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Market Crash 2.0: Where to Invest $1,000

Market Crash 2.0: Where to Invest $1,000

Investors have experienced years’ worth of volatility in the past nine months. First, we witnessed the fastest descent into bear-market territory in history as the coronavirus pandemic took hold in March. Then, the market vaulted higher, even reaching brand-new highs in August. But in September, stocks slowed down some, and the S&P 500 dropped by about 4.6%.

Volatility is, of course, part of the investment cycle, and so are bear markets. That means another market crash will happen; it’s just a matter of when. Maybe a second (or third) wave of COVID-19 will be the catalyst; maybe it will be something else entirely. No matter when or why it happens, here are two stocks that will survive the next market crash and continue climbing long after: Guardant Health (NASDAQ: GH) and Abbott Laboratories (NYSE: ABT).

Let’s look closer into why putting $1,000 of your hard-earned cash into either (or both) healthcare stocks would be a great move.

GH Chart

GH data by YCharts

Guardant Health: The future of cancer diagnostics

Guardant Health develops liquid biopsies — tests that allow physicians to look for cancer cells from tumors in blood samples. Why is this method a big deal? One of the main alternative techniques, tissue biopsy, requires direct physical access to the tumor inside a patient’s body. This competing procedure is riskier, more time-consuming (resulting in a delay in treatment), and more expensive. Liquid biopsies can help detect cancer sooner, improve health outcomes, and reduce costs.

Guardant Health generates the bulk of its revenue from Guardant360 and GuardantOMNI, two liquid biopsy products it offers to oncologists and other professionals. The company continues to expand its sales of these products. During the second quarter that ended June 30, its total revenue increased by 23% to $66.3 million. Guardant Health’s precision oncology testing revenue

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Next Coronavirus Market Correction: Where to Invest $5,000

Next Coronavirus Market Correction: Where to Invest $5,000

Luxury jewelry maker Tiffany & Co. has never held a sale in its corporate history. Demand for the company’s premium wares and the iconic little blue box has been enough to maintain high prices — and profit margins — for almost 200 years.

a close up of a newspaper: Next Coronavirus Market Correction: Where to Invest $5,000

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Next Coronavirus Market Correction: Where to Invest $5,000

Similarly, great companies rarely go on sale. But unlike luxury jewelry, their stock prices sometimes fall in concert with the overall market. As traders indiscriminately sell to avoid further losses, they sacrifice ownership stakes in wonderful businesses for the comfort of cash. If you are an investor with a multiyear time horizon, this is the perfect time to buy stock in the most outstanding companies.

a close up of a newspaper: Clips from newspaper headlines about coronavirus, COVID-19, panic, crisis, virus worries, and more, atop a pile of $100 bills

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Clips from newspaper headlines about coronavirus, COVID-19, panic, crisis, virus worries, and more, atop a pile of $100 bills

A good way to identify these resilient businesses is to look for consistent sales growth and strong market position. Companies with these attributes tend to strengthen during weak economic environments; they invest in new products, hire the best people away from competitors, and build stronger relationships with customers. The next time the market has a big drop, and the best companies are being sold along with weaker ones, these three healthcare-related companies should be great bargains.


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1. Intuitive Surgical

Although the pandemic-induced reduction in elective procedures led to a 22% fall in sales in the most recently reported quarter, Intuitive Surgical (NASDAQ: ISRG) has consistently grown revenue and expanded the list of procedures available for its robot-assisted surgeries over the past decade. It’s done this in a time of historic uncertainty in healthcare regulation and rapid consolidation in hospital systems — both issues that would seem likely to make customers balk at spending millions

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