The past few days have been volatile for markets: Headlines from China of protests and lockdowns are changing by the hour, while Russia’s war with Ukraine lingers on and the economic picture at home shifts with every new piece of data. We’re living through one of the most dynamic periods in recent memory. It’s nearly impossible to estimate precisely when China will fully reopen from the Covid pandemic, or how technology stocks and interest will react to the next Fed speech. It would be more prudent, if you have the cash, to make a small purchase on something reasonably priced that pays a dividend and can increase its earnings — no matter the twists and turns the economy takes. We are talking about stocks that offer defensive growth and do even better if the economy slows down. Several names that fit this description are rolling over today and we think those declines are starting to look attractive. In the portfolio, we are talking about Johnson & Johnson (JNJ), Procter & Gamble (PG), Constellation Brands (STZ), and Danaher. (DHR) Even Linde (LIN) has some defensive growth attributes, but the stock just had a huge move and we are looking for a little more of a pullback. Also, we are always looking for opportunities outside the portfolio. In today’s Morning Meeting, Jim Cramer discussed the possibility of adding the rail stock CSX to the bullpen. One key to successful investing starts with buying low in a company and then watching the stock trade higher. But a stock being down is never reason enough to buy. It has to have the fundamentals, too. Given the many uncertainties facing the economy, we still think those investors who are trying to navigate the highest of fliers — like unprofitable technology stocks — are playing too difficult of a game. Our preference is still with stocks that offer defensive growth. We understand buying defensive growth today means you aren’t catching the bottom, but bottom fishing is often called an expensive hobby for a reason. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
View of Dawn dish soap liquid at Stop & Shop Supermarket.
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The past few days have been volatile for markets: Headlines from China of protests and lockdowns are changing by the hour, while Russia’s war with Ukraine lingers on and the economic picture at home shifts with every new piece of data.
