Government Shutdown Investing List

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.

At the time of publication, Kenwell author was long MA, V, and SBUX.

-- Written by Bret Kenwell in Petoskey, Mich.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

More from Opinion

Cable Stock Investors Should Keep an Eye On Wireless Broadband's Rise

Cable Stock Investors Should Keep an Eye On Wireless Broadband's Rise

Trump Blinks on China Trade War That's Looking Harder to Win

Trump Blinks on China Trade War That's Looking Harder to Win

Monday Madness: GE, China, and Micron

Monday Madness: GE, China, and Micron

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

How Technology Will Unleash the Legal Marijuana Industry's Growth Potential

How Technology Will Unleash the Legal Marijuana Industry's Growth Potential