On today’s episode of Full Court Finance here at Zacks, Ben Rains takes a look at the coronavirus market volatility and what investors might want to do as stocks continue their recent climb. The episode then dives into three diverse stocks that are part of the broader technology space that longer-term investors might want to buy during the volatility and economic uncertainty.
The S&P 500 is about to end a month of historic volatility, where the broad-based index moved up or down 5.2% on average every day in March. This would come in way above the previous record of 3.9% all the way back in November 1929, according to the Wall Street Journal.
The market volatility looks poised to remain and the economy is likely to get worse after President Trump on Sunday said that the White House was extending its social-distancing guidelines through the end of April. But the roughly $2 trillion stimulus package last week and the Fed’s moves should curb some of the economic fallout.
That said, the last several trading days highlight why longer-term investors should try to remain at least somewhat exposed to the market even during rough times because you might miss out on big bounces, if you don’t.
The first stock we look at today is CrowdStrike (CRWD - Free Report) . The cloud-based cybersecurity firm went public in 2019 and it wowed Wall Street with its Q4 fiscal 2020 results on March 19. The stock has soared since then, but CRWD still rests well below its highs and its growth outlook is strong. Plus, CrowdStrike’s business is somewhat immune to the coronavirus economy.
Meanwhile, Verizon (VZ - Free Report) might be worth considering as a long-term investment in a telecom firm that is set to compete against rival AT&T (T - Free Report) for years to come. And its strong dividend provides some much-needed income amid the current market conditions.
We then close with a look at Microsoft (MSFT - Free Report) . The tech powerhouse is more diverse than ever and its cloud business challenges Amazon (AMZN - Free Report) . Plus, it is not as exposed to consumer spending as the likes of Apple (AAPL - Free Report) .
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