
Stick With Defensive Stocks in the Months Ahead
Investors expecting a turnaround in stocks this fall just had their hopes dashed. But investors who continue to stick with companies with great long-term potential can fare well. In today’s environment, companies that play to a defensive nature – where consumers tend to spend no matter how the economy performs—offer good returns relative to today’s risks. Investing in these companies now, with share prices down, can offer moderate gains with less potential downside going forward. One traditional place where investors can be ...
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Investors Still Love Industry Leaders Now
It’s a challenging market, but a few themes have been playing out in recent weeks. Great companies are holding up better than lower-quality ones in the same industry. And even with all the uncertainty out there right now, investors are willing to buy great companies well off of last year’s highs. That theme is playing out this earnings season. Companies that have been reporting poor numbers may be selling of, but investors have been swooping in to buy. One such players is ...
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Use Short-term market Weakness to Profit from Long-Term Tech Trends
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 ...
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Fortune Favors Those Making Bold Deals Now
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. Chipmaker Intel (INTC) just inked a deal with Brookfield Asset ...
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In Tumultuous Markets, Look for a Combination of Growth and Value
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 ...
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For Patient Investors, It’s Time to Follow the Smart Money
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 ...
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Pick and Shovel Plays Don’t Go Out of Style
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 ...
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Buy Leading Companies Offering Low-Cost Entertainment
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 ...
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