Stock Market Bottom – Best Stocks to Buy Today
Down Markets but Still Presenting Opportunities
Today’s stock price turbulence, political folly, and uncertain economy is making stock picking very difficult.
However, as you’ll note from the charts below, there are sectors to watch and individual stocks with momentum to buy. Of course, a deeper analysis of potential buys needs to be done before committing to them.
Although the NASDAQ, S&P have done well in the last 6 months, the markets are sluggish of late. There’s little certainty about when the economy will recover, although 2025 after the Presidential election might bring a full return of the US economy and the stock market. For today and the next 6 months, Google Alphabet, FB Meta, and Pharmaceutical/biotech stocks are doing well right now.
Best Stocks this Week (May 30th)
Chip stocks and AI stocks have been particularly hot including Super Micro Computer, AMD, and Nvidia.
Once the economic dust settles in the next two years, 2025 and the next 5 year period should be excellent. Consumers have cash, companies have cash, manufacturing will return to the US, and consumer demand isn’t finished yet. The California drought is over, and when Silicon Valley gets going with AI and its innovation process, we’ll see tech stocks fly on the NASDAQ.
Economic Clouds will Dissipate by End of 2024
Sure there’s turbulence and economic shock waves from the higher interest rates. The effect of those rate hikes is hitting now but it wasn’t as damaging in the US as expected. It looks like Europe is past it, although Asia is adjusting slowly. The debt ceiling spending limit is an issue coming up, but that matter will be kicked down the road like usual.
Biden let out a ton of oil from the reserves to keep the oil prices down but he can only do that for another year. The Saudis will have their response soon enough. They’re plotting that right now. You’d be very wise to investigate oil stocks, both US oil stocks and Canadian oil stocks. Rig counts are falling, and when the global economy heats up as interest rates fall, it stands to reason the price of oil will jump.
So oil prices are low now, and you may see a doubling of your oil stock money by 2025. Buy and patiently hold might be wise.
Home Builder Stocks: & the 5 Year Housing Market Outlook
The housing market too has been in the doldrums for a while, and is likely to bounce back in late 2024 as interest rates fall. The 5 year housing market outlook is good. It will recover. Huge demand and companies rich with capital investment cash will get into building homes and multifamily units. Anti-NYMBY sentiment will grow as Americans fight for their right to be housed affordably. And the Fed will want to start lending again so it can earn money.
Check out Toll Brothers Stock (TOL)
Investors apparently believe in homebuilder stocks.
See more on the general stock market forecast, the 3 month predictions, 6 month predictions, and the 5 year outlook. If you’re an average investor or stock trading enthusiast, it might be wise to buy the dip, and hang on for another 5 years. Some call this opportunity the chance of a lifetime, so take it seriously. Fortunes will be made by those lucky enough to have money to invest right now.
Definitely review the stocks listed below.
Best Performing Stocks May 2023
Which stocks have investible profiles and which have momentum to give you confidence?
When Will the Stock Market Hit Bottom?
No one really knows when the stock market will bottom out. Experts are all over the place with many calling for a recession that just never seems to happen. There’s always something that lifts the markets. It could be the pandemic was our worst event, and now everything seems better than where we were.
The pandemic is lifted with everyone returning to work productivity, travel, and this summer, a time to enjoy.
The smart investor is waiting patiently for all the folly to end, markets drop, when the Fed stops raising the central bank rate. There’s too many variables right now to predict however it looks like they might be ready to lower rates by the fall 2023.
Check out Price Earnings Ratios
Price to sales ratio on the S&P shows an alarming trend never seen before. The Price to sales ratio measures companies revenues to the price. As we can see, revenues are not keeping up and we’re well into the recovery now. Both price and revenues will grow over the next year, up until the big event.
Learn more about the stocks that comprise the S&P 500 Forecast, NASDAQ Forecast, Dow Jones Forecast and the Russell 2000 index. Please do check out stocks to avoid, the best stocks to buy, best tech stocks, and the forecast for the next 6 months.
You’re probably thinking that anyone intrigued by the matter of the stock market crash is frightened, pessimistic, and ready to sell at a loss. However, what if many investors are looking for ways to profit from a downturn or crash? It’s a big price change event that will catch others off guard. Wouldn’t that be a smart investor who might consistently make money off of a big rise or dip? And I’m not talking about short selling.
