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April 4, 2020, 10:33 a.m. EDT

Ready to buy back into this market? If so, forget about Apple and grab these stocks instead, strategist says

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By Shawn Langlois, MarketWatch


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‘The market is utterly underestimating how much of a shock the coronavirus is going to be to the economy. And I think for the next 12 months, the U.S. consumer is only going to spend his money or her money on [nondiscretionary] goods. So, within that basket, I think you have to let Apple go.’

That is Boris Schlossberg of BK Asset Management, explaining to CNBC why Apple /zigman2/quotes/202934861/composite AAPL -0.10%  has no place in an investor’s portfolio amid the coronavirus pandemic. “Anything that is discretionary I think will be absolutely not spent a penny on for at least a year,” he added.

Instead, he said investors should take a look at adding companies poised to benefit in the coming months, such as Procter & Gamble /zigman2/quotes/202894679/composite PG -0.12% and Johnson & Johnson /zigman2/quotes/201724570/composite JNJ +1.21% .

Why P&G? Well, Jefferies just upgraded the Charmin-maker, hailing the company as “among the best in staples to weather near-term macro headwinds.”

And as for Johnson & Johnson, the stock is gaining ground after the company said it had identified a lead candidate in its efforts to develop a COVID-19 vaccine. J&J said it plans to begin Phase 1 clinical trials of the vaccine candidate in humans in September, and the investigational vaccine may be ready for emergency use authorization from the FDA by early 2021.

Read: These 16 companies are working on coronavirus treatments or vaccines

Schlossberg also said he’d pick PepsiCo /zigman2/quotes/208744353/composite PEP -0.56%  over Disney /zigman2/quotes/203410047/composite DIS +0.47% and, perhaps more obviously, over Royal Caribbean /zigman2/quotes/204169771/composite RC -4.86% , for the same reasons.

Watch the full interview:

Apple shares followed the broader market nicely higher on Monday, up more than 2% at last check while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.07% , S&P 500 /zigman2/quotes/210599714/realtime SPX +0.48% and tech-heavy Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +1.29% all gained ground.

/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 317.94
-0.31 -0.10%
Volume: 38.40M
May 29, 2020 4:00p
P/E Ratio
24.92
Dividend Yield
1.03%
Market Cap
$1379.40 billion
Rev. per Employee
$1.98M
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/zigman2/quotes/202894679/composite
US : U.S.: NYSE
$ 115.92
-0.14 -0.12%
Volume: 7.99M
May 29, 2020 4:00p
P/E Ratio
65.51
Dividend Yield
2.73%
Market Cap
$287.32 billion
Rev. per Employee
$727,304
loading...
/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 148.75
+1.78 +1.21%
Volume: 8.51M
May 29, 2020 4:00p
P/E Ratio
23.20
Dividend Yield
2.72%
Market Cap
$387.21 billion
Rev. per Employee
$603,509
loading...
/zigman2/quotes/208744353/composite
US : U.S.: Nasdaq
$ 131.55
-0.74 -0.56%
Volume: 13.34M
May 29, 2020 4:00p
P/E Ratio
25.53
Dividend Yield
3.11%
Market Cap
$183.55 billion
Rev. per Employee
$242,172
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/zigman2/quotes/203410047/composite
US : U.S.: NYSE
$ 117.30
+0.55 +0.47%
Volume: 17.85M
May 29, 2020 4:00p
P/E Ratio
39.58
Dividend Yield
0.00%
Market Cap
$210.88 billion
Rev. per Employee
$295,532
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/zigman2/quotes/204169771/composite
US : U.S.: NYSE
$ 5.87
-0.30 -4.86%
Volume: 524,838
May 29, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
27.26%
Market Cap
$338.35 million
Rev. per Employee
N/A
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
25,383.11
-17.53 -0.07%
Volume: 545.14M
May 29, 2020 5:14p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,044.31
+14.58 +0.48%
Volume: 4.38B
May 29, 2020 5:14p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
9,489.87
+120.88 +1.29%
Volume: 4.24M
May 29, 2020 5:16p
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Shawn Langlois is an editor and writer for MarketWatch in Los Angeles. Follow him on Twitter @slangwise.

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