Beware These 2 Stocks -- Buy These 5 Instead

Welcome to StockUp, the investing newsletter that's silently impressed by your cool custom Zoom background. -------------------------------------------------------------------------------------------------- [View this email in your browser]( Welcome to StockUp, the investing newsletter that's silently impressed by your cool custom Zoom background. This week, two stocks to avoid like an unmasked shopper coughing at the supermarket, and five more that'll keep your portfolio healthy in the midst of a global pandemic and a plunging market. Plus, Warren Buffett's advice on whether now's a good time to buy, and how to become a better investor by harnessing the awesome power of your mind. Sorry, telepathy is not involved. — Nathan Alderman, StockUp Editor REAL HEROES WEAR MASKS COVID-19 Update: Instead, Picture a Wildflower-Strewn Meadow --------------------------------------------------------------- Someday we'll be able to start this section with good news. (Or just not have it at all.) Unfortunately, today is not that day. While the growth rate for new U.S. infections shows tentative signs of slowing, cases themselves are still rising rapidly — and deaths may be rising even faster. A chaotic federal response hasn't helped. Reports suggest that the government has been taking dwindling supplies from its emergency stockpiles and, instead of sending them directly to states in need, handing them over to private companies to resell to states. A few states and cities have even reported having their privately purchased shipments of badly needed protective gear seized by the federal government. Thankfully, states that find themselves with more supplies than they need are stepping up to send their surplus gear to other states that need it more. Many states' governors (from both parties, we hasten to add) have taken smart moves to protect their populations by keeping people indoors and away from big public gatherings. Others ... have not. With any luck, we're heading toward the peak of the pandemic, but that doesn't mean things will necessarily get better right away — they may simply get less worse. And at least as we write this, the federal government has not detailed any plan for getting society out of quarantine and back up and running once the initial wave of the pandemic crests. We mentioned last week that 10 million Americans had filed for unemployment in the previous two weeks. This week, including upward adjustments to the previous week's figures, that number rose to roughly 17 million over the past three weeks. If you need a handy comparison, the U.S. economy lost a net total of roughly 9 million jobs during the entirety of the 2008-2009 Great Recession. Former Fed chair Janet Yellen told The Washington Post that the U.S. unemployment rate has now reached 12%-13%, the worst figure since the Great Depression (that’s with a "D," not an "R.") The government's new $350 billion program to aid small businesses has already been overwhelmed with requests for help and will likely need hundreds of billions more in funding. Millions of Americans, including many of the folks struggling the most, will have to wait months or wrestle with red tape to get even the modest help available for individuals — if they're eligible or able to claim those benefits at all. Meanwhile, many of the nonpartisan, long-serving inspectors general charged with keeping the federal government honest and efficient — including one heading the panel intended to ensure that coronavirus bailout funds are spent on the straight and narrow, and another from the Department of Health and Human Services who compiled conversations with hundreds of hospitals to shed light on nationwide shortages of vital medical supplies — are getting fired or demoted by the executive branch. But the news isn't all doom and gloom. In several of the hardest-hit states, the growth curve of new infections does appear to be flattening. New data from Washington state projects that the state's swift early actions mean it will endure roughly 50% fewer deaths than it originally feared. That outlook has improved enough for the state to return hundreds of ventilators to the federal stockpile. And last week, The Motley Fool [donated $1 million]( to help COVID-19 relief efforts in New York. We asked Fools like you to help however you could. You stepped up in a big way, adding more than $55,000 to our donation and doing your part to help your own communities. We're proud of you, Fools, and you can read a thank-you message from co-founders Tom and David Gardner below. Stay safe, stay kind, stay far away from other people when you can (or wear a cloth mask when you can't), and wash those hands, Fools. We'll get through this together. --------------------------------------------------------------- THE FEARFUL/GREEDY CONTINUUM Stocks to Avoid — and Buy — Right Now While the market's rebounded some from its lowest lows, we remain firmly in the shaggy paws and pointy teeth of a surly bear market. That certainly hurts if you're looking back on the roughly 11 years of steady gains that preceded our recent plunge, but the picture looks at least a shade brighter when you regard it as an opportunity. Historically, times like these have been some of investors' best chances to buy into well-run companies at a deep discount and reap the rewards when times eventually get better. But not every company will be a winner, in the short or the long term. At least a few stocks that might at first seem like no-brainers for a society dependent on the Internet and stuck indoors most of the time have hidden weaknesses that make them poor picks for the long haul. Rather than trying to guess which stocks will be hot right now, we encourage you to instead look at stocks that have been solid performers for a long time. The very best companies will remain healthy and robust — operationally, if not in terms of their share prices — through good times and bad. We've rounded up a few examples of stocks in both categories: - Fool contributor Tim Green suggests you keep far away from these