During a Recession

When the economy is in a downturn and headed toward a recession, what can you do to keep your investment dreams alive? Our advice? Don’t stop investing. There are several viable stocks that don’t wildly fluctuate with the economy and are sure to continue to grow even when a recession is on the horizon. Let’s take a look at some of the stocks you can purchase that will continue to grow your wealth even through a recession.

Health 

Even though the economy seems to be losing ground, one industry that continues to thrive is the healthcare industry. No matter the state of affairs, people still get sick and need medication. Investing in healthcare companies and medicine manufacturers is one of the strongest decisions you can make for solid stocks. Some of your options include:

• UnitedHealth Group (NYSE: UNH)
• Pfizer (NYSE: PFE)
• Johnson & Johnson (NYSE: JNJ)
• CVS Health (NYSE: CVS) 
• Walgreens Boots Alliance (NASDAQ: WBA)

Retail

Believe it or not, retail companies are also a smart buy, considering people in a recession still shop, however, they shop smart. They shop at cheaper stores as well as stores that offer items in bulk. If you purchase your stocks with this in mind, you’ll tap into the vast potential of stable retail companies. These retail stocks include:

• Dollar General (NYSE: DG)
• Dollar Tree (NASDAQ: DLTR)
• Costco (NASDAQ: COST)
• Walmart (NYSE: WMT)
• Home Depot (NYSE: HD)

Utilities

Utility companies are also a good bet, as there is always a demand for utilities such as water, sewer, electricity, gas, waste management, and so on. Families might cut corners as far as spending goes, but they still want their lights on at night and a hot shower in the morning. Companies that you might consider investing in would include:

• Waste Management (NYSE: WM)
• American Water Works (NYSE:AWK)
• Brookfield Infrastructure (NYSE:BIPC)(NYSE:BIP)
• NextEra Energy (NYSE:NEE) 
• Williams Company (NYSE:WMB)

Goods

Companies that deal with goods include goods people cannot live without. These staples consist of household products, personal products, and food people prepare at home. Eating out at restaurants is one of the first expenses to be scratched off the budget, so investing in the food industry is a smart move. These stocks include:

• General Mills (NYSE:GIS)
• Kroger (NYSE:KR)
• Tyson Foods (NYSE: TSN)
• Procter & Gamble (NYSE:PG)
• PepsiCo (NASDAQ:PEP)

Diversify

When it comes to investing, holding a diversified portfolio is key. Having a diversified portfolio doesn’t mean you hold a lot of stocks, but that the stocks you do hold represent a cross-section of several different industries, including those that can withstand a recession. In fact, it is highly recommended by investment firms to hold stocks such as these, as they are financially strong. You might look into holding a few blue-chip stocks as well, which are stocks from high-quality companies that continue to do well and hold strong in the stock market year after year.

The threat of a recession doesn’t mean you have to pump the brakes on your investment plans, rather it means you’ll need to change tactics. Take a look at investing in industries people absolutely cannot live without, and you’ll continue to build wealth even in an economic downturn.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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is Expected Within Five Years

Over the next five years, it’s expected that the amount of millionaires worldwide will spike to upwards of forty percent, as reported by the Credit Suisse AG’s Global Wealth Report 2022. This report states that by 2026, the world will have millions of millionaires, about 87.5 million to be exact. But where are they all coming from? Let’s take a look. 

One in a Million

You might like to think the United States is the leader in creating millionaires—but you’d be wrong. The millionaire giant in question is none other than China. 

Despite the downturn in the Chinese economy due to the pandemic and the lockdowns that have permeated the country, the report from Credit Suisse says there should be a quick upswing of certain developing markets once the Chinese economy is on the rebound. The current projection is that private fortunes will grow by at least thirty-six percent, which seems optimistic, all things considering.

For instance, Wall Street plans to delist certain Chinese stocks in 2024, however the rivalry between China and the United States rages on with regards to energy, tech, and telecom industries.

Invest and Take Advantage

If the Chinese economy is fixing to boom once more, there are some ETFs you might consider purchasing. Their current low price makes them all the more attractive, and if you’ve been thinking about it, now’s the time to jump on the bandwagon. Once China begins to bounce back, they’re projected to do so quickly, considering the sheer size of their economy.

CXSE, or the WisdomTree China ex-State-Owned Enterprises Fund, might be an ETF to consider. Since it is not owned by the state, the fund is free to look toward emerging markets in which to invest, which means this ETF is much less risky than others from China. 

EMQQ, or the Emerging Markets Internet & Ecommerce ETF, might bring a fantastic opportunity. Both ecommerce and internet sectors have amazing potential for growth, which means this ETF could be a moneymaker once the Chinese tech industry revives. EMQQ would be much cheaper than similar ETFs out of the U.S. However, it would soon become the frontrunner in the tech sector due to the rapid advancement of China’s rebound overall.

