Stocks to Buy: Morningstar's 10 Undervalued Picks for a US Recession – Business Insider

This post was originally published on this site

  • American investors are still fretting about a potential recession.
  • Morningstar listed international stocks it thinks won’t slip if the fears become a reality.
  • Here are the research firm’s 10 cheap, recession-proof stocks.

Despite Joe Biden’s best efforts, investors are still worrying about a potential recession.

The US president predicted this week that the US will dodge a prolonged economic downturn, arguing that a strengthening labor market will help to ward off negative growth.

“We’re not going to be in a recession, in my view,” Biden said. “The [un]employment rate is still one of the lowest we’ve had in history… my hope is we go from this rapid growth to steady growth.”

Recession fears have hit markets in 2022, with major US indices suffering a broad and deep sell-off. The S&P 500 has tumbled 16% year-to-date, while the Nasdaq has plunged nearly 24%.

And whether or not Biden proves right about a recession, US stocks still look overvalued compared to international equities, according to Morningstar.

“Return expectations for both US stocks and bonds have improved since the start of the year,” the investment firm’s director of content Susan Dziubinski said in a recent research note. “But most firms continue to expect better returns from international stocks than US stocks and bonds during the next decade.”

Buying international stocks could help investors to hedge their portfolio in case the US suffers a recession, Dziubinski said. 

Morningstar highlighted 10 European and Asian stocks that now look particularly undervalued. US investors can buy them through either ADRs or over-the-counter trading platforms.

This post was originally published on *this site*