As recession worries fade, analysts are predicting volatility in the stock market for the rest of 2024. While Morningstar and JP Morgan expect uncertainty, David Kostin of Goldman Sachs believes that the S&P 500 has reached its growth potential for the year. A UBS report also agrees with this outlook but highlights factors that could potentially drive the S&P 500 to 5,500 by the end of the year, including continued earnings growth in tech stocks and falling interest rates.
One key factor that could influence the market is the actions of the Federal Reserve regarding interest rates. While rate reductions may not happen until September, this uncertainty leaves investors with a sense of unease as summer approaches. Historically, stock market returns tend to disappoint during the summer months, adding to the caution surrounding investment decisions.
Given the current market outlook, Forbes has compiled a list of defensive stocks to consider buying in June. These stocks have attractive valuations and competitive advantages that can help lower downside risks during turbulent times. These recommendations are based on thorough research and analysis to provide investors with potential options for their portfolios.
Forbes has identified six value stocks that are exchange-traded and available for purchase in U.S.-based brokerage accounts. These stocks, which include companies like Alphabet, Wells Fargo, Comcast, Charles Schwab, Nike, and Estee Lauder, have solid fundamentals and reasonable valuation metrics. They also offer the potential for growth and protection against market downturns, making them attractive options for investors looking to navigate the current market conditions.
Alphabet, for example, dominates the search engine market and continues to invest in innovation and acquisitions to drive growth beyond its core business. Wells Fargo, despite a history of scandals, has a loyal customer base and stands to benefit from regulatory actions in the future. Additionally, companies like Comcast, Charles Schwab, Nike, and Estee Lauder have their unique strengths and opportunities for growth in their respective industries.
Overall, these value stocks offer investors a defensive strategy as the market faces uncertainties in the coming months. With a focus on companies with competitive advantages, reasonable valuations, and positive analyst outlooks, investors can position themselves to weather potential market volatility and capitalize on growth opportunities in 2024.
