Monday, December 10th, 2018

End of Bull Market Stocks to Buy


September is upon us. It is historically the worst month for stocks. The market is also overbought and perhaps set for a correction no matter which month it is. What are some end of bull market stocks to buy? CNBC writes about stocks to consider when a bull market nears its end.

Growth stocks are likely to outperform even as the bull market nears an end, according to one Wall Street firm.

Credit Suisse cited how equities are already trading 34 percent above the previous inflation-adjusted market peak. The average post-war bull market typically gains 32 percent from the previous bull market’s high before failing.

Growth stocks tend to do well near the end of bull markets because “earnings breadth narrows (margins fall as labor gets pricing power) and thus the market migrates to the few areas where earnings and margins are still able to grow.”

Their suggested growth stocks are Expedia, VISA, Home Depot, Carmax and Intuit.

A Busy Month Ahead

The stock market is overpriced and has gone 10 months without a correction of more than 3%. Considering that every year for more than two decades that market has had a yearly 10% correction such an event is overdue. But there is more to consider today. Business Insider writes that the market could act unexpectedly.

The market could be unsettled by a slew of geopolitical events. In the US, Congress must make key decisions on the debt ceiling and government funding, among others. Central banks in the US, Japan, and Eurozone all meet this month. North Korea continues to threaten the US and its neighbors with nuclear war.

Raising the national debt ceiling is always a chore for the US congress but now there are the expenses of hurricane Harvey in Texas and Louisiana to contend with and hurricane Irma bearing down on Florida. Unless congress grows up and works in a bipartisan manner there will a bunch of political and economic factors that could exacerbate an otherwise normal market correction. Growth stocks are certainly an option but consumer stocks also tend to prosper when the market corrects. These companies don’t necessarily make any more money but they are safe havens in a down market because they don’t make any less money either. As investors leave other stocks and buy consumer stocks they drive prices up. As an example, our sister site, wrote about investing in beer.

Whether you drink beer or not, investing in beer can be quite profitable. In looking at the different types of stock that do well during recessions and profit during recoveries large brewers typically are on the list. Whether your beer of choice is made by Anheuser-Busch or Inbev, Molson Coors or Carlsberg these companies have the capacity to make money year in and year out.

When economic times get tough folks still enjoy their beer, use chlorine bleach, buy laundry soap use toothpaste. End of bull market stocks to buy include consumer goods. Buy calls or buy the stocks before the correction hits.

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