"Not again" is the sentiment I’m hearing from investors today. While yesterday’s rebound finally propelled the S&P 500 back into the black for 2015, today’s pullback threatened to put the benchmark index back into the red. Last week, I covered what has been causing the market to slosh around, and from what I can see, it’s much of the same this week.
I know it can be worrisome (and even difficult) to experience a market day like today. If you’re feeling nervous, the best thing you can do right now is sit tight in your stocks. This is not the time to make a knee-jerk reaction, like selling out of your positions. That’s the fastest way to ensure you lose. Instead, here’s what you can do:
If you subscribe to any of my newsletters, you’re already on the right track. I test and retest all of my formulas and data daily in order to recommend only the top companies in anticipation that the market would begin to narrow and have emotional swings just like we experienced today. I consider my Buy List stocks to be the best on the market, whether you’re looking to invest in blue chips, up-and-comers, or emerging market plays. If you’re not currently a subscriber or are invested in a stock that’s not on any of my Buy Lists, not to worry. My free Portfolio Grader stock screening tool rates some 5,000 stocks by fundamental health and quantitative strength and is a great resource during times of uncertainty.
So if you’re feeling nervous, run all of your positions through Portfolio Grader and take note of their letter grades. If one is an A-, B-, or C-rated stock, you should be in good shape to continue holding it. If it is a D- or F-rated stock, you should consider selling that position into strength. Like I said, I never advocate selling in a panic, but you can wait for the market to bounce back before taking profits.
If you’re more risk tolerant, today’s drop is a buying opportunity for strong domestic stocks. So I’m going to go out there and take this opportunity to pick up premium stocks on the cheap and I advise you do the same. To get you started, here are 13 of the top-rated Portfolio Grader stocks that pulled back today:
|Ticker||Company||Quantitative Grade||Fundamental Grade||Total Grade|
|CCL||Carnival Corporation||B||C||B (Buy)|
|CVS||CVS Health Corporation||A||C||A (Strong Buy)|
|DD||E. I. du Pont de Nemours and Company||B||B||B (Buy)|
|EA||Electronic Arts Inc.||A||A||A (Strong Buy)|
|GLW||Corning Incorporated||B||B||B (Buy)|
|KR||Kroger Co.||A||B||A (Strong Buy)|
|MAR||Marriott International Inc.||A||B||A (Strong Buy)|
|MDT||Medtronic Plc||A||B||B (Buy)|
|MMM||3M Company||B||C||B (Buy)|
|MO||Altria Group||A||B||A (Strong Buy)|
|RAI||Reynolds American Inc.||A||C||A (Strong Buy)|
|RCL||Royal Caribbean Cruises Ltd.||A||C||B (Buy)|
|STZ||Constellation Brands Inc.||A||C||B (Buy)|