5 Stocks to Buy for the Long Term


Jim Jubak Image Jim Jubak Founder and Editor, JubakPicks.com

This volatile market encourages investors to take any profits and run. But that short-term thinking has only helped make these long-term plays more attractive, writes MoneyShow's Jim Jubak, also of Jubak's Picks.

This is a market that encourages short-term thinking even from long-term investors. In a market supported and driven by central bank cash flows, moves are big and sometimes even clear.

Right now, for example, the government of Prime Minister Shinzo Abe in Japan is determined to weaken the yen. Despite the recent volatility that comes from the criticism of Japanese policy at the meetings of the leaders of the G7 and G20 economies—the world's big economies—it's hard to see this trend not running until the yen hits 100 or 105 to the US dollar.

For a month or two or three, buying shares of Japanese exporters makes sense, even if you think the long-term trend in the Japanese economy is down and down some more.

Sure, housing stocks like PulteGroup (PHM) and shares of oil refiners such as Marathon Petroleum (MPC), which are tied to the mid-continent oil boom in the United States, are up 123% and 93% respectively in the past year. But the trends behind these stocks are still going strong and the market momentum is still with them, so isn't it worth jumping on board for a while?

Shares in pummeled sectors such as Yingli Green Energy (YGE) in solar or Banco Bilbo Vizcaya (BBVA) among European banks are up 106% and 33%, respectively, in the past three months.