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Finding Hidden Gems: Investing Wisely in a Bearish Climate


Markets rise and fall all the time. But only when the stocks fall by 20% or more is the market considered bearish. Bear markets typically occur due to a significant change in market conditions. This can happen due to inflation, rapid increases in interest rates, etc. 

Conditions such as a bear market offer excellent opportunities to invest in high-quality stocks. This article will focus on two such hidden gems to invest in a bearish climate for a quality return on your investment. 

Newmont Gold 

Newmont Gold (TSX:NGT) has successfully completed the acquisition of Newcrest Mining through its subsidiary Newmont Overseas Holdings Pty Ltd. The acquisition announced its eligible shareholders to receive 0.400 units of Newmont Securities and was completed under a scheme approved by the Newcrest Board. 

With this acquisition, Newmont shares joined the ASX 200. However, being a U.S.-listed company, the merger has posed quite a challenge. For instance, Newcrest investors on the ASX have received CDIs that allow foreign-listed shares to trade on ASX. 

According to Palmer, Newmont’s chief executive officer (CEO), this merger is expected to strengthen the company’s portfolio and build the best collection of copper and tier-one gold assets. 

This acquisition resulted in a 1.18% gain in shares. Adding to the positive note, Newmont has ended the strike at its Peñasquito mine with an 8% increase in pay for each shift. 

Restaurant Brands 

When it comes to dividend payments, Restaurant Brands (TSX:QSR) is one of the top choices for investors. However, the blue-chip stock’s recent earnings have shown a drop in its revenue owing to Burger King’s slowed-down growth. Although, the company is spending $400 million to renew its Burger King business.

The report has both ups and downs. For instance, the company’s revenue grew 6.4% from its revenue of $1.84 billion in the past year. Additionally, the profit of $0.90 per share also topped analysts’ estimates. 

Restaurant Brands has recently announced that it plans to amend its Revolving Credit and Term Loan Facilities. This should provide ample liquidity for the company to continue to grow and improve financial flexibility. This move, in combination with what appears to be a rock-solid balance sheet, makes this a stock I think is worth owning for the long term at these levels. This says nothing of the company’s strong dividend yield and impressive growth outlook over the long term.

Bottom line

Both of these companies have delivered great returns in the past and have been favourites among investors. In this bearish market, add these two blue-chip stocks to your portfolio to have great returns on your investment when the prices are sky high. 

The post Finding Hidden Gems: Investing Wisely in a Bearish Climate appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Newmont Mining Corporation?

Before you consider Newmont Mining Corporation, you’ll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in November 2023… and Newmont Mining Corporation wasn’t on the list.

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See the 5 Stocks
* Returns as of 11/14/23

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More reading

The Top Stocks to Buy With $2,500 Right Now
2 Canadian Stocks That Could Fly Higher in an Early “Santa Rally”
2 Top Mining Stocks to Buy on the TSX Today
3 Stocks to Defend Your Wealth as Interest Rates Rise
Sitting on Cash? These 3 TSX Stocks Are Great Buys

Fool contributor Chris MacDonald has positions in Restaurant Brands International. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

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