Here's My Tasty Stock Pick for 2022

Right now, we're sandwiched between inflation and other economic concerns and the pandemic's turn for the worse. But I've got an idea that could sweeten the picture for investors. Before I tell you the stock to buy, I want to give some big-picture context. To do so, I want you to look at the monthly chart of the S&P 500. This chart shows how far we've come since the last true market crash, back in 2008 (shaded yellow). Charts by TradeStation. Back then, the S&P 500 lost approximately half its value in less than a year. If a similar event were to occur in 2022, we could see the large cap index trade down to 2350. I'm not suggesting a crash will occur this year, but I'm not going to be caught off guard if it does happen. This means I don't want to overload on tech. The reason is because of its volatility. I'll continue to trade tech, but I'm not looking for new long-term holds in this sector at the moment. I'm also avoiding the banking sector, despite the likelihood of higher interest rates. Rising rates are usually positive for bank earnings, but I'm concerned about the continuing real estate crisis in China. Credit rating agency S&P Global has officially declared Evergrande to be in selective default, and other real estate giants, like R&F Properties, have recently been downgraded to junk by ratings agencies Moody's and Fitch. The interconnected nature of financial institutions can create unseen risk, the extent of which is revealed after property values crash. Interest rate hikes are generally negative for stocks, and according to the Fed's December meeting, we're likely to see three increases in the Fed Funds rate in the coming year. However, no matter what happens to interest rates and the economy in 2022, consumers are still going to eat. They're going to drink coffee. Their kids are going to make peanut butter and jelly sandwiches, and eat snacks. They're going to buy pet food. In other words, consumers are going to continue to buy products manufactured and sold by J.M. Smucker . The company owns well-known brands such as Folger's, Jif, and Milk Bone. Over the past six months, Smucker has formed an inverted-head-and-shoulders pattern (curved black lines) on its daily chart. This bullish continuation pattern suggests the stock could reach $160. Smucker's longer-term charts are also bullish. On the monthly chart, we see a rounded bottom continuation pattern that has been five years in the making. Based on these two charts, Smucker could be a winner in both the near-term and long-term time frames. In late November, Smucker's released its second quarter earnings report, and the results exceeded expectations. While the company faced higher input costs, CEO Mark Smucker noted that demand for the company's products remained strong despite price increases. Smucker reported fiscal second quarter revenue of $2.05 billion for the quarter, beating analysts' expectations of $1.95 billion. Earnings came in at $2.43 per share for the quarter, well ahead of estimates of $2.05. In addition to bullish charts and a strong outlook, Smucker offers a dividend yield just shy of 3%. All things considered, now might be a good time to take a position in the stock.

Here's My Tasty Stock Pick for 2022

I'm going to show you a good stock to buy and hold for the new year -- with charts and a delicious reason why.

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