Though the recent frequency of red ink in the equities market has been painful, it’s difficult to say that it was surprising given that the benchmarkS&P 500index started the year on a dour note. Unfortunately, the go-go period following the initial impact of the coronavirus pandemic has faded, and the bill must be paid. Nevertheless, patient investors can use this headwind to strategize which blue-chip stocks to buy at fire sale prices.
By seemingly most indications, the market is headed lower, at least in the near term. One of the biggest negative catalysts for the bearish cycle is the rising inflation rate. First, you have an increasingly untenable cost-of-living situation, which in turn spells lower revenue potential for myriad industries. Second, the Federal Reserve hasn’t been the most aggressive in addressing the matter, which isn’t great news for stocks.
Essentially, investors prefer some reliable framework to base their trades on. Without it, circumstances look volatile, which is catalyzing a risk-off sentiment throughout the capital markets. Still, such a dynamic could benefit prospective participants of blue-chip stocks to buy, which are right now offering trusted stability at a discount.
Boeing (BA)
When it comes to corporate antics that drive regular folks crazy,Boeing(NYSE:BA) may be the poster child of bad actors. Most notably, the management team engaged inaggressive stock buybacks, which would be fine during bullish cycles. However, when the Covid-19 crisis struck, those same buybacks left Boeing in a much weaker position. It also forced the firm to seek a bigger bailout from American taxpayers.
Then you have the whole 737 Max 8 controversy. To recap, two Max 8 jetliners — Lion Air Flight 610 and Ethiopian Airlines Flight 302 — crashed due to issues within the newly implemented Maneuvering Characteristics Augmentation System (MCAS). These two incidents caused a black eye on Boeing, forcing the Max 8 to be grounded between March 2019 and December 2020.
Without taking anything away from the ugliness, Boeing nevertheless remains an American icon. With travel demand picking up along with the military conflict in Ukraine possibly bolstering Boeing’s defense business, BA is an interesting name among blue-chip stocks to buy.
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