WOW Stocks For 2023

WOW Stocks for 2023

I will enter 2023 once again in a defensive investment and personal finance posture. Whereas I am cautiously optimistic that some of the worst market carnage is behind us, one never knows and many risks still persist.

Will the elusive artificial recession arrive? Will pandemic disruptions return? How will I be prepared for any other “black swan” events that could come our way next year? Here’s some ways to stop worrying about money.

Regardless of the results, I will outline 3 stocks I will add positions in to weather any storms and grow wealth.

Recession

Let’s discuss the elephant in the room first, the “R” word. I am bit annoyed by this because it feels like a man made recession is coming that the media talked about for a year. And the real biggie is that the Fed is determined to break something to bring inflation down.

Global Instability

Global uncertainty is here for the foreseeable future. The world is self dividing into autocratic blocks and democratic blocks. Nation states are another man made concept that the current world organizes itself. At times the various blocks will try and punish each other through various means of economic warfare. Unfortunately for the average citizen of both blocks this can create disturbances and economic uncertainties.

My point is to be cautious of when and where you invest. There could be further disruptions ahead when nation states squabble. The global instability does not stop at nation state differences, but extends to further disruptions caused primarily by pandemic related activities and climate change.

Themes

For 2023 I am generally tracking a several themes. The first is back to fundamentals. No more men madness. The funds and ventures I invest in need to be based on sound principals of cash flow, debt management, PE ratios, quality and transparent management, etc. No more to the moon horse crap and crypto bros in the Bahamas.

Another theme for me is strategic diversification. In 2022 there was really no place to hide in the asset world. BUT, some weathered storms better than others. Let’s say you were 100% in BlockFi crypto — then essentially you lost everything. Conversely,  you were 100% in real estate you certainly took a haircut, but at least the asset did not vanish into thin air. By the same token, if you had strategically maneuvered into more Energy exposure then you actually came out ahead or at least did a great job of mitigating loss. But remember, if properly diversified into quality you don’t lose until you lock in losses with a sell.

My final theme is more related to wealth building. We forget that a good defense is as critical as offense in any game. Therefore I am re focusing on frugality and effective budgeting. What can I continue to trim from expenses in order to save more. This is a 100% instant return on investment when we can simply keep more of what we have in hand.

WOW Stocks For 2023

It is very hard to predict what stocks will be the best for 2023, and generally I stick to diversified ETF’s and low cost funds. But here are 3 I will add positions to in the beginning of the year.

Every good stock investing article needs a plucky and memorable acronym. So here goes: WOW! I am buying Walmart, O Realty Income and Waste Management, or WOW!

Why WOW now?

I am buying WOW now to sleep at night, grow wealth and take advantage of 3 wise investments in these unsure times we find ourselves in.

Walmart

WOW Stocks WMT

WOW Stocks WMT

The first thing is food and essentials that everyone across our great country will need to live. And they will continue to seek out the stuff they need at the lowest possible prices. That brings us to Walmart. Walmart has the reach and buying power to weather any financial storm.

This is one of those classic safe haven stocks that allows a person to sleep at night knowing they are invested in the future earnings of a strong and profitable company.

O “Realty Income”

WOW Stocks O

My one is real estate. And one of my all time favorite go to real estate investment trusts is Realty Income, ticker “O’. Realty Income owns a wide variety of commercial real estate with a diversified mix of business tenants.

Realty Income (O) was founded in 1969 by a husband and wife team. As one of the first REITs, Realty Income started with a single investment in a Taco Bell and now owns more than 6,400 properties across America that are leased to about 300 commercial tenants in 50 different industries.

Retail properties generate 83% of the REIT’s rental revenue. The firm also owns industrial warehouses (11%), offices (4%), and farmland (2%).

WOW Stocks O Reality Income

Waste Management

WM

WOW Stocks WMT

My last WOW stock, is Waste Management (WM). People in 2023 will continue to generate waste and all that waste has to managed.

Very few companies have been able to do what WM did this past year. It posted strong profit and sales growth every quarter, defying the 2022 bear market. Waste Management stock outperformed 82% of all stocks over the past 52 weeks.

Once again, this stock and company have proved resilient to stresses in the economy and market.

Conclusion & Performance

The WOW stocks I outline here are examples of industries and companies with powerful fundamentals going into 2023. Are they the best stocks? I really do not know, no one does. Will they perform the best? We do not know. But this is the art and the science of investing. We take a look at the world around and try to find the best investments for the environment we find ourselves in.

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