Dividends4Life: 5 Top Stocks to Buy in a Bear Market

5 Top Stocks to Buy in a Bear Market

Posted by D4L | Friday, March 27, 2020 | | 0 comments »

While there are a number of factors responsible for pushing the stock market lower, the spread of COVID-19 looks to be the match that lit the flame. This lung-targeting illness has spread to 113 countries, been confirmed in more than 118,000 people, and is directly responsible for nearly 4,300 deaths worldwide, according to the World Health Organization. The good news, though, is that bear markets have always opened the door for long-term investors to pick up great companies on the cheap, and this instance will prove no different. Below you'll find five top stocks that you should seriously consider buying during this bear market...

One of the best ways to protect yourself from steep losses during a bear market, as well as set yourself up for steady income when the next bull market arrives, is to consider utility stocks. In particular, NextEra Energy (NYSE:NEE) comes to mind. Interestingly, gold-mining stocks have been clobbered as the market has headed lower, likely on some combination of demand concerns from China and margin calls (i.e., investors selling to cover margin calls). But physical gold has been exceptionally strong. This suggests that a high-quality company like SSR Mining (NASDAQ:SSRM) should be primed for success. If there's one fact you can take to the bank, it's that we don't get to choose when we get sick or what ailments we develop. That makes pharmacy chains like CVS Health (NYSE:CVS) a potentially valuable business to own a stake in no matter how well or poorly the economy is performing. You have to keep in mind that the recent shock to the market is exogenous and has nothing to do with a breakdown in our financial system. That's why buying into semiconductor giant Broadcom (NASDAQ:AVGO) makes a boatload of sense. Finally, investors should give strong consideration to adding American Express (NYSE:AXP) to their portfolios on this decline.

Source: Motley Fool

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