The bull market continues; markets quickly dusted off the 5% correction in April and soared to new highs. With too much cash on the sidelines, every shallow correction has become a buying opportunity. Blue-chip stocks are one way to play this positive momentum.
From a historical perspective, the markets are in great shape for continued gains. In the first 100 trading days of 2024, the S&P 500 has had about a 10% gain. JPMorgan Wealth Management noted that since 1950, that has meant a stronger second half, with the index closing the year with a 25% average return.
Besides, the economic and earnings data support this positive view. Economic activity has been resilient, buoyed by fiscal programs geared towards infrastructure and bringing back supply chains to the U.S.
Earnings have also surpassed expectations, and analysts project more gains in the second half. Considering this confluence of positive economic and technical factors, the market’s direction will likely be up. These blue-chip stocks will help you capture gains as we hit new highs.
Abbott Laboratories (ABT) This medical device and nutrition maker is a compelling opportunity. At 22 times forward EPS and a 2% dividend yield, it’s a get-rich slowly story. Most Abbot Laboratories (NYSE: ABT ) segments are firing on all cylinders and delivering solid growth.
That said, the diagnostic segment — which benefited from COVID-19-related sales — has been a drag on growth. However, now that it’s lapping these tough comp.