Patience is Key

While ETFs out of China are inexpensive at the moment, don’t expect a fast return. Due to strict laws out of the pandemic, China’s economy will need to recover and that’ll take time. ETFs out of China are a great way to access industries with rapid growth easily without having to trust in any singular Chinese stock. However, with China’s track record in the tech industry as well as ecommerce, betting on these ETFs might just be the best thing you ever did. 

Perhaps one day you’ll look back and be happy you invested in the Chinese market when you had the chance, and count yourself among the world’s newest millionaires.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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What’s the first thing you think of when you hear the term “mutual fund”? Do you picture a group of stuffy people in suits sitting around a long table in a boardroom? What if we told you mutual funds were for everyday people? One of the first funds in Fidelity’s line of zero-expense-ratio mutual funds, FZROX is a great choice for investors. Let’s get the lowdown on Fidelity Mutual Funds to help you with your next investment decision.

What Are Mutual Funds?

Let’s first discuss what exactly a mutual fund is. Mutual funds pool money from many different investors. The money is then used to make purchases on stocks, bonds, and securities. The investors will all share in the profits and losses of the fund. Some of the bigger perks of a mutual fund is their lower costs, lower risks, and diversification.

Typically, mutual funds are classified by their principal investments: bond or fixed income funds, money market funds, stock or equity funds or hybrid funds.

Fidelity Mutual Funds

With $11.8 trillion in assets under management, Fidelity Investments, Inc is one of the largest asset managers in the world. The company was established in 1946. Back in the 1960s, Fidelity began marketing mutual funds to regular, everyday people, making it the first major American finance firm to do so.

Fidelity ZERO Total Market Index Fund (FZROX)

One of the first funds in Fidelity’s line of zero-expense-ratio mutual funds, FZROX is a great choice for investors. Introduced in 2018, FZROX, along with the ZERO International Index Fund has grown to more than $1 billion in assets.

This fund features a 0% expense ratio and no minimum to invest. The fund tracks the market with no expansive growth or loss. It holds steady right in the middle. With steady growth over time, FZROX has the potential to bring an annual return of 9-10%. Risks are fairly low; if there’s a market crash, you can expect a dip in the fund, but no major losses. 

The fund holds over the top 3,000 names in stocks with the largest holdings in big names Apple, Microsoft, Amazon and Tesla. 

FZROX takes its dividends and reinvests them internally to the fund throughout the year. The growth is reflected in the share price. Dividends are typically paid out once a year in December. The only potential downside to investing in this fund is the fact that you can only buy and trade it through the Fidelity platform. Of course, if you already have a Fidelity account, this is no issue for you. If you don’t currently have a Fidelity account, it’s simple to open one.

In Summary

Investing in FZROX will likely bring you a nice return over time with minimal risks. It is essentially a free way to invest and gain traction in the investment world. Fidelity is a veteran company with solid roots and there’s no chance this company is going anywhere any time soon. 

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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CVS Health

For the last few weeks, Financial Joy School has been giving you the lowdown on the best stocks for you to invest in. From first time investors to investment veterans, there’s something out there for everyone. Are you looking for your first stock or your twentieth? Don’t sleep on this one: CVS Health.

A Family Affair

CVS (which stands for Consumer Value Store) was founded in 1963 by brothers Stanley and Sidney Goldstein, along with their partner, Ralph Hoagland. Originally, the store focused on health and beauty products, but within only four years, pharmacies were added. The first stores featuring a pharmacy opened in Rhode Island in 1967. While CVS was sold to Melville Corporation in 1969, by 1996, CVS would find itself a standalone company. At this point, CVS began trading on the New York Stock Exchange under “CVS” with Stanley Goldstein as the company’s first chairman. 

Over several decades, CVS made it a business of acquiring ownership of several drug stores and pharmaceutical companies. They acquired their popular MinuteClinic in 2006 and then merged with Caremark Rx, Inc. in 2007. In 2014, after removing all cigarettes and tobacco products from stores, the company officially changed its corporate name to CVS Health. CVS is now one of the largest pharmacy retail chains in the United States with over 9,000 stores and a presence in each of the fifty states as well as the District of Columbia and Puerto Rico.

A Stable Foundation

Why should you invest in this stock? CVS Health is what’s considered a dividend-paying stock, meaning the company shares its profits and makes payments to its stockholders. Stockholders recently saw a ten percent increase in dividend payouts and there’s sure to be more where that came from. 

The pharmaceutical giant’s future plans make it likely that payout percentages will continue to increase in the years to come. Currently CVS Health holds a growth score of A, meaning it has great potential as a long-term stock. In terms of earnings, the company is expected to remain on track with steady growth, which means you are likely to see a big payday down the line.

The healthcare benefits, pharmacy, and retail segments of the company all play a part in the overall performance. Each of these sectors has seen a steady and significant increase over the past year, helping to drive up the company’s revenue as a whole. 

