Of all the insight I've heard over these few crazy months, the most telling came from an investor who appeared on CNBC last fall and, being entirely serious, advised, "There're only two positions to be in right now: cash, and fetal."
I get it. Even with the recent rally, the economy remains wrapped in failure. Many companies that overleveraged their balance sheets are permanently impaired and will never fully rebound. AIG (NYSE: AIG) comes to mind. We had an unprecedented boom; now we're crawling out of an unprecedented bust. That's how markets work.
Even so, history tells us time and time again that the good gets out with the bad in times like these. Using the wisdom of our 140,000-member-strong CAPScommunity, I've hunted down a few dirt cheap, high-quality companies. Have a look:
Company
Recent Share Price
Forward P/E Ratio
5-Year Expected Growth Rate
Dividend Yield
CAPS Rating (out of 5)
K-Swiss (Nasdaq: KSWS)
$9.04
N/A
19%
***
Johnson & Johnson (NYSE: JNJ)
$61.16
12.45
7.68%
3.2%
*****
Clorox (NYSE: CLX)
$58.23
12.65
9.67%
3.4% Continued...
Morgan Housel is a Motley Fool contributor.
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