Should I keep investing in the stock market?

Should I keep investing in the stock market?

This is a question I got the other day from a reader who said he was disillusioned with the way things are going.  Specifically, how the market is reacting to Trump’s trade war.

While the current trade war is absolutely the root cause of this latest market meltdown, this isn’t the first time we’ve had to deal with this kind of economic uncertainty. 

Prior to this, we watched the market tumble as a result of the COVID-19 crisis. Before that, was the great recession of 2008.  And before that, well, there’s literally been dozens of other market crashes since we started keeping tabs.

And every single time we see a market crash, we inevitably see a market rebound.  It’s just how it works. And while there’s no way to tell how long this latest market meltdown will last, there’s no doubt that there will be an opportunity to make loads of cash once all this is over.  The secret, of course, is to find the stocks that are most likely to come back strong when the rebound does happen.

Should I keep investing in the stock market?  You better believe it!

Typically, there are three segments that are safe bets when it comes to picking up stocks on the cheap after a market crash:

• Utilities
• Consumer Staples
• Healthcare

Looking at utilities, you want to stick with the utilities that have large cash positions, limited debt, a well-diversified portfolio of power sources, and when possible, a generous dividend.  Some of my favorites here include:

• NextEra Energy (NYSE: NEE) — Pays a 3.3% dividend
• Clearway Energy (NYSE: CWEN) — Pays a 6.1% dividend
• Eversource Energy (NYSE: ES) — Pays a 5.1% dividend

On the Consumer Staples side, we just stick with the biggest and strongest players in the space:

• Walmart (NYSE: WMT)
• Amazon (NASDAQ: AMZN)
• Costco (NASDAQ: COST)

And when it comes to healthcare, we know that these stocks tend to come back strong after a market meltdown, too.  I’ve actually opined on this a few times in previous issues, pointing out my experience with United Healthcare (NYSE:UNH).

During the 2008 recession, UNH lost half its value, falling from around $60 a share to $15 a share.  That’s when the smart money started buying.  Last year, UNH was trading in excess of $630 a share. 

That’s a gain of around 4,100%!

Now UNH isn’t trading at such a massive discount today.  Although based on current levels, it is trading at a slight discount of around 9%.  I don’t believe this correction is even close to over yet, though.  But when the market does begin to stabilize, UNH is a pretty safe bet.

Worst case scenario, if the market continues to crash, UNH could retest around $470.  

Of course, given the uncerrtainty in the market today, I’m mostly sticking with income opportunities that pay me every month — regardless of whether or not the market is tanking or soaring.  Like these AI equity checks, for instance.

If you’re unfamiliar, AI equity checks allow you to earn regular income from 5 different AI companies.  And they continue to pay out these equity checks regardless of how the broader markets are moving.

Combined, these checks are worth more than $41,000 a year.  And I don’t know anyone who wouldn’t want to have an extra $41k coming in every year. Especially in today’s market!

The next AI equity check actually comes out in just a few weeks, too. So if you want to start collecting yours right away, check out this detailed report that will show you exactly how to do it.