Ready to buy back into this market? If so, forget about Apple and grab these stocks instead, strategist says – MarketWatch



‘The market is utterly underestimating how much of a shock the coronavirus is going to be to the economy. And I think for the next 12 months, the U.S. consumer is only going to spend his money or her money on [nondiscretionary] goods. So, within that basket, I think you have to let Apple go.’

That is Boris Schlossberg of BK Asset Management, explaining to CNBC why Apple
AAPL,
+2.06%

has no place in an investor’s portfolio amid the coronavirus pandemic.

“Anything that is discretionary I think will be absolutely not spent a penny on for at least a year,” Schlossberg said.

Instead, he said investors should take a look at adding companies poised to benefit in the coming months, such as Procter & Gamble
PG,
+2.33%

nd Johnson & Johnson
JNJ,
+6.60%
.

Why P&G? Well, Jefferies just upgraded the Charmin-maker, hailing the company as “among the best in staples to weather near-term macro headwinds.”

And as for Johnson & Johnson, the company aims to start a Phase 1 trial by the end of 2020, “compared to the typical five to seven years it takes for this milestone in vaccine development,” Paul Stoffels, J&J’s chief scientific officer, said earlier this month.

Read:These 16 companies are working on coronavirus treatments or vaccines

Schlossberg also said he’d pick PepsiCo
PEP,
+2.04%

over Disney
DIS,
+1.02%

and, perhaps more obviously, over Royal Caribbean
RC,
-6.06%
,
for the same reasons.

Watch the full interview:

Apple shares followed the broader market nicely higher on Monday, up more than 2% at last check while the Dow Jones Industrial Average
DJIA,
+1.99%
,
S&P 500
SPX,
+2.45%

and tech-heavy Nasdaq Composite
COMP,
+2.92%

all gained ground.

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