Concerned About a Selloff? Here’s 68 Things You Can Do

There’s no sugarcoating it—last week was the roughest week on Wall Street in over a year, as the S&P 500 dipped 2.6% and the Dow dropped 3.5%. The sharp turn on Wall Street filled my inbox with questions. What sparked the selloff? Should we be worried? And what can we do about it?

So today I’ll answer these questions as well as give you 68 trade recommendations to help you smooth out any further volatility in your portfolio.

What caused the selloff?

On Thursday, it was announced that Chinese factory activity, as measured by the flash Markit/HSBC Purchasing Managers’ Index, contracted in January for the first time in six months, pointing to a weak start for China’s economy in the New Year.

The index was weighed down by weaker domestic and export demand, coming in at 49.6 in January compared with December’s final 50.5 reading, dropping below the 50 line that separates expansion from contraction and sparking fears that China’s economy may be at a tipping point.

Should we be worried?

I wouldn’t be too concerned about this temporary dip. Despite the market’s knee-jerk reaction, China’s official PMI is almost always higher than HSBC’s PMI and China’s Lunar holiday is notorious for distorting economic statistics. In addition, even though China’s annual GDP growth decelerated very slightly to a 7.7% annual pace in the fourth quarter, down from a 7.8% annual pace in the third quarter, domestic consumption continues to rise in China, which is helping to drive worldwide GDP growth.

What can we do about it?

I was out in the market last week, buying a number of stocks “on sale” for some of my other accounts—and I recommend that you do the same. I advise that you use the opportunity to add premium stocks that have pulled back, and I’ll help you get started.

68 Recommendations Straight Out of Portfolio Grader

Last Week’s Holds, Now Buys

Symbol Company Name Quantitative Grade Fundamental Grade
AAPL Apple B B
BBT BB&T Corporation B C
CHK Chesapeake Energy B C
COL Rockwell Collins B B
DFS Discover Financial B B
ETP Energy Transfer Partners, L.P. B C
FITB Fifth Third Bancorp B B
GD General Dynamics B C
MWE MarkWest Energy Partners, L.P. B D
NEE NextEra Energy B B

Last Week’s Sells, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
AES AES Corporation D C
CLR Continental Resources D B
CPB Campbell Soup C C
DISCK Discovery Communications D C
EXC Exelon D B
GPS Gap Inc. D B
HOT Starwood Hotels & Resorts D B
JNPR Juniper Networks C B
KO Coca-Cola D C
LINTA Liberty Interactive D C
MO Altria Group D B
RAI Reynolds American D B
SJM J. M. Smucker C C
SWN Southwestern Energy C B
VRSK Verisk Analytics D B


Last Week’s Buys, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
ADP Automatic Data Processing C C
ADSK Autodesk C B
AON Aon plc C B
AV Aviva plc C B
BAC Bank of America C B
BIDU Baidu C B
BWA BorgWarner C B
DD E. I. du Pont de Nemours C B
DG Dollar General C B
DLTR Dollar Tree C C
JNJ Johnson & Johnson C C
KSS Kohl’s C C
LVS Las Vegas Sands C B
MFC Manulife Financial C B
MHFI McGraw Hill Financial C B
MJN Mead Johnson C B
PRU Prudential Financial C C
SNDK SanDisk C B
UPS United Parcel Service C C
VLO Valero Energy C B
WHR Whirlpool C B
YNDX Yandex C B

Last Week’s Holds, Now Sells

Symbol Company Name Quantitative Grade Fundamental Grade
ABT Abbott D B
AGN Allergan D B
APD Air Products and Chemicals D C
EL Estee Lauder D C
GE General Electric D C
HAL Halliburton D C
ISRG Intuitive Surgical F C
ITW Illinois Tool Works D C
JPM JPMorgan D C
LB L Brands D C
PH Parker-Hannifin D C
RCL Royal Caribbean Cruises D C
ROST Ross Stores D C
SDRL Seadrill F B
SLB Schlumberger NV D B
SLF Sun Life Financial D C
SWK Stanley Black & Decker D C

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