There could be a new market low in 2023. Investors can hide in these 5 stocks, MKM Partners says

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These stocks are solid places to invest during a recession, according to MKM Partners.

The stock market could reach new lows in the new year, but there are some stocks where investors can weather market volatility, according to MKM Partners. Many of the forces that have weighed on stocks in 2022 will remain in 2023, at least in the first half of the year. That includes economic uncertainty in the wake of aggressive rate hikes from the Federal Reserve to tame high inflation.

"Lingering pressures on spending have historically pushed consumers to hold onto their vehicles longer and make repairs themselves out of economic necessity," wrote analyst David Bellinger. "In our view, O'Reilly should continue its push towards $40+ in earnings power amid more programmatic buybacks. In the insurance sector, MKM's top pick is Arch Capital Group . "Arch Capital Group remains our top pick as it is the most levered Insurer in the U.S.

 

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