Veteran Investor’s Best Stocks To Trade During This Bear Market Rally‍

This year has been a wild journey for the stock markets. Major U.S. indices experienced a weaker finish to February after a high start, but have had a good start to March.

‍

Amid the turbulence, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all stay in positive territory — but market observers are split on whether this is the beginning of a fresh bull market or just another bear market rebound.

‍

The latter group is firmly held by Michael Landsberg, partner and chief investment officer at Landsberg Bennett Private Wealth Management.

‍

"Everything is going as planned. These bear market movements have been in action since last summer. We feel the road is still down, but there will continuing to be these extremely strong short-term surges to the upside signaling otherwise," he wrote in notes to Trade Algo.

‍

According to Landsberg, the market still has a number of vulnerabilities. He forecasts that the Federal Reserve will increase interest rates by an additional 75 to 100 basis points, "in essence pushing us to a deep recession," and that earnings will also slow down during the coming quarters.

‍

What is trading

In light of all of this, Landsberg offers the following investment guidance: "It is not time to widely put money to good use. We believe there is more suffering yet to come.

‍

He cited various chances still available in the market and said that moving forward, patience and cautious individual stock selection are crucial.

‍

For instance, Landsberg claims that the short-duration fixed income segment of the market is currently "promising".

‍

"Looking at yields, you can obtain treasuries for north of 5% in the one- to three-year range. You receive 5.5% from premium corporations. Thus, in order to be able to defend yourself, I believe you need to invest some money in those regions. On the other hand, the wide end of the curve is indicating me there is no room for development," he said last week on "Street Signs Asia" on Trade Algo.

‍

In the equity market, he favors NextEra Energy, UnitedHealth, and pharmaceutical company Eli Lilly as they are all "long-term names that give us excellent entry prices," according to Landsberg.

‍

His short bets in Invesco QQQ Trust, an exchange-traded product that follows the Nasdaq 100, make up his largest stock investment. As we approach the following two quarters of results, "we continue to favor that position," he said.

‍

"Profitless tech" is one industry that Landsberg is staying away from since he thinks earnings will continue to slow down in that industry.

‍

"Some of these companies that have declined are down by 30 or 40%, but they are still up by over 100% from what they were worth only a few years ago, and their companies or profitability haven't really altered at all. These are the identities you need to avoid, he advised.