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After two months of intense market volatility, a correction in the S&P 500 and much mumbling in the financial media about how more than half of the stocks in the S&P 500 are already in a bear market, I thought it was
12 Top Stocks For A Bear Market - Automatic Data Processing Is Our Favorite
Summary
- Though the prices of many high quality stocks have fallen by double-digit amounts YTD, a thorough scan of the S&P 500 finds that these stocks are still overvalued.
- I scanned the whole S&P 500 for non-cyclical stocks with excellent credit histories, strong growth histories and growth forecasts, and came up with 12 candidates for Bear Market buys.
- I calculated a "Bear Market Price" based on their current earnings and the P/E ratio these stocks reached in December 2018's brief Bear Market.
- ADP is most likely to reach a price near its Bear Market Price if the market continues to decline. V and ANTM too, but are less attractive. The rest of the 12 would only be well priced in a severe bear market.
- PayPal has a much shorter history than the other stocks but is the only one that currently offers a Bear Market Price along with the possibility of strong future earnings growth.
Though I have done quite a few different things over the course of a long life, I am best known as a writer of bestselling books about business and health. My success has come because I am a very curious person who doesn't just follow the herd and trust whatever the experts tell us to believe. I do my own research. I collect the facts, look at them objectively, and draw my own conclusions. Over the years, I have been amazed at how much of what everybody "knows to be true" is based on poorly designed studies, many of them impossible to replicate. I approach Investing with the same open mind, challenging the orthodoxies that attract the herd, studying how things really work, and doing my best to come up with an approach, based on facts, that works for me and would appeal to those who find thinking worthwhile.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of CVS, HSY, LOW, PYPL, VTI, VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am not a registered investment advisor. I am an ordinary investor who does research to clarify my own understanding of stocks, ETFs, and the market in general. Before you invest based on anything you might read in my articles or those of any other person offering investment advice online, do your own research to confirm the soundness of what you might have read.
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