This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Government Shutdown Investing List

Stocks in this article: MA SBUX BA

NEW YORK ( TheStreet) -- Politics have dominated stock market action recently, and that's unlikely to change soon.

The continuing government shutdown and the looming mid-October debt ceiling debate are creating a lot of noise for investors.

But why not invest in what's working, instead of looking at a stock and thinking, What might happen to it if the government shutdown lasts really long? or This is kind of a risky play, but it might work out if the S&P 500 doesn't plunge.

At times like this, so many investors avoid buying what is working and get distracted by the noise and fear.

One caveat, however: Although stocks like Netflix (NFLX), Tesla Motors (TSLA) and Facebook (FB) keep ripping higher, I'm apprehensive to put money to work there.

Why? Well simply put, their fundamental stories aren't compelling enough at current valuations.

There are plenty of stocks that have strong fundamental stories and strong uptrends. Stocks such as Visa (V), MasterCard (MA) and Starbucks (SBUX) all have all been incredibly strong in 2013, and there's a reason: quality.

Boeing (BA) is another name that should continue to "work."

We'll be lucky, though, if it gets knocked down 15 or 20 points because of the government shutdown and fears about Boeing's defense business. That's because it would present us with a buying opportunity. Boeing has a big enough backlog for its passenger jets to satisfy investors for years.

Remember, Boeing pays a dividend yield of 1.75% (which used to be much bigger before the stock appreciated 55% this year).

The other good names I mentioned also might see pullbacks. But look at their multiyear charts. Those of Visa and MasterCard show a gradually rising straight line from left to right.

Turning to Starbucks, it has been a beast, and its international story is just getting started. The 1,000 current locations in China, which management is regarding as its new growth market, are expected to increase 33% to 1,500 by the end of 2014. The company deserves its premium valuation, simply because it is a premium company.

The bottom line is simple: In prosperous times, buying quality companies with strong trends will pay off handsomely. In times of trouble, it'll pay off twice as well.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs