The S&P 500 index down more than 20% for the year is an opportunity to position your long-term portfolio for remarkable profits, says the Chief Investment Officer of Pivotal Advisors.
Reason to stay in the market right now
Tiffany McGhee quoted historical data to explain why now is an opportunistic time for the long-term investors to hold the stocks they own or pick a few new ones. On CNBC’s “Worldwide Exchange”, she said:
If you had $10,000 investment from Dec 31st, 2006 to Dec 31st, 2021 – you’d have $45,682 right now. But if you took your money out of the market, and you missed only ten of the best trading days, you’d have $20,928; less than half.
McGhee, therefore, recommends that investors give up on the attempts of “timing the market” and focus on “time in the market”.
McGhee is constructive on these two names
Tiffany McGhee is interested in owning companies with strong balance sheets that are in the “green” for the year. Two of the names that meet her criteria are Pioneer Natural Resources Co (NYSE: PXD) and AbbVie Inc (NYSE: ABBV).
PXD is an energy company with an estimated dividend for this year of 9.8%. That’s a lot of yield you can pick up and it’s up 59% YTD. AbbVie is a healthcare company up 5.0% year-to-date with an estimated dividend for 2022 of 3.9%.
Both of her picks about a month ago reported solid results for their fiscal first quarter. SPX is down 3.0% today after the CPI print for May came in worse-than-expected on Friday.
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