Bitcoin and Cryptocurrency stocks ( both rising of late with Bitcoin at $2000) are a case in point. Right now their price is driven by hype and no fundamental value. Hypesters say it’s a certain thing that Bitcoin and Ethereum will ride through the next recession. But central governments need their own currency to manage their country’s economies. This is why each country such as China will create their own cryptocurrency and fuse it with their own dual and price fixed currencies. The US won’t have that luxury.
The collapse of a country’s currency’s value would have to be catastrophic. The volatility of Bitcoin could be even more extreme in advance of the next crash. Financial services firms and banks might be devastated in a recession where cryptocurrency comes into vogue.
The Experts Dip Stocks to Buy:
Investorplace gives their pre-crash stock picks:
- Duke Energy (NYSE:DUK)
- Bunge (NYSE:BG)
- Murphy USA (NYSE:MUSA)
- Kroger (NYSE:KR)
- Unilever (NYSE:UL)
- Dollar General (NYSE:DG)
- American Tower (NYSE:AMT)
- Johnson and Johnson (JNJ)
- Rite Aid (RAD)
- 3M (MMM)
- Altria Group (MO)
- Smith & Wesson Brands (SWBI)
- Lockheed Martin (LMT)
And Yahoo likes these recession resistant picks:
- Apple (NASDAQ:AAPL)
- Microsoft (NASDAQ:MSFT)
- Adobe (NASDAQ:ADBE)
- Procter & Gamble (NYSE:PG)
- Walmart (NYSE:WMT)
- PepsiCo (NASDAQ:PEP)
- Costco (NASDAQ:COST)
The Fool for their market low picks selects United Health, Mastercard, Facebook, Google, Crowdstrike, Snowflake, and Twilio.
Fortune Builders likes these picks:
- Apple Inc. (NASDAQ: AAPL)
- Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL)
- QUALCOMM Incorporated (NASDAQ: QCOM)
- Salesforce, Inc. (NYSE: CRM)
- Palo Alto Networks, Inc. (NASDAQ: PANW)
- The Walt Disney Company (NYSE: DIS)
- GXO Logistics, Inc. (NYSE: GXO)
- The Boeing Company (NYSE: BA)
- MercadoLibre, Inc. (NASDAQ: MELI)
- The Goldman Sachs Group, Inc. (NYSE: GS)
Salesforce and Apple seem like long shots, however if you wait to market bottom in let’s say February/March, these may be the best bargain stocks to buy.
The Big Stock Market Gains are Well Gone
The key point for you as a self-directed investor, is how you prepare for and research opportunities during the bottoming period. New big market gains are coming within the next 5 years. The 3 month and 6 month outlooks are poor.
What are the Best Types of Stocks?
Investopedia, advises in their guide to look for:
1. counter cyclical (not dependent on employment and consumer confidence)
2. not over leveraged (those with high debt to equity, and vulnerable to rising interest rates)
3. strong cash flow (big sources of revenue regardless of their debt)
4. not speculative (established companies, with stable earnings and less volatility)
Any stocks with all those characteristics combined stand a fighting chance.
US News reports 7 stocks that soared during the last two recessions:
Target (TGT)
Lowes (LOW)
Nike (NKE)
NextEra Energy (NEE)
Walmart (WMT)
Dollar Tree (DLTR)
Home Depot (HD)
NASDAQ’s Recession Picks
NASDAQ says Roku (NASDAQ: ROKU), O’Reilly Automotive (NASDAQ: ORLY), and Costco (NASDAQ: COST) are 3 great stocks to buy.
More interesting insight in prediction for the 2024 stock market, Best Stocks to Buy 2023 and next year as well as opinions about whether the Stock Market will Crash.
Stock Market Predictions 2024 | Stock Market Today | Google Stock Forecast | Tesla Stock Price | Long Term Stock Forecast | Stock Prices in 2024 | Market Rally in 2024? | Tesla TSLA Stock 2024 Outlook | Stock Market Crash | 3 Month Stock Market Predictions | 5 Year Stock Forecast | Dow Jones Forecast | NASDAQ Forecast | Oil Price | S&P Predictions | Stocks Next Week | 6 Month Outlook | Stock Trading Platforms | Stock Trading | Stock Predictions Software
