To The Moon

A time of challenging market conditions (like we’re seeing today) can be a frustrating time to invest. There is, however, a silver lining. A market downturn is a great opportunity to load up on high-quality names. For example, large-cap stocks with strong fundamentals.

When stocks overall move lower, that’s the case for both more speculative plays, as well as sturdier opportunities. The latter may not experience as sharp of a plunge as the former. In fact, some of them, like commodities stocks, can perform well, as rising commodities prices outweigh external factors. Still, if you have a long time horizon in mind, you can enter/add to a position at an ideal price point.

So, what are some examples of such plays?

Occidental Petroleum (OXY)

The sharp rise in oil prices, plus Warren Buffett’s big purchase of shares, have resulted in an epic run forOccidental Petroleum(NYSE:OXY) so far this year. It’s up 125% year-to-date.

However, don’t take this to mean you’ve “missed out” on this opportunity. This remains one of the best large-cap stocks out there to make a long-term holding. Why? There are many factors, not just Russia’s invasion of Ukraine, that are behind the spiking of crude oil prices. Prices could stay elevated for longer than expected.

Long-term, there’s something else (not talked about that much) that could mean continued growth for OXY stock. That would beits move into “net-zero” oil. Moving into this area could pay off down the road, if stricter environmental regulations require its use. Benefiting from high oil prices, and with a “green” catalyst hiding in plain sight, it’s a buy.

This stock earns an “A” rating in myPortfolio Grader.

$Occidental(OXY)$