two deceptively appealing [socially distanced stocks](. - Meanwhile, Fool contributor Sean Williams has found [five no-brainer buys during the most bearish of markets](. --------------------------------------------------------------- Already subscribed to a premium service? [Click here]( to view your subscriptions. Not a member yet? [Click here]( to sign up! --------------------------------------------------------------- BRAVO, FOOLS Watch: Tom and David Gardner Thank You [An Update from The Motley Fool]( A message of gratitude from the Fool's founding brothers about how Fools like you have helped fight the spread of COVID-19. --------------------------------------------------------------- WWWBD? Buy Stocks or Wait? Here's Buffett's Advice You may have heard us mention, very occasionally, an obscure investor known as Warren Buffett. The Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) CEO isn't called "The Oracle of Omaha" for nothing. With the market down — but not as far down as it previously was — many investors with their fingers hovering above the "buy" button are wondering whether buying in now will score them Buffett-like returns. Happily, Buffett's never been shy about sharing advice. We've been able to glean a few choice pearls of wisdom from his decades of public statements and letters to shareholders that might help you make up your own mind. - "Short-term market forecasts are poison." Strangely enough for a guy with an oracular reputation, Buffett thinks that attempting to predict short-term market moves is strictly for chumps. Instead of trying to guess where the market will go next, Buffett tries to figure out which well-run companies are selling for cheap at the moment. - Ups? Downs? Doesn't matter when you keep buying. Like food at the grocery store, Buffett buys stocks on a regular basis. While he certainly likes to buy them on the cheap, he figures that in the long haul, the highs and lows will balance out. Get more advice to help make your decisions easier when you [read the rest](. --------------------------------------------------------------- ALEXA, IS TOM HANKS OKAY? GOOD, PHEW [Smart Speaker] Not sure what to ask your smart speaker? Keep up with what's happening in the market by adding our daily flash briefing to your home assistant. Just look for The Motley Fool on your Amazon Alexa or Google Home app, click subscribe, and then you're good to go. --------------------------------------------------------------- MIND OVER MARKETS Why Your Mind Matters Most for Successful Investing "Success in investing doesn't correlate with IQ ... what you need is the temperament to control the urges that get other people into trouble in investing." That counsel came from some guy named Warren Buffett — hey, we know him! — and, like the tips above, it's worth your attention. Your brain can be your own worst enemy — or your best friend — when you invest. Here are a few key lessons that can help any investor make better decisions: - You are not a child of Lake Woebegon. In other words, we can't all be above average — even though studies show that we all tend to think we are. We're not saying you're not smart! (You're also very good-looking, and you have an excellent singing voice.) We're just saying that assuming you're dumber than you think you are, and planning accordingly, can sometimes keep you out of trouble. - David Bowie and Freddie Mercury would like a word. As it turns out, humans make really terrible decisions when we're ... under pressure. [Cue iconic bass line here.] Avoid making investing choices when you're distracted, constrained for time, or otherwise stressed out by the terror of knowing what this world is about. You'll enjoy better outcomes by deciding important questions when you've got a little time and space to relax. - Invest like a four-year-old. We're not suggesting you draw on the walls, put things in your mouth that you really shouldn't, or throw a fit when you don't get your way. Instead, we mean that you should ask a lot of questions, constantly, about everything. Avoiding assumptions, remaining open to new information, and looking for the things that could go wrong in every choice you make can help you make smarter investments in the long run. For more on how you can turn your own brainpower into better returns in the market, [read the rest](. --------------------------------------------------------------- CALLS. ANSWERS. ROBERT. EXPERTISE. SPLENDID! FEATURED PODCAST [Motley Fool Answers]( Why You Should Care About the CARES Act Robert Brokamp outlines eight provisions of the Coronavirus Aid, Recovery, and Economic Security Act that may fortify your finances for the coming year. [Subscribe on iTunes]( --------------------------------------------------------------- IT'S THIS OR REWATCHING TIGER KING Quick Reads - [Caution, falling yields:]( These stocks' dividends might not remain tantalizingly high for long. - [Captive audience:]( Roku (NASDAQ: ROKU) chooses a smart time to invest in international growth. - [Aw, thanks, Uncle Sam! You shouldn't have!]( Take the big gift the IRS just gave you while you still have the chance. --------------------------------------------------------------- A TWEET INSIDE AN INSTA INSIDE A RIDDLE INSIDE AN ENIGMA Social Media Post of the Week [Save when you can so you have more options and control when you can't.]( [See all our Instagram posts!]( Join the 1,300,000+ people who follow us! [Facebook]( [Twitter]( [Instagram]( [YouTube]( [LinkedIn]( We work fervently, fastidiously, and Foolishly to make sure all the facts and figures we publish in our emails are 100% accurate and up to date. Returns as of April 08, 2020. Have a question or topic you'd like to see covered in a future edition of Stock Up? Email us at stockup@fool.com. Our mailing address is: The Motley Fool | 2000 Duke St. | Alexandria, VA 22314 Want to change how you receive these emails? You can [update your preferences]( or [unsubscribe from this list](. This is a promotional message from The Motley Fool Copyright © 1995-2020 The Motley Fool. All rights reserved. [Legal Information.](