3 Stocks to Pounce on When the Market Crashes
Betting on a crash is usually a losing bet since the market generally goes up over the long term. That said, the Federal Reserve is poised to start reducing its support for the economy in general, which could be a catalyst for a major sell-off. If that happens, an investors should take a hard look at defensive stocks, which protect a portfolio during turbulent economic times -- starting with these three promising candidates.
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When the stock market crashes, it makes sense for investors to hunker down and pick up some defensive stocks. One of the hardest things to do is "time" a falling market. High-flying growth stocks often fall way further than people think they will. Instead, think about defensive stocks. Defensive stocks are largely insensitive to the economy; the companies often provide a service or produce goods that people will buy regardless of the state of the economy. For example, an apparel retailer will have a lot more sensitivity to general economic conditions than a drugstore or convenience store.
Source Fool.com
