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Best Bargain Investments Today

The coronavirus pandemic has thrown the economy and the markets into a tailspin. The decade-long bull market collapsed and, despite a partial recovery, is still pretty grim. No one can say for certain when and if the pandemic will ease up, when there might be a vaccine, or if there will ever be an effective cure. With many fearing a ten year recession or worse we have arrived at a metaphorical equivalent to Baron Rothschild’s “blood in the streets” reason for the best time to invest. If this is the case and we are bottoming out, what are the best bargains today to ensure the vitality of your portfolio for years to come?

Best Bargain Investments Today

The ideal investment in times such as these is a stock that has virtually collapsed but a company with sound intrinsic stock value. In other words, we are looking for companies whose fortunes seem grime to most investors but which have a strong margin of safety and are likely to keep making money through this crisis and surge to huge profits in the future. What are some examples?

The Motley Fool suggests three possibilities of stocks to buy on sale. These are H&R Block, Capital One Financial, and United Airlines.

Hundreds of individual stocks are still marked down 30% (or more) off the prices they fetched at the beginning of this year. The “sale,” in fact, is far from over. And here are three top stocks you can still buy on sale today.

H&R Block is down about 30% this year and has a business that should not be adversely affected by the pandemic or recession over the long term. They seem to fit our formula for stocks that have been somewhat unfairly discounted in this market and which will likely survive and prosper.

Capital One Financial is down 40% for the year but some of the “bad news” has to do with their taking a $5 billion accounting write off for debts they believe will not be paid. This sort of solid preparation for the future is a good sign for things to come instead of a devastating blow. Their credit card operations are likely to do well in a world where social distancing will still be the norm for some time to come.

United Airlines has taken the biggest hit with a 75% loss in stock price this year. These folks may be the ones most strongly affected by how the pandemic changes the economy. With evidence now showing that the coronavirus hangs in the air for as long as 8 minutes in enclosed spaces, such as airplane cabins, restrictions on air travel and hesitancy of folks to fly will likely continue for some time. On the other hand, there will be a complete housecleaning of the airline industry as this crisis plays out. Someone will survive and betting a little of your portfolio on United may not be such a bad idea.

Kiplinger looks at energy stocks to “ride out the crisis” and for long term investment opportunities. As we noted last month, this may be a great opportunity to buy energy stocks for the long term. Most these are greatly depressed in price and the world will still need energy when the virus recedes. The key will be picking the survivors from currently depressed energy stocks.

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