Are there any "safer" places to look for long stock opportunities right now?
I like the tax benefits of long-term holding, but aside from oil, I don't know where to look in this market.
Answers
192 points
BryanPerry answered 4 months ago …
Money is definitely rotating into healthcare stocks, particularly biotech, medical device companies and big pharmaceuticals. Not only will people need these kinds of companies regardless of a recession, but positive earnings from Genentech (DNA) and Johnson & Johnson (JNJ) helped boost the sector.
Though this market isn't playing by any rules, healthcare is typically considered a safe haven for long investors in a slowing economy. The fund flows into the three subsectors—biotech, medical device companies and big pharma—are robust and they should stay firm thanks to some hard-to-find good news in the space.
484 points
warren answered 4 months ago …
Precious metals have and will continue to outpace the market in general also energy especially Uranium will remain strong. I am not and would not invest in any industry reliant on the consumer unless they are very heavily weighted outside of the US and into the BRIC countries or other fast growing economies.
I don't like healthcare, if people can't afford to py mortgage food and gas bills how can they pay for medicine?
Warren,
www.preciousmetalstockreview.com
1782 points
ChaosNantuko answered 4 months ago …
The sectors that are doing best right now are:
Energy (XLE)
Healthcare (XLV)
Utilities (XLU)
Staples (XLP)
Materials (XLB)
If your planning on owning equities, i'd consider those ETFs as the safer domestic plays.
If you sell covered calls on them, that would increase the safety further in this situation.
127 points
kingfisher209 answered 4 months ago …
I would take a contrarian view and would say buying insurance companies is a pretty safe bet. They are down with the overall financial sector close to there book values and risk to reward strongly favors them
Read more from kingfisher209 flag as abuse great answer
2633 points
MNSL answered 4 months ago …
I think some intelligent contrarians will have above average returns in the next five years due to following reasons:
They do not like to follow the crowd
They know bulls in the next rally
They know bubble markets very well
They know value of the business
Finally, they know current hot sectors are not gong to perform continuously and they will avoid these sectors.
They can see future very well.
I think it is better to look for undervalued companies with following characteristics.
Demand for their product and services at least in the next 05 years
Reliable earnings for the next 05 years
With less debt or no debt
Return on equity more than 20%
245 points
Dusty answered 4 months ago …
In this market look for solid companies with good dividends. Think in terms of essential services. A few rural telecoms, AT&T, some utilities, some MLP's, some ships. My personal list of possibilities includes LINE, T, Kimber-Morgan, LG, PNY, FRO, SFL, DRYS. Wait until the current Dead Cat Bounce/Bear Market Rally is over and stock prices drop again (next month?). Stock prices of these companies will mostly only match the market average, small or no real capital gains. But. . ., every month or every quarter they mail out CASH. The lower the price of the stock, the more shares your money will buy. Dividends are in cash per share; the more shares per purchase dollar, the higher the percentage yield. If you do not need the cash for groceries or rent, REINVEST.
Read more from Dusty flag as abuse great answer
108 points
slickchilli answered 3 months ago …
I think the safest long term bet is the SPY itself.
Read more from slickchilli flag as abuse great answerMore from this Category
When do you think tax loss selling will kick in? December? Earlier?Asked by DaveDiggz in Tax Issues one week ago
Do I automatically get audited if I deposit more than $10,000 in one shot at my bank?Asked by Intern in Tax Issues one week ago
Am I going to be hit with another Canadian Income tax bill ?Asked by maurice in Tax Issues 2 weeks ago
If I gift a chunk of money to my kids will they incur any taxes?Asked by TBone in Tax Issues 2 weeks ago
