Stick With Stocks That Have Inflation-Fighting Power

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 ...
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Stick With Companies Looking Forward Amid the Current Economic Slowdown

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 ...
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Pessimism In the Chip Space Is Getting Overblown – Buy This Top Name

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 ...
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Look For Mispriced Opportunities in Bear Markets

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 in IAC Parts (IAC). The internet and ...
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Keep Investing in Trends Holding Up Now

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 ...
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Invest In Expanding Companies During Bear Markets

Many great companies are built during bear markets. The 1930s saw the rise of Disney (DIS). The 1970s saw the rise of tech companies like Microsoft (MSFT). And the Great Recession started the rise of firms like Airbnb (ABNB) and Uber (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 ...
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Stick With Businesses with Steady Demand

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 ...
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This Consumer Brand Is Priced for a Growth Move Ahead

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 is Sony Group (SONY). The electronics conglomerate ...
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