Stocks continue to make new lows. Here’s how to both safeguard and grow your investment money.

Stocks keep hitting new lows. Here's how to protect your portfolio and generate some returns

The market rise that started in late March 2020 has come to a halt, and Wall Street and Main Street investors alike are taking a more conservative stance. The S&P 500 fell more than 20% below its all-time high on Friday before finishing flat owing to a late-day comeback.

Some market analysts will consider it a bear market, while others will wait until the index closes at that level before deciding. Whether or not the market is in a bear market, the selling has been unrelenting in recent weeks. “When they sell our stocks, we joke that it’s a bad market, but in bear markets, everyone’s stocks are sold. Last week, as well as this week’s Wednesday, had that look “In a message to clients on Friday, Wellington Shields’ Frank Gretz said.

While it may be tough to identify major winners during these times, there are several tactics that might help you reduce your losses and even earn some minor returns. Recession-hit industries Bear markets are often followed by economic recessions, and Wall Street experts and economists are becoming concerned that the United States may be heading in that way.

This week, Goldman Sachs’ top U.S. stock analyst David Kostin warned that a recession would likely result in the S&P 500 falling to about 3,360 points. Despite the fact that many analysts do not predict a recession until 2023, the market may have already begun to price it in. Utilities, energy, consumer staples, and health care, according to Goldman, outperform sectors in the 12 months leading up to recessions.

When the economy enters a downturn, though, that leadership narrows to staples and health care. According to Kostin, Of course, there is a risk that the US economy may not enter a recession, but that high inflation persists. According to Bank of America, oil and commodities companies might increase their lead among outperformers in this instance. Stocks of fortress Healthy dividend yields appear as a pattern when looking at firms with excellent quality ratings in those conservative sectors. Investors tend to gravitate toward the security of regular dividends when inflation is strong and stock prices are erratic. With that in mind, CNBC Pro sought for companies that have performed well in previous weak markets while still yielding a 2% dividend.

Clorox and Campbell Soup are among the consumer staples firms on the list, as is Gilead Sciences, a health-care company. Some of the advantages of income stocks may be seen in ETFs that have excelled this year. Year to date, the Invesco S & P 500 High Dividend Low Volatility ETF (SPHD) is marginally positive.

Kraft Heinz and Verizon are among its biggest holdings, as with oil corporations like Chevron. Low-cost names Even in the case of an economic downturn, given the extent of the sell-off, there may be corporations whose values have plummeted to unsustainable low levels.

CBC Pro searched for firms in the S & P 500 that are selling at a significant discount to their usual price-to-earnings ratios, such as Disney and Advanced Micro Devices. Even after large losses, Wall Street experts are beginning to rally behind several tech firms. Apple is “a compelling brand to buy and ride out the market storm,” according to Wedbush analyst Dan Ives, who also believes the smartphone maker’s downturn in China will not be as terrible as some fear. Meanwhile, Mark Murphy of JPMorgan stated that Salesforce is “too inexpensive to pass up,” despite evidence that corporate software demand may be slowing.

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bear market

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