Many economists expect dismal first-quarter growth
. Republican presidential hopeful Donald Trump
predicts a “massive recession” looms for the U.S.
So common sense and old-fashioned logic would lead you believe that there just aren’t any safe stocks in which to invest.
Not so, advises Zacks Equity Research.
“You can find companies with strong fundamentals and future prospects. Another key factor that one should consider is the comprehensive performance of the industry to which a company belongs,” Zacks
“In fact, studies have divulged that an average stock in a strong industry is likely to perform better than an exceptional stock within an industry that is out of favor with investors. Therefore, the combination of top performing industries and stocks, which are expected to shine this earnings season and beyond, will surely strengthen your investment portfolio.”
Using their own formula and drawing their own conclusions, Zacks recommends 3 stocks in these strong industries:
- The Goodyear Tire & Rubber Company (GT): Goodyear, one of the world’s largest tire manufacturing companies and a star in the Auto-Tires-Trucks industry, “is expected to benefit from lower raw material costs, strong economic trends in North America and continued cost savings.”
- Thor Industries Inc. (THO): Thor is in the Construction industry and designs, manufactures and sells a range of recreational vehicles (RV), and related parts and accessories. “With continued improvement in consumer confidence, availability of retail and wholesale credit and low interest rates, this stock is expected to witness a rise in RV sales.”
- Tyson Foods Inc. (TSN): Tyson, in the Consumer Staples industry, produces, distributes and markets chicken, beef, pork and other prepared foods. Zacks anticipates earnings per share in the range of $3.85 to $3.95 for 2016.
To be sure, there are other viable simple investment strategies as well.
CNBC's Jeff Cox, co-author of "The 30-Minute Millionaire" is sharing the tips investors need to know to profit from the market by spending just a half hour a week on their portfolios.
“This is not a get-rich-quick scheme,” he explained to CNBC. “This is a get-rich-smart scheme.”
"The 30-Minute Millionaire," co-authored by CNBC.com Finance Editor Cox and his writing partner Peter Tanous, is a blueprint for a road ahead that looks very different than the one traveled since the bull market began in 2009.
Cox and Tanous, chairman of Lynx Investment Advisory, see a slow-growth world in which investors need to shed short-term thinking and use passive strategies to deliver consistent returns.
Cox said the goal is to avoid having retail investors avoid the hassle, danger and guesswork of picking individual stocks. “Leave stock picking to the smart people, to the pros,” he explained.
“My biggest concern with watching the market over the last seven years or so has been the ‘short-termism’ of investors,” Cox explained. He said most small investors “react to events too easily and to things that don’t matter to their long-term goals.”
Cox doesn’t discourage investors from doing their homework or obtaining information on stocks, but then suggests turn to ETFs or index funds as opposed to picking individual stocks. “You should know your investments completely,” Cox said. “Get the information, stay informed, stay on top of things,” he said. “Keep your perspective in the long term,” he said.
(Newsmax wire services contributed to this report).
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