legalized online betting is only a few years old, and it’s still a trend...

There’s nothing shocking in admitting that consumer spending drives the economy. And with uncertain and inflation high, it’s also no surprise that consumers are trending with lower-cost goods and services, foregoing higher-end ones. That’s been somewhat apparent this earnings season, as high-end retailers have struggled more than big-box stores that cater to a cost-conscious clientele. With these companies now reporting earnings, there’s a sigh of relief as things haven’t been as bad as feared. The poster child for those fears has beenWalmart (WMT). The company reported better-than-e...

Some industries tend to stay the same over time. That can bode well for investors, provided that industry has already consolidated into a few big players. That can be seen with companies like consumer goods. For industries that continue to face new innovations, however, leadership can change in time. Investors who look beyond the current leaders and look to those becoming new leaders stand to make an outsized return as that trend plays out. One industry seeing a shift in leadership is in internet routing equipment. Competitors are starting to outperform industry leaderCisco Systems (...

The market has recovered nearly half of its losses from the bottom – and in just the span of a few short weeks. That may not mean we’re out of the woods yet. But investors looking for stocks that could have a large move from here need to look for a company with a catalyst. That could be a new product or service, or simply a company that benefits from a macroeconomic trend like lower inflation rates. Following these cyclical companies at the right time can make traders a fortune. Right now, homebuilders seem poised for further losses. However, if the Fed starts to pivot on interest ra...

A bear market is a great time to build a position in industry-leading companies. A market selloff that sends great companies down can lead to improved returns in the future. Those returns could be even better buying companies that aren’t the top name in the industry. The second-best company in the space will likely get hit a little bit harder in a market downtrend. But it may see higher returns when the market turns around. Right now, that’s playing out with home improvement retailers.Lowe’s (LOW) is getting a cut on analyst expectations. But shares already trade at 16 times earnings...