3 Stocks For The Risk-Averse!

If you have been thinking about investing, but are a little gun shy given the past few months, I have put together a short list of three stocks you can invest in that will enable you to sleep at night.

These companies are all large in size, and able to withstand a big market decline.  You won’t get the same growth that you can realize from investing in a high-flying growth stock.  But you will get steady income in the form of a dividend.

So, here we go:

  1. Verizon (NYSE: VZ) – One of the largest telecommunications companies in the world with a market cap of $239 billion, Verizon is as steady as any business can be.  They have great customer loyalty, and their cash flow is on par with – if not stronger than – cable companies.  They boast the most reliable service, and their subscribers number 151.8 million – more than any other company.  Verizon is investing heavily in the rollout of 5G, which is expected to be the next big thing in telecommunications.  Verizon pays a dividend of 4.15%.
  2. Home Depot (NYSE: HD) – Home Depot is the largest home improvement company in the United States, with a market cap over $200 billion.  Over the past three decades, Home Depot has been one of the best investments in history.  Unlike Macys, Bed Bath & Beyond, and Sears, Home Depot has demonstrated itself to be “Amazon-proof”.  It is one of the best run retailers in the business.
  3. Alphabet (NASDAQ: GOOGL)– Alphabet is the parent company of Google, which is one of the top three most valuable companies on earth.  Google’s business is rock-solid; they generate an obscene amount of cash.  Google owns 44% of the global advertising market which is $88 billion.  They one of the leaders in autonomous driving.  Their life science research organization, Verily, cites a mission to “make the world’s health data useful so that people enjoy healthier lives.”

Over the next five to ten years, any one of these investments should outperform the market and would be great additions to a risk-averse investor’s.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author has no position in any of the stocks mentioned in the article.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

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Will We Have A Bear Market In 2019?

bear market 2019

Photo: Eve Livesey.  

Good morning.

“Are we in a bear market?”

“What should I do if we’re in a bear market?”

As the end of the year approaches, you will start to see many financial newsletters calling for a bear market in 2019…especially considering the way the second half of this year has gone.

Throw in the potential Fed rate hikes, as well as the trade spat with China (reportedly resolved as of yesterday, but who knows?), and you have a recipe for a recession – which could lead to a bear market.

The truth of the matter is that no one knows for sure as to what next year will bring.  I wouldn’t be surprised to see the market continue to move higher, and a bear market wouldn’t shock me either.

The last bear market we had was between 2008 and 2009.  It lasted for 15 months.  Since the 1930s, the U.S. stock market has had eight bear markets, lasting 1.4 years on average.

So what should you do if there’s a bear market?

It depends.  If you need your money in the next three years, you should probably take it out of the market.  If this year has taught you anything, it’s that you never know when a market sell-off is going to happen.

If your time frame is more long-term, which I hope is the case, then do nothing.  If you are a regular investor, and you have a fixed amount that you invest each month, then continue to do so.  If we have a bear market, you will have bought stocks at some very good prices.  Do not listen to the pundits that tell people to jump in and out of the market because they believe a bear market is coming.  I said it before and I’ll say it again: it is impossible to successfully time the market.

We here at Wealthy Joe are long-term investors.  We don’t let a sell-off or bear market scare us out of owning great businesses for the long term.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *