Making Money During a Bear Market: 5 Stocks I’m buying now

Stocks & ETF’s I’m Buying During The Market Crash of 2020

As you all know, the stock market has been hit hard by the corona virus, and many have been wondering, “Why is the stock market crashing?”

Why is the stock market crashing?

1) The stock market was well overdue for a correction. People have been seeing company evaluation rise and rise, and unfortunately, many were under the impression that it would go on indefinitely. That is not the case, the market has cycles of bull and bear markets. Bull markets typically lasts about 10 years, and are then followed by a bear market that can last a few months, up to a few years. It was just due to happen.

2) Coronavirus: Due to China and other countries essentially shutting down, that has caused a huge disruption in production lines. Many events are being cancelled, and this is causing a lot of fear and uncertainty. People are freaking out and selling off their stocks thinking the economy is going to tank, which in turn, causes it to tank.

This will not last forever.

No one knows when the next bull market will begin, but one thing is certain, there will be another one. Right now, like back in 2008-2009, is the best time to be buying stocks while the prices are low. Prices have gone down to the levels they were back when Donald Trump was elected. The Coronavirus has presented an economic time machine in which you can go back and buy those stock you wanted to own before they became so expensive. Plus, with companies like Webull and Robinhood, the barrier to entry is nonexistent. Both of these companies allow you to trade commission free, and will provide you with some free stocks for joining if you using my links: (Join Webull or Join Robinhood). I personally use both. I use webull for day trading and buy/selling options because it is more reliable, and I use Robinhood to buy and hold stocks long term because they support fractional shares, allowing you to invest with as little as $1, and they support dividend reinvesting.

Disclaimer: I am not a/your financial advisor. There is risk in investing, and I will not be responsible for any loses incurred due to your investing strategies. I’m just sharing my opinions and the stocks I’m personally heavily adding to my portfolio during this economic downturn.

My top 5 picks in no particular order:

Dollar General: (DG)

Dollar General is a company operating in the retail sector. They target lower income households with low, affordable prices, and have been steadily increasing their revenue in the last 7 years. Plus, they are still growing, building new stores and distribution centers, remodeling, and relocating older stores. During times of economic hardship, many will turn to stores in the discount retail sector for their daily needs to save some money. Prior to this crash, DG peaked at $166 per share and is now trading at $145 per share. This is a big discount, and I’m expecting DG shares to rise much higher in the next few years.

Direxion Daily S&P 500 Bull 3X Shares: (SPXL)

SPXL is a 3X weighted ETF tracking the S&P 500. Meaning, a 1% move in the S&P 500 yields a 3% move in the price of this ETF. As the markets begin to rise, I expect a healthy return on this investment in the next few years. They also offer a dividend yield of 2.07. It’s, not the highest, but it’s definitely a healthy portion in conjunction with the massive rise in price I expect when the next bull market comes.

Delta: (DAL)

Delta Airlines, a big player in the travel industry, has been hit hard by this pandemic along side the other airlines, cruise, and hotel companies. Why am I picking Delta Airlines? Well, prior to the outbreak, all of the other airlines, were also hit by the downing of Boeing’s 737 Max. Delta was the only airline that did not fly the 737 and were not affected. So, while other airlines are also dealing with that. Once the travel restrictions are lifted, it’s smooth sailing (or flying) for Delta. They also offer a nice dividend yield of 4.78, and their P/E ratio is sitting at 4.62 as of March 14. Buying Delta right now is a steal. Warren Buffet himself has recently purchased a large number of shares, bring Berkshire Hathaway’s owner of Delta to 11.1% (71.9 million shares).

Energy Transfer: (ET)

Energy Transfer is a company that provides natural gas pipeline transportation and transmission services. This stock recently lost 50% of its stock price, but I expect them to recover and do well in the future. They have a healthy balance sheet to support them through this economic downturn. As of today, March 14, their P/E ratio sits at 4.63, and they offer a 19.37 dividend yield.

PowerShares S&P 500 High Dividend Low Volatility ETF: (SPHD)

SPHD is an ETF very similar to SPXL; however, SPHD is weighted 1X. Meaning, a 1% move in the S&P 500 yields a 1% move in the price of this ETF. Unlike SPXL, SPHD provides a dividend yield of 6.04, as of March 14. While owning SPXL will provide a much more elevated price in the future, SPHD will provide a much greater dividend income during and after the economic downturn.

While I'll be capitalizing on many other opportunities in the stock market, these are the top 5 stocks I'm going to be heavily purchasing during the stock market crash of 2020. Please comment and give your feedback. Also, please share some of the moves you're going to be making to grow your wealth.

Let's make millions.