Ten Stocks to Buy on the Dip
If we get another 5% correction in stocks in the coming weeks, it is best to have your ?BUY? list on the table and ready to go. That way you don?t have to waste time looking up ticker symbols.
I?ll give you mine.
Let me get this right. Stocks screamed upward last week because:
1) The Federal Reserve isn?t going to raise interest rates anymore.
2) The price of oil is holding steady in the high $40s, less than half the levels two- year ago.
3) Commodities are still holding close to multi-year lows.
4) The US dollar finally took a rest.
5) Corporations are continuing to buy back their own stock like there is no tomorrow.
6) Investors are yanking money from abroad and pouring it into the US, because it is the only place they can obtain a positive return, especially in stocks.
7) The FBI gave presidential aspirant Hillary Clinton a boost when it closed its email investigation.
May I point out the blatantly obvious right here?
These are all reasons for the 90% of US companies that consume energy to increase earnings and boost their share prices.
Only the 10% that derive revenues from ripping oil and commodities out of the ground should get hurt here.
Of course, the market doesn?t know that. It was anything but rational last week. There was only one direction, and that was UP.
The Dow and the S&P 500 are now, once again, posting positive numbers for 2016.
What is even more stunning is that these increases in prices are occurring in the face of US macro economic numbers that are mediocre, at best.
Only housing, which accounts for about one third of the US economy, has been on fire. Prices are still rising everywhere.
Even more incredible is that the stock market reached new highs in the face of a geopolitical backdrop that was nothing less than horrendous, with a major terrorist attack in Nice, France, followed by a coup d?etat in NATO ally Turkey.
If nothing else, corporate buybacks, sticking close to record levels, should reaccelerate here, which could reach $1 trillion in 2016. Some 4.7% of the outstanding share float of corporations is disappearing every year!
I am, therefore, going to give you a list of MY TEN FAVORITE STOCKS to buy during the next dip, highlighting the sectors that will lead us into a pre/post election yearend rally.
The themes here are homebuilders, consumer discretionary, solar, biotech, big technology, and international. And I?ll give you some mouth watering yield plays among the REIT?s and master limited partnerships.
?Even the entire interest sensitive sector is on the table as a value play.
Watch out, because when I sense that the market has opened a window, the Trade Alerts are going to be coming hot and heavy.
You have been forewarned!
Read ?em and weep with joy!
10 Stocks to Buy at the Bottom
Lennar Homes (LEN) $48.65
Home Depot (HD) $134.78
Facebook (FB) $116..86
IShares NASDAQ Biotech Index (IBB) $272.53
Apple (AAPL) $98.78
First Solar (FSLR) $47.73
Gilead Sciences (GILD) $86.67
Alerian MLP ETF (AMLP) $12.88 with a 6.84% yield
Simon Properties Group REIT (SPG) $222.94 with a 2.87% yield
Wisdom Tree Japan Hedged Equity (DXJ) $41.37
