NEW YORK (Real Money Pro) -- After spending all last week in a remarkably narrow trading range, stocks began this holiday-shortened week on a decidedly down note. Major indices posted their worst one-day decline since April on Tuesday as a rapidly strengthening dollar, falling oil prices and the latest game of chicken being played in Greece took their toll.
The market is overdue for at least a temporary bout of increasing volatility and a chance of a correction in some parts of the market. Even smiling Jim Paulsen, who can be counted on for a consistently optimistic view about the equity markets, believes stocks have formed a major top. Investors may face their first real adversity since the opening weeks of 2015.
This can mean only one thing: It's time to put together a shopping list should the summer bring lower entry points to investors who have some "dry powder" to deploy. A good place to start is with health care stocks that still can show good growth even in a tepid global economy. Let's start with the As.
Begin with biotech pioneer Amgen (AMGN), whose shares are down almost $15 from recent highs. The stock has had good technical support all year at just under the $155-a-share level. I would love to add to my current position if the stock pulls back another $5 or so. The company is showing solid growth in revenues and earnings, sells in line with the overall market multiple and yields 2% as well.