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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 +0.19%  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 +0.06% and Johnson & Johnson /zigman2/quotes/201724570/composite JNJ +0.42% .

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 +0.84%  over Disney /zigman2/quotes/203410047/composite DIS +0.74% and, perhaps more obviously, over Royal Caribbean /zigman2/quotes/204169771/composite RC +0.15% , 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 -0.56% , S&P 500 /zigman2/quotes/210599714/realtime SPX -0.09% and tech-heavy Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +0.13% all gained ground.

/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 148.31
+0.28 +0.19%
Volume: 71.25M
Dec. 1, 2022 4:00p
P/E Ratio
24.30
Dividend Yield
0.62%
Market Cap
$2354.88 billion
Rev. per Employee
$2.40M
loading...
/zigman2/quotes/202894679/composite
US : U.S.: NYSE
$ 149.25
+0.09 +0.06%
Volume: 6.93M
Dec. 1, 2022 4:03p
P/E Ratio
25.87
Dividend Yield
2.45%
Market Cap
$353.46 billion
Rev. per Employee
$759,066
loading...
/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 178.74
+0.74 +0.42%
Volume: 6.28M
Dec. 1, 2022 4:00p
P/E Ratio
24.88
Dividend Yield
2.53%
Market Cap
$465.38 billion
Rev. per Employee
$678,214
loading...
/zigman2/quotes/208744353/composite
US : U.S.: Nasdaq
$ 185.90
+1.54 +0.84%
Volume: 4.68M
Dec. 1, 2022 4:00p
P/E Ratio
26.59
Dividend Yield
2.47%
Market Cap
$255.58 billion
Rev. per Employee
$257,178
loading...
/zigman2/quotes/203410047/composite
US : U.S.: NYSE
$ 98.59
+0.72 +0.74%
Volume: 13.86M
Dec. 1, 2022 4:03p
P/E Ratio
57.23
Dividend Yield
0.00%
Market Cap
$178.47 billion
Rev. per Employee
$375,364
loading...
/zigman2/quotes/204169771/composite
US : U.S.: NYSE
$ 13.42
+0.02 +0.15%
Volume: 957,256
Dec. 1, 2022 4:00p
P/E Ratio
6.03
Dividend Yield
12.52%
Market Cap
$1.48 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,395.01
-194.76 -0.56%
Volume: 0.00
Dec. 1, 2022 5:17p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,076.57
-3.54 -0.09%
Volume: 0.00
Dec. 1, 2022 5:17p
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
11,482.45
+14.45 +0.13%
Volume: 5.27B
Dec. 1, 2022 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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