There is a good chance we are headed into a recession, yet there are stocks worth owning. I believe that there are opportunities available where one can do well in a bull or bear market. Drugstore chains CVS and Walgreens both trade at a little over ten times next years earnings estimates. While a recession will hurt business, earnings are unlikely to fall off a cliff. They have secular tailwinds in that aging baby boomers will be filling more prescriptions and a move to generics benefits them. Both companies are aggressively returning cash to shareholders via share repurchases and dividends. I own both names.
Vodafone owns wireless communication businesses around the World. They trade at a double digit forward free cash flow yield and an 8% dividend yield. I don't believe many people will give up their cell phones, even in a recession. Impoverished people in third world countries have cell phones. I don't see consumers giving up cell phones en masse, even in a recession. I own Vodafone as well.
When you read that I am long stocks, do not think that means I am an economic bull. I am very worried about the economy and uncertain about the future. However, there are businesses that should be fine in a recession and that are trading at very attractive prices.