Listen up, folks. The tech sector is in a free fall! Nvidia (NVDA) dropped like a rock this week, sending shockwaves through the entire market. The Nasdaq is getting absolutely hammered – down over 3% on Tuesday alone! Is this the start of the long-awaited market crash?
You’ll find plenty of so-called experts on TV claiming it is. They’ll say it’s time to sell everything and hide your money under your mattress. They’ll warn of economic collapse and tell you the world is ending. Don’t listen to them!
This is the time to be greedy.
Savvy investors make money when the market is gripped by fear. They see opportunity where others see only disaster. They buy when everyone else is selling.
Right now, the smart money is rotating out of risky tech stocks and into the strong, steady, dividend-paying companies that will hold up during the coming storm.
So, are you ready to be smart?
1. Costco (COST): The All-Weather Winner
Costco is the ultimate “all-weather” stock. The company has a rock-solid business model, a loyal customer base, and a history of consistent growth. When times are good, they thrive. And when times get tough, they thrive even more!
As my colleague Chris Johnson at MoneyMorning put it: “Costco has been one of the better executors in the retail industry for the last two years as their bulk pricing has allowed consumers one means to fight inflation.”
Johnson sees Costco breaking above $900 and heading to $1,000 before year-end. That represents a potential 12% gain from current levels!
2. Darden Restaurants (DRI): Delicious Dividends
Darden Restaurants, the company behind Olive Garden, LongHorn Steakhouse, and other popular chains, is another smart play on a strengthening consumer. As inflation cools and people feel more confident about their finances, they’ll be eager to indulge in a nice, affordable meal out. And few companies are better positioned to benefit from that trend than Darden.
This is another one of Johnson’s top picks. He sees Darden breaking above $160 and heading toward $175. That’s a potential gain of 10% – plus, you’ll be collecting a hefty 3.32% dividend yield.
3. J.M. Smucker (SJM): The Breakfast of Champions
Forget the tech hype! Consumer staples are where it’s at. These are the companies that make the products you need every single day: food, beverages, household goods, and personal care items.
As CNBC reported, the consumer staples sector outperformed all other sectors on Tuesday, suggesting a strong move towards defensive positions.
Within that sector, J.M. Smucker, the maker of Jif peanut butter, Folgers coffee, and other popular brands, stands to benefit from the coming market turmoil. As investors flee toward safer havens, J.M. Smucker could be a major beneficiary.
4. Campbell Soup (CPB): Soup Up Your Portfolio
Campbell Soup is another classic consumer staples company poised to withstand the market storm. As CNBC noted, along with J.M. Smucker, Campbell Soup also was a strong performer in the consumer staples sector on Tuesday. These “boring” companies often shine brightest when the rest of the market is struggling.
5. Southern Company (SO) & Duke Energy (DUK): Utilities for the WIN
The utilities sector is another defensive play that’s attracting a lot of interest right now. These companies provide essential services – electricity, natural gas, water – that people need no matter what the economy is doing.
Again, as CNBC highlighted in their reporting, Southern Company and Duke Energy are showing positive movement, reinforcing the idea that investors are moving away from risky, unprofitable growth companies towards tried and true, dividend-paying utilities.
There you have it: Five stocks with the potential to benefit as the market landscape shifts and investors look for stability.
Don’t get caught on the wrong side of this rotation. Buy these stocks NOW.
And check back tomorrow, when we’ll uncover an “under the radar” AI stock that could double your money.
