Motley Fool Picks 3 Financial Stocks for a Market Correction as Volatility Threats Build
Updated
Updated · The Motley Fool · May 16
Motley Fool Picks 3 Financial Stocks for a Market Correction as Volatility Threats Build
2 articles · Updated · The Motley Fool · May 16
Summary
Three financial names — Berkshire Hathaway, JPMorgan Chase and BlackRock — were highlighted as buy-on-the-dip picks if another 10% market correction hits.
The call rests on rising volatility risks from geopolitical tensions, ballooning government deficits, persistent consumer price pressure and an elevated CAPE ratio after two years of sharp selloffs followed by rebounds.
Berkshire brings a $397 billion cash pile and nearly $24 billion in free cash flow, positioning it to deploy capital if asset prices fall.
JPMorgan posted $16.5 billion in first-quarter net income and holds a $1.5 trillion liquidity buffer, while BlackRock drew $130 billion of inflows and lifted revenue 27% to $6.7 billion.
The broader thesis is that large, well-capitalized financial firms with scale, cash generation and recurring fee income could be better placed than peers to weather and exploit a downturn.