3 Blue-Chip Stocks To Buy At A Discount As Nasdaq Nears Correction

Stocks fell again Thursday amid a string of selling as U.S. Treasury yields climb. The downturn was driven by technology stocks and pushed the Nasdaq right near correction territory, down roughly 10% from its mid-February records.  

The selling continued as Federal Reserve Chairman Jerome Powell once again committed to the central bank’s easy-money policies. Wall Street has beefed up its bond selling in anticipation of more government spending and the potential of a vaccine-boosted economic recovery later this year. The yield on the 10-year U.S. Treasury has soared from 1% in late January to over 1.5% on Thursday—its highest level in over a year.

The recently-noisy inflation concerns call into question elevated tech valuations and higher yields make the S&P 500’s dividend less appealing. That said, yields still remain ultra-low by historical standards and the bullish outlook for 2021 remains largely in place as the S&P 500’s earnings outlook improves.

Timing the market precisely is next to impossible. Think about all the money left on the table by not at least dollar-cost averaging into strong stocks as the market tumbled last March. Even though corrections are healthy aspects of the market, they are not super common, which is why many savvy Wall Street firms take advantage of them.

Therefore, investors with long-term horizons might want to consider buying strong stocks at a discount, even if the market faces more selling…

Nike (NKE Quick Quote NKE - Free Report)

Nike has thrived in a fluid industry where it’s difficult to stay on top. The company’s ability to create trends, constantly adapt, and attach the Swoosh to the biggest sports, athletes, and cultural icons in the world will help it grow and compete against global rival Adidas, as well as Lululemon (LULU Quick Quote LULU - Free Report) and other newer players. NKE remains one of the world’s most valuable brands alongside the likes of McDonald’s (MCD Quick Quote MCD - Free Report), Disney (DIS Quick Quote DIS - Free Report), and many of the tech giants.

The company has built a robust e-commerce business that includes various shopping apps and a massive reach across social media platforms such as Instagram where consumers can now shop directly. Nike’s transition to a higher-margin, direct-to-consumer model sets it up to thrive in the Amazon era.

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