A Strong Brand

The CVS brand is solid and continues to outperform most competitors. CVS Health has continually changed with the times, making services convenient and reachable for customers. They proudly boast brick and mortar stores as well as online pharmacies and shopping, making themselves accessible to anyone. Though the CVS brand has seen many changes over the years, all the changes have proved to have a positive impact on the company. Perhaps, most importantly, CVS Health is well-established and won’t be disappearing any time soon. 

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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American Express

Financial Joy School is pleased to bring you our choices for the best stocks to invest in, regardless of your knowledge of the stock market. Over the past few weeks, we’ve showcased several solid and reliable stocks you can trust. Today, we propose a stock that’s been around since before the Civil War began: American Express.

Humble Beginnings

American Express, known today as Amex, began all the way back in 1850. The original purpose of Amex was as a freight-forwarding company that ensured customers could have their possessions shipped wherever they needed to go. To put it in today’s terms, they were like a moving company or FedEx, shipping customer’s valuables across the country.

Soon, Amex expanded to include shipping goods between businesses in the 1870s. The 1890s saw traveler’s checks issued by Amex, and believe it or not, World War I gave Amex the chance to shine, by forwarding luggage and cashing cashier’s checks of people stranded by the war.

Evolution of a Brand

By the 1950s, Amex introduced their first credit card, and the rest, as they say, is history. Over the years, there was less demand for their shipping services and more demand for their credit cards. They went global, and by the 1980s, were dedicated to helping small businesses grow through their new program named OPEN: The Small Business Network.

Today, Amex is one of the most trusted names for business credit cards to date, offering rewards, travel perks, even cash back on some purchases. Amex is also a trusted personal credit card as well. The company itself is over 170 years old and still stands upon its sterling reputation.

An Excellent Investment

Considering Amex’s fantastic staying power since 1850, it’s safe to say this company is here to stay long into the future. Everyone has heard of Amex all around the globe and as far as credit cards go, it is one of the most celebrated and established. Amex has learned how to adapt as the years have gone by, and this element is crucial for establishing themselves not only as a rock-solid stock, but one that will last through generations. 

When purchasing stocks, a name like Amex is what you want to look for, one that is firm and respected, and if you can find it, has been around the block a few times. Amex offers both of these perks, which brings their investors peace of mind. These stocks won’t disappear on you, and they’ll only appreciate over time. 

Building generational wealth begins with a company that has built itself over generations. Due to its past success, you know its future success is guaranteed. American Express is just such a company. The longevity of this company means that your children and your children’s children will be enjoying these stocks for years to come. Consider American Express when looking to invest.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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Financial Joy School is overjoyed in recommending some of the best stocks on the market to invest in no matter your investment history. With our choices, you’ll be assured these stocks are solid and not going anywhere. This week, we propose a company that most have heard of but might not have considered purchasing their stock: Tesla.

Inventor, Engineer, and Scientist

No, we’re not talking about Elon Musk, we’re talking about electrical genius Nicola Tesla. Born in the Austrian Empire in 1856, Tesla emigrated to the United States in 1884 and worked for a time at Edison Machine Works before striking out on his own. A brilliant scientist, Tesla invented an induction motor that used alternating current (AC), and developed the Tesla coil which produces electricity arcs that resemble small bolts of lightning. He also invented technology ahead of its time that aided with both AC generation and transmission.

Nearly one hundred years later, a new company seeking to make eco-friendly electric cars decided to name itself after this famous inventor/engineer whose name is synonymous with electricity. Thus, in 2003, Tesla Motors was born.

Tesla Motors becomes Tesla, Inc.

In 2017, Tesla Motors officially changed its name to Tesla, Inc., to better incorporate all this company does in the field of electric power. Nowadays, one cannot help but think of electric cars and Elon Musk being associated with Tesla. But did you know they have poured themselves into clean energy as well?

These days, Tesla, Inc. not only manufactures electric vehicles, but also solar panels, home power storage, batteries for cars, and services such as Powerpack for businesses, Powerwall for private homes, and Solar Roof, which is an entire roof designed to absorb solar power rather than installable solar panels. Tesla, Inc. has dedicated their focus to getting the world off fossil fuels and onto clean, renewable energy through solar and electric power.

A Strong Buy

Tesla, Inc. is considered a “Strong Buy,” having achieved a Zacks Rank #1 rating. This means these stocks have a trend of climbing upward in estimated earnings, which deeply—and positively—affects the stock price, and that is very good news for you. 

Tesla, Inc. as a whole, has been around for about twenty years. Once again, the name “Tesla” is associated with all things electric. They have explored manufacturing sustainable batteries as well as harnessing solar power which makes them a pioneer in clean, electric power. No other electric company, except perhaps General Electric, can touch Tesla when it comes to their dedication to purging the world of fossil fuels. 

A Clean Stock

When it comes to buying stock, it pays to invest in companies with a mission you believe in, Tesla, Inc. is one such company. Not only do they build cars with no emissions, they also innovate creative new ways to harness energy, and they do so cleanly. Their company’s mission aligns with the good of our planet, and that makes Tesla, Inc. not only a fantastic stock to purchase, but a smart one as well for building generational wealth.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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