- Many stocks are in a bubble and extremely overvalued.
- While it seems easy to decide in which stocks not to invest, it is much more difficult to find good picks in this market driven by irrational exuberance.
- Finding recession-proof companies is a good starting point, but the stocks also have to trade at reasonable valuation metrics.
- CVS Health, General Mills, Bayer AG or Novo Nordisk seem to be good picks and are also either fairly valued or even undervalued.
- Johnson & Johnson, Procter & Gamble, and McDonald's are good picks during a recession, but the higher valuations make setbacks more likely.
For further details see:
In This Overheated Market, It's Not If But When. Here's How To Prepare