The stock market could might have bottomed in June, as so far July has been tame while trending higher.
Today, the stock market was flat with the S&P 500 -0.1% to end the trading session at 3899 while the NASDAQ was +0.1% to close at 11635.
For the first time in a long time, stocks are set up to break out. Leaders look like they are doming from the Healthcare sector. UnitedHealth (UNH) and Merck (MRK) are two conservative growth stocks that are around their All-Time highs.
Tweet of the Day
In the last 3 cycles, 10-yr yield peaks have marked the equity market bottoms. $SPY $QQQ $TLT $NYA pic.twitter.com/3VXeedCNtJ
— Seth Golden (@SethCL) July 7, 2022
Chart of the Day
I just added Merck (MRK) to the Conservative Growth Portfolio. This one-year chart is from July 4 when the stock was $92.
Merck may just be what the stock doctor ordered during this Bear Market. In fact, this stock might become a fresh market leader if we are in the beginning of a Bull Market.
This pharmaceutical company has:
- Delivered 5 straight years of record profits.
- The stock has been trending higher for a decade, growing at a rate of 8% a year.
- Estimates are for 12% (profit) growth long-term.
- MRK stock has a juicy 3% dividend yield, which helps keep MRK from free-falling during this Bear Market.
- And the valuation is right, as the P/E is only 13.
