With most experts warning of a market crash, here are the three robust stocks we recommend to conserve your capital.
Johnson & Johnson (NYSE:JNJ) – A healthcare giant
Johnson & Johnson, founded in 1886, has become a worldwide staple in healthcare and pharmaceuticals. Its healthcare products include brands such as Band-Aid, Benadryl, Listerine, and Tylenol; J&J also boasts successful pharmaceutical and medical device businesses. In other words, J&J forms an integral part of most people’s basic healthcare and pharmaceutical needs, meaning it is a company you can count on.
Two main reasons account for the company’s fortitude in the face of challenges. The first is that its dividend program is among the best for large-cap stocks. Moreover, no company better understands its industry; J&J has succeeded despite potential setbacks, such as patent expirations, time and time again. For these reasons, Johnson & Johnson should persist during the next economic collapse.
McDonald’s (NYSE:MCD) – The golden great
McDonald’s has upheld enormous growth this year, trading nearly 30 times more than its expected earnings. This growth builds on the company’s historical precedent for persevering and succeeding even during market collapses.
One reason for its robustness is its business model: Customers can get good food quickly and affordably, even when finances are tight. For proof, consider that McDonald’s stock rose about 5.6% during the 2008 crash while the S&P 500 fell just short of 40%. Today, the company continues to rebrand and increasingly attract millennials and Gen Z consumers, ensuring its positive outlook. Further, its dividend program is among the strongest on the planet. McDonald’s stronghold shows no signs of weakening, making it a durable stock to buy ahead of the next market crash.
General Motors (NYSE:GM) – Navigational experts
Already relatively cheap with a P/E under 20, General Motors has taken measures to withstand the potential recession. For one, it has shifted focus to more profit-generating trucks and crossover models. A leaner GM will mean higher profit margins even if automobile sales decrease. In fact, some analyses suggest that we have already seen past the cyclical downturn in car sales. Overall then, GM’s exceptional foresight and execution should see it through a market downturn.
-Investing Insider Magazine
