These cycles last a while,' says Ryan Detrick, chief market strategist at money management firm Carson Group. Generous and growing dividends are a hallmark of high quality and are likely to make up a much bigger portion of total returns than they have recently, says Caroline Randall, a portfolio manager at mutual fund company Capital Group.Īnd now may be a good time to tilt toward value-oriented companies and small-cap stocks, both longtime underperformers that are showing signs of new life.

'Instead, emphasize quality with a focus on earnings consistency and good profitability.' 'Investors should avoid volatile names and be cautious on both deep-value and unprofitable growth companies,' Koesterich says. Given the uncertain, sometimes roiling backdrop for stocks, where should investors look when seeking out the best stocks to buy now? A popular piece of advice among Wall Street strategists now is to resist the bargain-basement appeal of the most beaten-up stocks and focus instead on high-quality shares. 'Today, none of those conditions are in place.' How do I find the best stocks to buy? 'History tells us that markets don't find a bottom until investors can see Federal Reserve rate cuts or a trough in economic activity on the horizon, or when valuations are so low that they price in a bear-case scenario,' says Mark Haefele, chief investment officer at UBS Global Wealth Management.

As for a potential recession, we have the odds of one starting later this year at 50-50.įor stocks, the turn from tighter monetary policy to easing will be a compelling all-clear signal – as will rock bottom valuations in prices.

Very cheap stocks to buy now