The stock market can be a fickle place. Stock prices, exchange rates, and interest levels are affected by numerous situations both domestically and from far afield. There have even been historic events that affect the stock market, but a few stocks have weathered the storm and have even thrived while others struggled. Here is a look at some almost bulletproof stocks.
Stocks in the healthcare sector
No matter what the global economy is going through, people will always need access to healthcare. Some healthcare and pharmaceutical stocks did exceptionally well during the COVID-19 pandemic because of the sale of vaccines. Companies such as Johnson & Johnson and Pfizer were among the first out of the gate in creating vaccines. In fact, the COVID-19 vaccine has become one of the most lucrative products in history, with Pfizer raking in a whopping $37 billion in vaccine sales in 2021.
During a global recession, people tend to cut down on their leisure spending first, which means more time spent at home and in the kitchen. For this reason, companies that typically produce or sell household staples tend to be stable even in a recession. These companies include:
- Companies that sell household cleaning products, like Procter & Gamble who are responsible for products such as Dawn, Crest, and Tide;
- Grocery stores, such as Kroger, tend to do well when people spend more time at home;
- CVS Health and Walgreens Boots Alliance have continued to enjoy sustainability even in an unstable economy.
People will always need the lights to stay on and for water to run through their taps. Companies specializing in electricity or water supply, waste management, or natural gas are typically very stable in a volatile market.
Affordable retail stores
During tough times, people are more willing to forego luxuries such as calling a professional to do home improvements and maintenance or car repairs. This means that they will need to purchase products to maintain their homes and cars themselves. Retail companies that offer these products at a reasonable price will often be stable during a global recession. Examples of these companies include Walmart, Home Depot, and Costco.
It is possible to feel involved in a company’s ethos without the pressure of personally choosing stocks. For example, Berkshire Hathaway is a multinational holding company run by Warren Buffet, arguably the greatest investor of all time. Those that jumped on the bandwagon early on have seen astonishing results. From 1964-2021, Berkshire Hathaway stock prices returned 3,641,613%, with most of the businesses in the portfolio categorized as those mentioned above.
Other low-volatility investments
A low volatility stock is a steady stock that maintains its value over the long term. In addition, these companies tend to be dominant in their respective industries. Examples include companies like Coca-Cola, one of the world’s most dominant beverage companies, and Lockheed Martin, a large defense contractor, is usually relatively stable. Nothing can make these companies completely bulletproof, but they tend to be less affected by market movement than some other stocks.
There’s no such thing as a stock that is entirely bulletproof, but there are many stocks that have survived through multiple recessions, crises, and corporate bombshells. A safer bet, long-term investments are rarely the flashy businesses that make headlines, but they keep pushing forward, regardless of what is happening in the world around them.
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