The start of 2022 saw a decline in the stock market. For seasoned investors, this was not unexpected, as corrections in the market are commonplace from January through to March.
- The S&P fell by 14.5%.
- The Nasdaq 100 fell by 22%.
- The Dow Jones 30 fell by 13%.
It is a time when most will panic, getting caught up in the usual rhetoric of a market crash. In comparison, those with a solid investment process will remain calm and wait for the markets to find support, knowing that these corrections are more likely to be just that, a temporary decline before the bulls come in strong and push the price back up.
Those in tune with the market will also understand that the indices are an average of a group of stocks. Through a sound scanning and analysis process, one can identify stocks that outperform the indices even during market declines.
Investing in these stocks will not only balance out your portfolio when other stocks are heading south during a correction, but will also have a significant impact when the market as a whole corrects and moves in your favor.
Regular readers of my blogs will be familiar with the following criteria I look for when investing in a stock:
- Printing new all-time highs
- Volume ideally over 1 million
- A good history of performance
- Breaking out from consolidation
The following stocks met these criteria in December/January when the indices started declining and have moved over 20% since, and this is while the indices continue to recover.
AbbVie ABBV has moved 37%.
AmerisourceBergen Corp. ABC has moved 28%.
Archer-Daniels-Midland Co ADM has moved 37%.
Amphastar Pharmaceuticals Inc AMPH has moved 58%.
Berkshire Hathaway Inc. Class B (NYSE: BRK-B) has moved 20%.
CF Industries Holdings, Inc. CF has moved 53%.
Chevron Corporation CVX has moved 24%.
Hershey Co HSY has moved 22%.
Kroger Co KR has moved 25%.
McKesson Corporation MCK has moved 32%.
These stocks are all great examples of why, when it comes to investing and managing a portfolio, you want to ignore the noise and focus on the price of the stock for optimum results.
It is less work, less stressful and the profit is life-changing in the long run.
It is also the perfect way to ensure you have no regrets. In the long term, you will have a very healthy retirement pot — the ultimate goal for many!
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